Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Given Average Rating of "Hold" by Brokerages

Key Points

• Consensus "Hold" rating from 22 analysts (12 hold, 10 buy) with an average 12‑month target of $75.45.
• Several firms recently cut targets — TD Cowen to $62, Wells Fargo to $83, HSBC to $80 and JPMorgan to $74 — while Deutsche Bank upgraded to a buy with a $100 target.
• Cognizant beat Q1 EPS estimates at $1.40, gave FY2026 EPS guidance of $5.63–$5.77, declared a quarterly dividend of $0.33 (≈2.6% yield), and trades at a PE of 11.16 with a market cap around $24.6B.

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) have been assigned a consensus recommendation of "Hold" from the twenty-two ratings firms that are covering the company, MarketBeat reports. Twelve equities research analysts have rated the stock with a hold recommendation and ten have given a buy recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $75.45.

A number of analysts have weighed in on the company. TD Cowen restated a "hold" rating and issued a $62.00 price target (down from $71.00) on shares of Cognizant Technology Solutions in a research note on Thursday, April 30th. Wells Fargo & Company cut their price target on Cognizant Technology Solutions from $98.00 to $83.00 and set an "overweight" rating on the stock in a research note on Thursday, April 30th. HSBC cut their price target on Cognizant Technology Solutions from $98.00 to $80.00 in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft upgraded Cognizant Technology Solutions from a "hold" rating to a "buy" rating and set a $100.00 target price on the stock in a research report on Monday, January 26th. Finally, JPMorgan Chase & Co. cut their target price on Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 28th.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several institutional investors have recently added to or reduced their stakes in CTSH. JPL Wealth Management LLC acquired a new position in Cognizant Technology Solutions in the 3rd quarter valued at about $25,000. Lodestone Wealth Management LLC purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at approximately $28,000. Flagship Harbor Advisors LLC purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at approximately $28,000. Physician Wealth Advisors Inc. boosted its holdings in Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock valued at $28,000 after purchasing an additional 213 shares in the last quarter. Finally, Prosperity Bancshares Inc purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at approximately $29,000. Institutional investors and hedge funds own 92.44% of the company's stock.

Cognizant Technology Solutions Trading Down 1.0%

NASDAQ:CTSH opened at $51.33 on Thursday. The firm has a market cap of $24.55 billion, a PE ratio of 11.16, a price-to-earnings-growth ratio of 1.09 and a beta of 0.81. The stock has a fifty day moving average price of $60.42 and a 200 day moving average price of $71.45. Cognizant Technology Solutions has a 12-month low of $50.81 and a 12-month high of $87.03. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share for the quarter, beating analysts' consensus estimates of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The company had revenue of $5.41 billion for the quarter, compared to analysts' expectations of $5.41 billion. During the same period last year, the firm earned $1.23 earnings per share. Cognizant Technology Solutions's quarterly revenue was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Sell-side analysts anticipate that Cognizant Technology Solutions will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Monday, May 18th will be given a $0.33 dividend. This represents a $1.32 annualized dividend and a yield of 2.6%. The ex-dividend date is Monday, May 18th. Cognizant Technology Solutions's payout ratio is 28.70%.

About Cognizant Technology Solutions

Cognizant Technology Solutions NASDAQ: CTSH is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.

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