Cognizant Technology Solutions Corporation Plans Quarterly Dividend of $0.33 (NASDAQ:CTSH)

Key Points

• Quarterly dividend: Cognizant declared a $0.33 quarterly dividend payable May 27 to holders of record on May 18, implying a 2.4% yield and a $1.32 annualized payout that is covered by a ~24.3% payout ratio and six consecutive years of increases.
• Q1 results and guidance: The company beat EPS estimates with $1.40 versus $1.33 and reported $5.41 billion in revenue (up 5.8% YoY), and set FY2026 guidance of $5.63–$5.77 per share, roughly in line with the $5.65 analyst consensus.
• Market view: Shares recently traded around $54.70 (12‑month range $52.44–$87.03), and analysts hold a consensus Hold rating with an average target of $82.85 amid mixed price targets and opinions.

Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) declared a quarterly dividend on Wednesday, April 29th. Shareholders of record on Monday, May 18th will be paid a dividend of 0.33 per share by the information technology service provider on Wednesday, May 27th. This represents a c) annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Monday, May 18th.

Cognizant Technology Solutions has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 6 consecutive years. Cognizant Technology Solutions has a dividend payout ratio of 24.3% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cognizant Technology Solutions to earn $6.17 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 21.4%.

Cognizant Technology Solutions Stock Performance

CTSH traded down $0.42 during trading on Wednesday, hitting $54.70. The stock had a trading volume of 8,190,563 shares, compared to its average volume of 6,471,864. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.14 and a current ratio of 2.14. The firm has a market capitalization of $26.16 billion, a P/E ratio of 12.02, a PEG ratio of 1.19 and a beta of 0.98. The company's 50-day moving average price is $61.36 and its 200 day moving average price is $71.84. Cognizant Technology Solutions has a twelve month low of $52.44 and a twelve month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.07. The company had revenue of $5.41 billion for the quarter, compared to analysts' expectations of $5.41 billion. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. Cognizant Technology Solutions's revenue was up 5.8% compared to the same quarter last year. During the same period in the previous year, the company posted $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, equities research analysts forecast that Cognizant Technology Solutions will post 5.65 EPS for the current fiscal year.

Analyst Ratings Changes

Several brokerages have issued reports on CTSH. The Goldman Sachs Group dropped their price objective on shares of Cognizant Technology Solutions from $86.00 to $80.00 and set a "neutral" rating on the stock in a research note on Friday, April 10th. Wells Fargo & Company reissued an "overweight" rating and issued a $98.00 price objective (up from $87.00) on shares of Cognizant Technology Solutions in a research note on Wednesday, January 14th. Wedbush assumed coverage on shares of Cognizant Technology Solutions in a research note on Thursday, April 9th. They set a "neutral" rating and a $61.00 price target on the stock. Susquehanna reaffirmed a "positive" rating and set a $98.00 price target on shares of Cognizant Technology Solutions in a research note on Friday, January 23rd. Finally, Argus raised shares of Cognizant Technology Solutions to a "hold" rating in a research note on Tuesday, February 10th. Ten investment analysts have rated the stock with a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $82.85.

Cognizant Technology Solutions Company Profile

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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