Cognizant Technology Solutions (NASDAQ:CTSH) Given New $56.00 Price Target at Wedbush

Key Points

• Wedbush cut its price target on Cognizant from $61 to $56 and maintained a "neutral" rating, implying only about a 5% upside from the prior close.
• Q1 EPS beat—Cognizant reported adjusted EPS of $1.40 (vs. $1.33 est.), raised FY‑2026 adjusted operating margin guidance (~16.0–16.2%), and agreed to acquire Astreya for roughly $600M to bolster its AI/managed‑services capabilities.
• Analyst views are mixed (consensus "Hold" with an average price target of $82.35) while the stock trades near $53 and shows heavy institutional ownership (over 90% held by funds), reflecting divergent sentiment despite recent operational positives.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its price target cut by research analysts at Wedbush from $61.00 to $56.00 in a report released on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the information technology service provider's stock. Wedbush's price target indicates a potential upside of 5.02% from the stock's previous close.

Other research analysts have also issued reports about the stock. Robert W. Baird set a $72.00 price objective on shares of Cognizant Technology Solutions and gave the stock a "neutral" rating in a research note on Friday, April 10th. JPMorgan Chase & Co. lowered their target price on shares of Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating for the company in a report on Tuesday. UBS Group dropped their price target on shares of Cognizant Technology Solutions from $67.00 to $64.00 and set a "neutral" rating for the company in a research note on Monday, April 13th. Argus upgraded shares of Cognizant Technology Solutions to a "hold" rating in a report on Tuesday, February 10th. Finally, Deutsche Bank Aktiengesellschaft raised shares of Cognizant Technology Solutions from a "hold" rating to a "buy" rating and set a $100.00 price objective on the stock in a research report on Monday, January 26th. Ten analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the stock. Based on data from MarketBeat.com, Cognizant Technology Solutions presently has an average rating of "Hold" and an average price target of $82.35.

Cognizant Technology Solutions Trading Down 2.5%

Shares of CTSH stock opened at $53.32 on Thursday. The company has a market cap of $25.50 billion, a PE ratio of 11.69, a price-to-earnings-growth ratio of 1.19 and a beta of 0.98. Cognizant Technology Solutions has a 1 year low of $52.44 and a 1 year high of $87.03. The stock's 50 day simple moving average is $61.12 and its two-hundred day simple moving average is $71.72. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.14 and a quick ratio of 2.14.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping analysts' consensus estimates of $1.33 by $0.07. The firm had revenue of $5.41 billion during the quarter, compared to analysts' expectations of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.The company's quarterly revenue was up 5.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. Research analysts predict that Cognizant Technology Solutions will post 5.65 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Surya Gummadi sold 1,728 shares of the firm's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $83.06, for a total value of $143,527.68. Following the transaction, the insider owned 25,641 shares of the company's stock, valued at $2,129,741.46. This trade represents a 6.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 0.32% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of institutional investors have recently modified their holdings of CTSH. Norges Bank purchased a new stake in shares of Cognizant Technology Solutions in the fourth quarter valued at approximately $690,959,000. GQG Partners LLC bought a new stake in Cognizant Technology Solutions during the 4th quarter valued at $673,651,000. CIBC Bancorp USA Inc. bought a new stake in Cognizant Technology Solutions during the 3rd quarter valued at $201,834,000. Cibc World Markets Corp purchased a new stake in shares of Cognizant Technology Solutions in the 4th quarter worth $234,671,000. Finally, Pzena Investment Management LLC lifted its holdings in shares of Cognizant Technology Solutions by 14.9% in the 1st quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider's stock worth $1,243,096,000 after buying an additional 2,633,683 shares during the period. 92.44% of the stock is owned by hedge funds and other institutional investors.

Key Cognizant Technology Solutions News

Here are the key news stories impacting Cognizant Technology Solutions this week:

• Positive Sentiment: Q1 EPS beat and strong bookings — Cognizant reported adjusted EPS of $1.40 (vs. $1.33 est.), revenue up 5.8% y/y and 21% quarterly bookings growth with seven large deals, supporting growth momentum and margin improvement. Cognizant Reports First Quarter 2026 Results
• Positive Sentiment: Raised adjusted operating margin guidance — management nudged FY 2026 adjusted operating margin higher (to ~16.0–16.2%), which supports profitability expectations even as revenue growth remains moderate. Cognizant Reports First Quarter 2026 Results
• Positive Sentiment: Strategic AI infrastructure deal — Cognizant agreed to buy Astreya (~$600M) to deepen AI-first managed services and data-center capabilities, accelerating cloud/AI ops scale that management views as core to future growth. Cognizant to Acquire Astreya, Deepening Its AI-First Managed Services Capabilities at Scale
• Positive Sentiment: Income return and investor-friendly moves — Board declared a $0.33 quarterly dividend (yield ~2.4%), which can support total-return investors and signals confidence in cash flow.
• Positive Sentiment: Brand & innovation initiatives — New Cognizant Innovation Network and designation as Global AI Services Partner to Aston Martin Aramco F1 boost the AI/brand narrative and pipeline for enterprise deals. Cognizant's Innovation Network a Fast Track to Enterprise Value Cognizant Named Aston Martin Aramco Formula One™ Team Global AI Services Partner
• Neutral Sentiment: FY EPS guidance roughly in line with consensus (5.63–5.77) — guidance is consistent with analyst expectations but leaves limited upside absent stronger revenue trends. Cognizant Reports First Quarter 2026 Results
• Neutral Sentiment: Analyst markup but lower target — JPMorgan kept an Overweight rating but trimmed its price target from $92 to $74, a calibration that tempers upside expectations. Benzinga
• Negative Sentiment: Near-term revenue miss and Q2 outlook weakness — management updated Q2 revenue guidance below Street expectations (~$5.5B vs. ~$5.6B consensus), which prompted near-term selling pressure. Cognizant falls after Q2 revenue outlook miss; unveils cost-cutting plan
• Negative Sentiment: Restructuring risks and Project Leap concerns — commentary and third‑party coverage flagged elevated execution and productivity risks from Project Leap and restructuring, which could pressure margins and delivery if not managed. Cognizant’s Costly ‘Project Leap’: Restructuring Push Raises Risks to Productivity, Profitability, and Competitive Position
• Negative Sentiment: Market reaction to Astreya buy — despite strategic rationale, the ~$600M acquisition and mixed quarters prompted sell‑side caution and contributed to downward pressure on the stock. Cognizant to buy Astreya for about $600 million

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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