Cognizant Technology Solutions (NASDAQ:CTSH) Updates FY 2025 Earnings Guidance

Key Points

• Cognizant Technology Solutions has issued FY 2025 earnings guidance, projecting earnings per share between $5.080-$5.220, slightly above the consensus estimate of $5.078.
• The company also provided revenue guidance of $20.7 billion-$21.1 billion, compared to the consensus estimate of $20.8 billion.
• Cognizant's stock is currently rated as a "Hold" by the majority of analysts, with a consensus price target of $85.88.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) updated its FY 2025 earnings guidance on Wednesday. The company provided EPS guidance of 5.080-5.220 for the period, compared to the consensus EPS estimate of 5.078. The company issued revenue guidance of $20.7 billion-$21.1 billion, compared to the consensus revenue estimate of $20.8 billion. Cognizant Technology Solutions also updated its Q3 2025 guidance to EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Deutsche Bank Aktiengesellschaft assumed coverage on shares of Cognizant Technology Solutions in a research note on Thursday, July 17th. They set a "hold" rating and a $80.00 price objective for the company. Needham & Company LLC reaffirmed a "hold" rating on shares of Cognizant Technology Solutions in a research note on Thursday, May 1st. Evercore ISI assumed coverage on shares of Cognizant Technology Solutions in a research note on Thursday, July 17th. They set an "outperform" rating and a $100.00 price objective for the company. Robert W. Baird upped their price objective on shares of Cognizant Technology Solutions from $78.00 to $82.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. Finally, Barclays dropped their target price on shares of Cognizant Technology Solutions from $103.00 to $90.00 and set an "overweight" rating for the company in a research report on Friday, April 25th. Fourteen analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $85.88.

Cognizant Technology Solutions Stock Down 1.6%

Shares of Cognizant Technology Solutions stock traded down $1.17 on Friday, hitting $70.59. 5,356,605 shares of the company's stock traded hands, compared to its average volume of 3,446,974. The stock has a market cap of $34.80 billion, a P/E ratio of 14.35, a PEG ratio of 1.49 and a beta of 0.90. The company has a quick ratio of 2.22, a current ratio of 2.41 and a debt-to-equity ratio of 0.04. The firm's 50-day moving average is $77.93 and its 200 day moving average is $78.61. Cognizant Technology Solutions has a 52-week low of $65.52 and a 52-week high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its earnings results on Wednesday, July 30th. The information technology service provider reported $1.31 EPS for the quarter, beating the consensus estimate of $1.26 by $0.05. The company had revenue of $5.25 billion during the quarter, compared to analysts' expectations of $5.17 billion. Cognizant Technology Solutions had a return on equity of 16.77% and a net margin of 11.89%. The business's revenue was up 8.1% on a year-over-year basis. During the same period in the prior year, the business posted $1.17 EPS. Equities analysts anticipate that Cognizant Technology Solutions will post 4.98 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 26th. Stockholders of record on Monday, August 18th will be given a $0.31 dividend. This represents a $1.24 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date is Monday, August 18th. Cognizant Technology Solutions's dividend payout ratio (DPR) is presently 25.20%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Geneos Wealth Management Inc. lifted its position in shares of Cognizant Technology Solutions by 118.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider's stock worth $44,000 after buying an additional 309 shares during the last quarter. Acadian Asset Management LLC bought a new position in shares of Cognizant Technology Solutions in the 1st quarter worth about $142,000. Finally, Brighton Jones LLC bought a new position in shares of Cognizant Technology Solutions in the 4th quarter worth about $214,000. 92.44% of the stock is currently owned by institutional investors.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.