Cognizant Technology Solutions (NASDAQ:CTSH) Price Target Raised to $93.00

Key Points

• Nomura raised its price target on Cognizant to $93 (from $92) and kept a Buy rating, implying about a 76% upside, but analysts are mixed overall (10 Buys, 13 Holds) with an average target of $81.65.
• Q1 results beat expectations with EPS of $1.40 vs. $1.33 and revenue of $5.41B (in line), plus 21% quarterly bookings growth and FY‑2026 EPS guidance of $5.63–$5.77.
• The company’s strategic moves—most notably the roughly $600M Astreya acquisition and a cost‑cutting/restructuring program—have prompted investor concern about near‑term dilution, integration and execution risk, contributing to a recent ~3.4% stock decline.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its target price upped by equities research analysts at Nomura from $92.00 to $93.00 in a note issued to investors on Thursday,MarketScreener reports. The firm presently has a "buy" rating on the information technology service provider's stock. Nomura's price objective would suggest a potential upside of 75.94% from the stock's current price.

Several other research analysts have also recently issued reports on the stock. BMO Capital Markets set a $83.00 target price on shares of Cognizant Technology Solutions in a report on Thursday, February 12th. Mizuho set a $87.00 target price on shares of Cognizant Technology Solutions in a report on Monday, February 9th. 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. Deutsche Bank Aktiengesellschaft upgraded Cognizant Technology Solutions from a "hold" rating to a "buy" rating and set a $100.00 price target on the stock in a research note on Monday, January 26th. Finally, Citigroup restated a "neutral" rating on shares of Cognizant Technology Solutions in a research note on Thursday. Ten equities research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $81.65.

Cognizant Technology Solutions Stock Down 3.4%

Shares of NASDAQ:CTSH traded down $1.84 during trading on Thursday, hitting $52.86. 1,849,676 shares of the company were exchanged, compared to its average volume of 6,410,557. The firm's 50 day moving average price is $61.12 and its 200-day moving average price is $71.72. Cognizant Technology Solutions has a 12-month low of $52.44 and a 12-month high of $87.03. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.14 and a quick ratio of 2.14. The stock has a market capitalization of $25.28 billion, a P/E ratio of 11.61, a PEG ratio of 1.19 and a beta of 0.98.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its earnings results 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. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. The business had revenue of $5.41 billion during the quarter, compared to analysts' expectations of $5.41 billion. During the same quarter in the prior year, the business posted $1.23 EPS. The company's revenue for the quarter 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. On average, research analysts predict that Cognizant Technology Solutions will post 5.65 earnings per share for the current fiscal year.

Insider Transactions at Cognizant Technology Solutions

In related news, insider Surya Gummadi sold 1,728 shares of the firm's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total transaction of $143,527.68. Following the transaction, the insider owned 25,641 shares in the company, 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 available through the SEC website. 0.32% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Checchi Capital Advisers LLC grew its stake in shares of Cognizant Technology Solutions by 3.4% in the 4th quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider's stock valued at $320,000 after purchasing an additional 127 shares during the last quarter. Unison Advisors LLC grew its stake in shares of Cognizant Technology Solutions by 0.5% in the 4th quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider's stock valued at $2,498,000 after purchasing an additional 138 shares during the last quarter. TD Waterhouse Canada Inc. grew its stake in shares of Cognizant Technology Solutions by 7.2% in the 4th quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider's stock valued at $177,000 after purchasing an additional 143 shares during the last quarter. Security National Bank of SO Dak grew its stake in shares of Cognizant Technology Solutions by 0.6% in the 2nd quarter. Security National Bank of SO Dak now owns 24,635 shares of the information technology service provider's stock valued at $1,922,000 after purchasing an additional 150 shares during the last quarter. Finally, Haven Private LLC grew its stake in shares of Cognizant Technology Solutions by 1.9% in the 3rd quarter. Haven Private LLC now owns 8,451 shares of the information technology service provider's stock valued at $567,000 after purchasing an additional 157 shares during the last quarter. Hedge funds and other institutional investors own 92.44% of the company's stock.

Key Headlines Impacting Cognizant Technology Solutions

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

• Positive Sentiment: Q1 EPS beat and bookings strength — Cognizant reported $1.40 GAAP/adjusted EPS (above consensus) with revenue roughly in line and 21% quarterly bookings growth, which supports revenue momentum and margin improvement expectations. Cognizant Reports First Quarter 2026 Results
• Positive Sentiment: Dividend declared — the company announced a $0.33 quarterly dividend (record May 18), offering income support for shareholders. Dividend / Earnings Materials
• Positive Sentiment: Strategic AI moves — Cognizant agreed to buy Astreya to expand AI-first managed services and named Cognizant Global AI Services Partner of the Aston Martin Aramco F1 team, reinforcing its AI positioning. These enhance long‑term growth potential in AI infrastructure and services. Cognizant to Acquire Astreya
• Neutral Sentiment: Guidance mixed — FY‑2026 EPS was set to 5.630–5.770 (roughly in line with consensus) and adjusted operating‑margin guidance was raised slightly, but the company’s Q2 revenue outlook came in below some sell‑side estimates. Q1 Results & Guidance
• Neutral Sentiment: Analyst price‑target moves — Wedbush cut its PT to $56 and moved to Neutral; JPM lowered its PT but kept an Overweight rating. These adjustments add conflicting signals on near‑term upside. Benzinga / Analyst Notes
• Negative Sentiment: Near‑term revenue concern and cost actions — markets reacted to a Q2 revenue outlook miss and the company’s announcement of a cost‑cutting program, which signal growth pressure and execution risk over the next few quarters. Q2 Outlook Miss & Cost Cuts
• Negative Sentiment: Astreya acquisition reaction — although strategic for AI infrastructure, the ~ $600M deal prompted investor concern about near‑term dilution, integration risk and margin pressure, contributing to negative sentiment. Reuters: Cognizant to buy Astreya
• Negative Sentiment: Restructuring risk (Project Leap) — analysts flagged Project Leap as a costly restructuring that could strain productivity and profitability during execution, adding execution risk to the stock’s outlook. TipRanks: Project Leap Risks

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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