Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Stock Has Consensus Target Price of $68.04 According to Analysts

Key Points

• Analysts are broadly neutral on Cognizant: Twenty-four brokerages have a consensus “Hold” rating, with 14 holds and 10 buys. The average 12-month price target is $68.04, close to the stock’s reported opening price of $66.36.
• Recent performance was mixed: Cognizant reported $1.37 in quarterly EPS, slightly below the $1.38 consensus, while revenue reached $5.48 billion and grew 4.5% year over year. Analysts expect full-year EPS of approximately $5.74.
• AI initiatives and upcoming earnings are key catalysts: The company is expanding its AI partnership with Travelport, while investors await third-quarter results and guidance. Analysts see potential from AI-driven growth but remain cautious about execution and fundamental upside.

Shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) have received a consensus recommendation of "Hold" from the twenty-four brokerages that are currently covering the firm, MarketBeat reports. Fourteen equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $68.04.

CTSH has been the subject of a number of recent analyst reports. HSBC decreased their price objective on shares of Cognizant Technology Solutions from $80.00 to $68.00 and set a "buy" rating for the company in a research note on Wednesday, July 1st. Needham & Company LLC set a $78.00 target price on Cognizant Technology Solutions in a research report on Monday. Royal Bank Of Canada set a $55.00 price target on Cognizant Technology Solutions in a report on Friday, July 24th. Wedbush reiterated an "outperform" rating and set a $70.00 price target on shares of Cognizant Technology Solutions in a report on Friday, October 9th. Finally, Mizuho set a $64.00 price target on Cognizant Technology Solutions in a research report on Thursday, August 6th.

Cognizant Technology Solutions Price Performance

CTSH stock opened at $66.36 on Thursday. The company has a current ratio of 2.18, a quick ratio of 2.18 and a debt-to-equity ratio of 0.11. Cognizant Technology Solutions has a one year low of $37.08 and a one year high of $87.03. The firm has a market capitalization of $29.89 billion, a PE ratio of 14.27, a P/E/G ratio of 1.32 and a beta of 0.86. The firm has a 50-day moving average of $62.09 and a two-hundred day moving average of $59.50.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last released its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.01). Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%. The firm had revenue of $5.48 billion during the quarter, compared to analysts' expectations of $5.48 billion. During the same period last year, the business earned $1.31 earnings per share. The business's revenue was up 4.5% on a year-over-year basis. On average, analysts forecast that Cognizant Technology Solutions will post 5.74 earnings per share for the current year.

Institutional Trading of Cognizant Technology Solutions

Several institutional investors have recently made changes to their positions in CTSH. Marquette Asset Management LLC boosted its holdings in Cognizant Technology Solutions by 183.9% in the third quarter. Marquette Asset Management LLC now owns 545 shares of the information technology service provider's stock worth $31,000 after purchasing an additional 353 shares in the last quarter. Pension & Wealth Management Advisors Inc. bought a new position in Cognizant Technology Solutions during the third quarter valued at about $35,000. Signature Equity Partners LLC raised its holdings in Cognizant Technology Solutions by 102.4% during the first quarter. Signature Equity Partners LLC now owns 599 shares of the information technology service provider's stock valued at $37,000 after buying an additional 303 shares in the last quarter. Alpine Bank Wealth Management bought a new position in Cognizant Technology Solutions during the third quarter valued at about $38,000. Finally, SJS Investment Consulting Inc. lifted its position in shares of Cognizant Technology Solutions by 1,580.0% in the first quarter. SJS Investment Consulting Inc. now owns 840 shares of the information technology service provider's stock worth $52,000 after buying an additional 790 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: AI partnership expands travel-industry growth prospects: Cognizant and Travelport are deepening their strategic partnership to modernize travel retail using artificial intelligence. The companies aim to build more intelligent, personalized travel-commerce capabilities, potentially creating additional demand for Cognizant’s consulting and technology services. Cognizant, Travelport Join Hands To Modernize Travel Retail With AI
• Positive Sentiment: Analyst price-target increases provide support: Wells Fargo raised its price target for CTSH, while Morgan Stanley increased its target from $51 to $70. Although Morgan Stanley retained an Equal Weight rating, the higher target reflects improved valuation or business expectations. Cognizant Stock Gets Price Target Increase from Wells Fargo Morgan Stanley Raises Cognizant Price Target
• Neutral Sentiment: Investors are focused on the October 29 earnings release: Cognizant expects third-quarter revenue of $5.6 billion to $5.68 billion. Wall Street previews are examining revenue, profitability and other operating metrics to determine whether growth is accelerating. The company’s previous quarter included 4.5% year-over-year revenue growth but a slight EPS miss, increasing the importance of guidance and margins in the new report. CTSH Set to Report Q3 Earnings
• Neutral Sentiment: AI strategy offers upside but execution remains unproven: Coverage of Cognizant’s AI-led EBRD framework highlights the potential for artificial intelligence to drive growth, while noting that converting strategic initiatives into material revenue will depend on client adoption and execution. Can Cognizant Turn AI-Led EBRD Framework Into Growth?
• Negative Sentiment: Valuation and fundamentals remain concerns: Morgan Stanley’s continued Hold stance signals that, despite the higher target, analysts see uncertainties around Cognizant’s fundamental outlook and limited near-term upside. The upcoming earnings report must validate the stock’s recent strength.

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a global information technology services and consulting company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company serves businesses across industries including financial services, healthcare, life sciences, manufacturing, retail and communications.

Cognizant's services include consulting, application development and modernization, cloud computing, data and artificial intelligence, digital engineering, cybersecurity and business process services.

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