Cognizant Technology Solutions Corporation $CTSH Shares Sold by California State Teachers Retirement System

Key Points

• California State Teachers Retirement System reduced its Cognizant stake by 3.2% in the first quarter, selling 24,144 shares and retaining 738,814 shares valued at approximately $45.3 million. Institutional investors collectively own 92.44% of the company.
• Cognizant’s second-quarter revenue rose 4.5% year over year to $5.48 billion, while bookings increased 5% and full-year adjusted EPS guidance was raised to $5.70–$5.82. However, adjusted EPS of $1.37 narrowly missed estimates, and weaker third-quarter revenue guidance reflected cautious client spending.
• The company is emphasizing AI growth, citing more than 8,000 AI engagements and expanded AI platforms, while also authorizing a $2 billion share buyback. Analysts remain mixed, with a consensus “Hold” rating and an average price target of $63.17 versus the stock’s reported $53.90 opening price.

California State Teachers Retirement System lessened its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Free Report) by 3.2% during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 738,814 shares of the information technology service provider's stock after selling 24,144 shares during the quarter. California State Teachers Retirement System owned about 0.16% of Cognizant Technology Solutions worth $45,326,000 as of its most recent SEC filing.

Several other institutional investors also recently added to or reduced their stakes in the company. Pzena Investment Management LLC boosted its holdings in shares of Cognizant Technology Solutions by 14.9% in the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider's stock valued at $1,243,096,000 after acquiring an additional 2,633,683 shares during the period. Invesco Ltd. grew its position in shares of Cognizant Technology Solutions by 8.6% during the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider's stock worth $840,669,000 after acquiring an additional 987,395 shares during the last quarter. Norges Bank acquired a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $690,959,000. GQG Partners LLC acquired a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $673,651,000. Finally, FIL Ltd raised its position in Cognizant Technology Solutions by 46.6% in the 4th quarter. FIL Ltd now owns 6,680,508 shares of the information technology service provider's stock valued at $554,482,000 after purchasing an additional 2,122,600 shares during the last quarter. Institutional investors and hedge funds own 92.44% of the company's stock.

Cognizant Technology Solutions News Roundup

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

• Positive Sentiment: Management highlighted more than 8,000 AI engagements, growth in its AI platforms and a shift toward becoming an “AI builder.” The company is also organizing an OpenAI Codex hackathon involving 10,000 associates in India, supporting its strategy to scale AI-led services. Cognizant Q2 Earnings Call Focuses on AI Builder Shift
• Positive Sentiment: Second-quarter revenue increased 4.5% year over year to approximately $5.5 billion, led by 12% growth in Financial Services. Operating margins expanded, bookings rose 5% to $29.1 billion, and adjusted full-year EPS guidance was raised to $5.70-$5.82. Cognizant also repurchased about $1.1 billion of stock. Cognizant Reports Second Quarter 2026 Results
• Positive Sentiment: Analyst sentiment provided some support: Wells Fargo raised its price target to $67 and assigned an overweight rating, while Morgan Stanley increased its target based on Cognizant’s differentiated AI strategy. Morgan Stanley raises Cognizant price target
• Neutral Sentiment: Cognizant declared a quarterly dividend of $0.33 per share, with payment scheduled for August 25 for shareholders of record on August 18. Cognizant dividend announcement
• Negative Sentiment: Adjusted EPS of $1.37 narrowly missed the $1.38 consensus estimate. Higher interest costs contributed to earnings pressure despite revenue meeting expectations. Cognizant Q2 earnings miss
• Negative Sentiment: The company’s third-quarter revenue outlook of $5.6-$5.7 billion was below Wall Street expectations, reflecting cautious client spending on discretionary IT projects. Full-year revenue growth guidance was revised to 4.0%-5.5%, reinforcing concerns that AI investment is benefiting infrastructure spending more quickly than software and services demand. Cognizant forecasts weak quarterly revenue

Analysts Set New Price Targets

Several research analysts have issued reports on CTSH shares. Citigroup reissued a "neutral" rating and set a $60.00 price objective (up from $45.00) on shares of Cognizant Technology Solutions in a research report on Thursday. Mizuho lowered their price target on Cognizant Technology Solutions from $87.00 to $68.00 and set a "neutral" rating on the stock in a report on Wednesday, May 6th. Jefferies Financial Group dropped their price target on Cognizant Technology Solutions from $80.00 to $65.00 and set a "buy" rating on the stock in a research report on Monday, May 4th. The Goldman Sachs Group set a $75.00 price objective on Cognizant Technology Solutions in a research note on Wednesday, April 29th. Finally, JPMorgan Chase & Co. decreased their price objective on Cognizant Technology Solutions from $74.00 to $55.00 and set an "overweight" rating for the company in a research report on Friday, July 24th. Ten analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $63.17.

Cognizant Technology Solutions Stock Down 3.7%

Shares of Cognizant Technology Solutions stock opened at $53.90 on Friday. Cognizant Technology Solutions Corporation has a one year low of $37.08 and a one year high of $87.03. The company has a market cap of $25.54 billion, a P/E ratio of 11.59, a PEG ratio of 1.22 and a beta of 0.87. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.23 and a current ratio of 2.18. The firm has a fifty day moving average of $47.16 and a two-hundred day moving average of $58.58.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.38 by ($0.01). The firm had revenue of $5.48 billion for the quarter, compared to analyst estimates of $5.48 billion. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%.The company's revenue was up 4.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.31 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. On average, analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions declared that its Board of Directors has authorized a share buyback program on Monday, May 18th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the information technology service provider to buy up to 9% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's board of directors believes its stock is undervalued.

Cognizant Technology Solutions Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 18th will be given a dividend of $0.33 per share. The ex-dividend date is Tuesday, August 18th. This represents a $1.32 annualized dividend and a yield of 2.4%. Cognizant Technology Solutions's payout ratio is presently 28.70%.

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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