Jefferies Financial Group Issues Pessimistic Forecast for Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price

Key Points

• Jefferies cut its price target on Cognizant from $80 to $65 but kept a Buy rating, implying roughly a 22.7% upside from the last close.
• Analysts are split — 10 rate the stock as Buy and 11 as Hold — leaving an average consensus of Hold with an average target of $76.40 as several firms have trimmed targets.
• Cognizant beat quarterly EPS expectations ($1.40 vs. $1.33), set FY2026 guidance of $5.63–$5.77 EPS, and the stock opened at $52.98, trading near its one‑year low and below the 200‑day average.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its price target lowered by stock analysts at Jefferies Financial Group from $80.00 to $65.00 in a note issued to investors on Monday,MarketScreener reports. The brokerage presently has a "buy" rating on the information technology service provider's stock. Jefferies Financial Group's price target would suggest a potential upside of 22.68% from the company's previous close.

A number of other equities analysts also recently commented on the stock. Morgan Stanley reduced their target price on shares of Cognizant Technology Solutions from $70.00 to $63.00 and set an "equal weight" rating for the company in a report on Thursday. TD Cowen restated a "hold" rating and issued a $62.00 target price (down from $71.00) on shares of Cognizant Technology Solutions in a research note on Thursday. Royal Bank Of Canada increased their price objective on Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a "sector perform" rating in a report on Thursday, February 5th. Mizuho set a $87.00 target price on Cognizant Technology Solutions in a research report on Monday, February 9th. Finally, JPMorgan Chase & Co. lowered their price target on Cognizant Technology Solutions from $92.00 to $74.00 and set an "overweight" rating for the company in a report on Tuesday, April 28th. Ten research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $76.40.

Cognizant Technology Solutions Stock Performance

CTSH stock opened at $52.98 on Monday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. The company has a market capitalization of $25.34 billion, a P/E ratio of 11.52, a PEG ratio of 1.14 and a beta of 0.81. The business has a 50-day moving average price of $60.88 and a 200 day moving average price of $71.65. Cognizant Technology Solutions has a 1-year low of $52.28 and a 1-year high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings data 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. The company had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. Cognizant Technology Solutions's revenue was up 5.8% compared to the same quarter last year. During the same period last year, the company posted $1.23 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. As a group, equities research analysts forecast that Cognizant Technology Solutions will post 5.68 EPS for the current fiscal year.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC acquired a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $214,000. Geneos Wealth Management Inc. boosted its holdings in Cognizant Technology Solutions by 118.8% during the first 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 in the last quarter. Acadian Asset Management LLC purchased a new stake in Cognizant Technology Solutions during the first quarter worth $142,000. Cresset Asset Management LLC grew its position in Cognizant Technology Solutions by 11.4% during the second quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider's stock valued at $715,000 after buying an additional 935 shares during the period. Finally, Jump Financial LLC increased its holdings in Cognizant Technology Solutions by 231.4% in the second quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider's stock valued at $2,315,000 after buying an additional 20,716 shares in the last quarter. 92.44% of the stock is owned by institutional investors and hedge funds.

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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