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

Key Points

• UBS cut its price target on Cognizant from $67 to $64 and kept a "neutral" rating, implying only about a 5.7% upside from the prior close.
• The analyst consensus remains a Hold (nine Buys vs. thirteen Holds) with an average target of $85.47, indicating significant dispersion among broker targets versus UBS's view.
• Cognizant recently beat quarterly estimates (EPS $1.35 vs. $1.32; revenue $5.33B vs. $5.31B) and set FY2026 guidance of roughly 5.56–5.70 EPS, signaling solid underlying fundamentals despite mixed analyst sentiment.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) had its price target dropped by stock analysts at UBS Group from $67.00 to $64.00 in a research report issued to clients and investors on Monday,Benzinga reports. The brokerage presently has a "neutral" rating on the information technology service provider's stock. UBS Group's price target suggests a potential upside of 5.73% from the company's previous close.

CTSH has been the subject of several other research reports. Morgan Stanley raised their target price on Cognizant Technology Solutions from $80.00 to $82.00 and gave the company an "equal weight" rating in a research note on Thursday, February 5th. TD Cowen decreased their price target on Cognizant Technology Solutions from $85.00 to $71.00 and set a "hold" rating for the company in a research report on Friday, March 13th. Royal Bank Of Canada increased their price target on Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a "sector perform" rating in a research report on Thursday, February 5th. Wedbush initiated coverage on Cognizant Technology Solutions in a research report on Thursday. They issued a "neutral" rating and a $61.00 price target for the company. Finally, Weiss Ratings lowered Cognizant Technology Solutions from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Thursday, March 19th. Nine research analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $85.47.

Cognizant Technology Solutions Price Performance

CTSH stock traded up $2.61 during trading hours on Monday, hitting $60.53. 6,025,263 shares of the stock traded hands, compared to its average volume of 6,425,744. The stock has a 50-day simple moving average of $64.76 and a 200 day simple moving average of $72.58. Cognizant Technology Solutions has a one year low of $57.39 and a one year high of $87.03. The company has a market cap of $28.95 billion, a P/E ratio of 13.30, a P/E/G ratio of 1.26 and a beta of 0.98. The company has a current ratio of 2.14, a quick ratio of 2.14 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last announced its earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.03. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.The business had revenue of $5.33 billion during the quarter, compared to analysts' expectations of $5.31 billion. During the same quarter last year, the business posted $1.21 earnings per share. The company's quarterly revenue was up 4.9% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Equities analysts forecast that Cognizant Technology Solutions will post 4.98 earnings per share for the current year.

Insider Transactions at Cognizant Technology Solutions

In related news, insider Surya Gummadi sold 1,728 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the completion of the sale, the insider directly owned 25,641 shares of the company's stock, valued at approximately $2,129,741.46. This represents a 6.31% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.32% of the company's stock.

Institutional Investors Weigh In On Cognizant Technology Solutions

Hedge funds have recently bought and sold shares of the business. Checchi Capital Advisers LLC raised its stake in shares of Cognizant Technology Solutions by 3.4% during the 4th quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider's stock worth $320,000 after purchasing an additional 127 shares in the last quarter. Unison Advisors LLC raised its stake in shares of Cognizant Technology Solutions by 0.5% during the 4th quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider's stock worth $2,498,000 after purchasing an additional 138 shares in the last quarter. TD Waterhouse Canada Inc. raised its stake in shares of Cognizant Technology Solutions by 7.2% during the 4th quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider's stock worth $177,000 after purchasing an additional 143 shares in the last quarter. Security National Bank of SO Dak raised its stake in shares of Cognizant Technology Solutions by 0.6% during the 3rd quarter. Security National Bank of SO Dak now owns 24,785 shares of the information technology service provider's stock worth $1,662,000 after purchasing an additional 150 shares in the last quarter. Finally, Haven Private LLC raised its stake in shares of Cognizant Technology Solutions by 1.9% during the 3rd quarter. Haven Private LLC now owns 8,451 shares of the information technology service provider's stock worth $567,000 after purchasing an additional 157 shares in the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

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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