Cognizant Technology Solutions (NASDAQ:CTSH) Releases Earnings Results, Beats Estimates By $0.03 EPS

Cognizant Technology Solutions (NASDAQ:CTSH) announced its quarterly earnings results on Wednesday. The information technology service provider reported $1.35 earnings per share for the quarter, beating analysts’ consensus estimates of $1.32 by $0.03, FiscalAI reports. Cognizant Technology Solutions had a net margin of 10.20% and a return on equity of 17.00%. The firm had revenue of $5.33 billion during the quarter, compared to analysts’ expectations of $5.31 billion. During the same period in the previous year, the company earned $1.21 earnings per share. Cognizant Technology Solutions’s quarterly revenue was up 4.9% compared to the same quarter last year.

Here are the key takeaways from Cognizant Technology Solutions’ conference call:

• Cognizant closed FY‑2025 with $21.1B revenue (+6.4% constant currency), a 15.8% adjusted operating margin (+50 bps YoY), and strong cash generation — $2.7B free cash flow and ~$2B returned to shareholders.
• Large‑deal momentum accelerated: Q4 bookings rose 9% YoY with a record quarterly TCV (12 deals >$100M including one >$1B), 28 large deals for the year (five mega deals) and materially larger deal value vs. a year ago.
• Management is pushing an “AI builder” strategy with >4,000 AI engagements, >30% of developer effort AI‑assisted, proprietary frameworks (BASIS, context engineering), and the 3Cloud acquisition to scale Azure/data & AI capabilities.
• 2026 guidance: revenue growth of 4.0%–6.5% CC (midpoint organic ≈3.8%), adjusted operating margin 15.9%–16.1%, and EPS $5.56–$5.70; Q1 may show a modest sequential decline due to lower bill days and 3Cloud timing.
• Near‑term margin pressures include higher variable compensation (largest since 2018), recent salary increases, an onsite‑heavy Belcan mix that dilutes gross margin, and a one‑time India labor‑code related defined‑benefit liability with modest ongoing cost impact.

Cognizant Technology Solutions Price Performance

Shares of CTSH stock traded up $2.49 during trading hours on Wednesday, hitting $76.99. The company’s stock had a trading volume of 1,687,377 shares, compared to its average volume of 4,652,359. The company has a current ratio of 2.36, a quick ratio of 2.36 and a debt-to-equity ratio of 0.04. The business has a fifty day moving average of $82.92 and a 200-day moving average of $74.98. The stock has a market cap of $37.16 billion, a price-to-earnings ratio of 17.76, a P/E/G ratio of 1.59 and a beta of 0.95. Cognizant Technology Solutions has a twelve month low of $65.15 and a twelve month high of $90.82.

Trending Headlines about Cognizant Technology Solutions

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

• Positive Sentiment: Q4 beat — Cognizant posted $1.35 EPS vs. $1.32 consensus and $5.33B revenue (4.9% YoY growth), signaling continued steady demand and margin improvement. Cognizant (CTSH) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Raised 2026 outlook — management now expects 2026 constant‑currency revenue growth of 4.0%–6.5% and adjusted operating margin of 15.9%–16.1%, above prior expectations, which supports analyst revisions and investor sentiment. Cognizant forecasts annual revenue above estimates
• Positive Sentiment: AI-driven mega‑deals — the company highlighted large, AI‑related contracts (reported ~$500M “mega‑deals”) and stronger bookings, supporting medium‑term revenue upside from digital/AI transformation. IT Services Giant Cognizant Issues Healthy Outlook As $500 Million ‘Mega-Deals’ Fuel AI Growth
• Positive Sentiment: Strong bookings & large deals — trailing 12‑month bookings rose to $28.4B with 28 large deals in 2025 (12 in Q4), indicating a healthy sales pipeline and recurring revenue opportunities. Cognizant Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Shareholder returns boosted — the company plans $1.6B of capital returns in 2026 (including $1B buybacks) and raised the quarterly dividend ~6.5%, which can support EPS and investor confidence. Cognizant rises after Q4, outlook surpass estimates
• Neutral Sentiment: Short‑interest data appears inconsistent — recent feeds show large fluctuations or zero values, suggesting data noise rather than a clear bearish/bullish signal; monitor for corrected disclosures.
• Negative Sentiment: Technical caution — the stock remains below its 50‑day moving average (~$82.92), which could limit near‑term upside despite the positive fundamental news; traders may watch technical resistance.

Insider Activity at Cognizant Technology Solutions

In other news, Director Michael Patsalos-Fox sold 7,000 shares of Cognizant Technology Solutions stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $83.52, for a total value of $584,640.00. Following the completion of the sale, the director owned 47,729 shares of the company’s stock, valued at $3,986,326.08. The trade was a 12.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO John Sunshin Kim sold 2,500 shares of Cognizant Technology Solutions stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $80.00, for a total value of $200,000.00. Following the completion of the sale, the chief accounting officer owned 36,149 shares of the company’s stock, valued at $2,891,920. This trade represents a 6.47% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 27,706 shares of company stock valued at $2,317,281. 0.32% of the stock is owned by insiders.

Institutional Investors Weigh In On Cognizant Technology Solutions

Several hedge funds have recently modified their holdings of CTSH. Brighton Jones LLC purchased a new position in Cognizant Technology Solutions in the fourth quarter valued at about $214,000. Brown Brothers Harriman & Co. boosted its stake in shares of Cognizant Technology Solutions by 109.3% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,463 shares of the information technology service provider’s stock valued at $98,000 after buying an additional 764 shares during the last quarter. FORA Capital LLC acquired a new stake in shares of Cognizant Technology Solutions during the third quarter worth approximately $261,000. MUFG Securities EMEA plc bought a new stake in shares of Cognizant Technology Solutions in the second quarter worth $114,000. Finally, ICONIQ Capital LLC acquired a new stake in Cognizant Technology Solutions in the second quarter valued at $234,000. 92.44% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on CTSH. William Blair raised Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a research report on Friday, November 21st. Royal Bank Of Canada cut their target price on shares of Cognizant Technology Solutions from $93.00 to $82.00 and set a “sector perform” rating on the stock in a report on Thursday, October 30th. TD Cowen reiterated a “hold” rating on shares of Cognizant Technology Solutions in a research note on Friday, January 9th. Susquehanna restated a “positive” rating and issued a $98.00 price objective on shares of Cognizant Technology Solutions in a research note on Friday, January 23rd. Finally, JPMorgan Chase & Co. increased their target price on shares of Cognizant Technology Solutions from $89.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, October 30th. Nine research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to MarketBeat, Cognizant Technology Solutions presently has an average rating of “Hold” and a consensus price target of $90.28.

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.