Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price Down 4.9% – Time to Sell?

Cognizant Technology Solutions Corporation (NASDAQ:CTSH)’s share price traded down 4.9% during mid-day trading on Tuesday. The stock traded as low as $66.25 and last traded at $65.94. Approximately 1,568,775 shares changed hands during trading, a decline of 80% from the average session volume of 7,919,090 shares. The stock had previously closed at $69.34.

More Cognizant Technology Solutions News

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

• Positive Sentiment: Third-quarter adjusted EPS was $1.49, above the $1.46 analyst consensus and up from $1.39 a year earlier. Revenue rose 4.6% year over year to $5.66 billion, slightly exceeding the $5.64 billion estimate. Cognizant Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Financial Services revenue increased 12%, adjusted operating margin expanded 30 basis points to 16.3%, and trailing 12-month bookings grew 4% to $28.7 billion. Cognizant also generated $1.58 billion in free cash flow, repurchased $258 million of stock and declared a $0.33 quarterly dividend. Cognizant Reports Third Quarter 2026 Results
• Positive Sentiment: Brokerages raised their price targets, with the average target reported at $68.04, suggesting potential upside from the stock’s recent trading level. Cognizant Gets Price Target Bump from Morgan Stanley
• Neutral Sentiment: Cognizant revised its 2026 constant-currency revenue-growth forecast to 4.0%–4.4% and expects adjusted EPS of $5.72–$5.79, representing 8%–10% growth. The outlook remains positive but indicates a relatively measured growth profile.
• Negative Sentiment: Third-quarter bookings declined 7% year over year, while GAAP operating margin fell 60 basis points to 15.4%. Those figures likely overshadowed the earnings beat and raised concerns about demand momentum and profitability.
• Negative Sentiment: Reports also noted that Cognizant insiders recorded nine open-market sales and no purchases during the past six months, a potentially unfavorable sentiment signal. Cognizant Q3 Revenue Rises 4.6%

Analysts Set New Price Targets

Several research firms recently weighed in on CTSH. Wedbush reaffirmed an “outperform” rating and set a $70.00 target price on shares of Cognizant Technology Solutions in a research note on Friday, October 9th. HSBC dropped 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 report on Wednesday, July 1st. Weiss Ratings raised Cognizant Technology Solutions from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, October 19th. Wells Fargo & Company boosted their target price on Cognizant Technology Solutions from $67.00 to $77.00 and gave the stock an “overweight” rating in a research report on Monday. Finally, Daiwa Securities Group increased their price target on Cognizant Technology Solutions from $42.00 to $60.00 and gave the company a “neutral” rating in a research note on Friday, September 25th. Ten analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $68.04.

Cognizant Technology Solutions Stock Down 1.9%

The company has a fifty day moving average of $62.09 and a two-hundred day moving average of $59.50. The company has a market cap of $29.31 billion, a PE ratio of 13.90, a price-to-earnings-growth ratio of 1.32 and a beta of 0.86. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.18 and a current ratio of 2.18.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Thursday, October 29th. The information technology service provider reported $1.49 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.46 by $0.03. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%. The company had revenue of $5.66 billion during the quarter, compared to the consensus estimate of $5.64 billion. During the same period last year, the company earned $1.39 earnings per share. Cognizant Technology Solutions’s revenue was up 4.6% on a year-over-year basis. As a group, analysts anticipate that Cognizant Technology Solutions Corporation will post 5.74 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Cognizant Technology Solutions

Hedge funds have recently added to or reduced their stakes in the company. Marquette Asset Management LLC increased its stake in shares of Cognizant Technology Solutions by 183.9% during the third quarter. Marquette Asset Management LLC now owns 545 shares of the information technology service provider’s stock valued at $31,000 after buying an additional 353 shares during the period. Signature Equity Partners LLC raised its holdings in shares of Cognizant Technology Solutions by 102.4% in the first quarter. Signature Equity Partners LLC now owns 599 shares of the information technology service provider’s stock valued at $37,000 after acquiring an additional 303 shares in the last quarter. Pension & Wealth Management Advisors Inc. purchased a new stake in Cognizant Technology Solutions in the third quarter worth about $35,000. Alpine Bank Wealth Management purchased a new stake in Cognizant Technology Solutions in the third quarter worth about $38,000. Finally, SJS Investment Consulting Inc. grew its holdings in Cognizant Technology Solutions by 1,580.0% during the 1st quarter. SJS Investment Consulting Inc. now owns 840 shares of the information technology service provider’s stock worth $52,000 after acquiring an additional 790 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

Cognizant Technology Solutions Company Profile

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.