Cognizant Technology Solutions (NASDAQ:CTSH) Given New $61.00 Price Target at Wells Fargo & Company

Cognizant Technology Solutions (NASDAQ:CTSH) had its target price cut by Wells Fargo & Company from $83.00 to $61.00 in a research report released on Friday morning, MarketBeat reports. They currently have an overweight rating on the information technology service provider’s stock.

Several other analysts have also recently issued reports on the company. Weiss Ratings cut Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, May 13th. Nomura lowered their price target on Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating for the company in a research report on Wednesday, July 1st. Dbs Bank dropped their price objective on Cognizant Technology Solutions from $80.00 to $66.00 in a report on Thursday, May 7th. TD Cowen cut their price objective on Cognizant Technology Solutions from $62.00 to $47.00 and set a “hold” rating on the stock in a research report on Friday, June 26th. Finally, Wedbush raised Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and boosted their target price for the company from $56.00 to $70.00 in a research note on Monday, June 8th. Eleven investment analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $64.70.

Cognizant Technology Solutions Trading Down 1.9%

NASDAQ:CTSH traded down $0.83 during midday trading on Friday, reaching $42.57. 6,250,900 shares of the stock traded hands, compared to its average volume of 14,306,458. The stock has a market capitalization of $20.17 billion, a P/E ratio of 9.25, a PEG ratio of 0.91 and a beta of 0.87. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23. The company has a fifty day moving average of $48.26 and a 200 day moving average of $62.49. Cognizant Technology Solutions has a 12 month low of $37.08 and a 12 month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The business had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. During the same quarter last year, the firm earned $1.23 EPS. The company’s revenue was up 5.8% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, research analysts predict that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Cognizant Technology Solutions announced that its Board of Directors has approved a stock buyback program on Monday, May 18th that authorizes the company to repurchase $2.00 billion in shares. This repurchase authorization authorizes the information technology service provider to repurchase up to 9% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, May 27th. Investors of record on Monday, May 18th were paid a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date of this dividend was Monday, May 18th. Cognizant Technology Solutions’s dividend payout ratio is presently 28.70%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Norges Bank bought a new position in shares of Cognizant Technology Solutions in the 4th quarter worth approximately $690,959,000. GQG Partners LLC bought a new stake in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $673,651,000. Assenagon Asset Management S.A. grew its stake in Cognizant Technology Solutions by 925.5% in the second quarter. Assenagon Asset Management S.A. now owns 3,652,358 shares of the information technology service provider’s stock worth $141,456,000 after purchasing an additional 3,296,205 shares during the period. CIBC Bancorp USA Inc. purchased a new stake in Cognizant Technology Solutions in the third quarter worth $201,834,000. Finally, Cibc World Markets Corp bought a new position in Cognizant Technology Solutions in the fourth quarter worth $234,671,000. Hedge funds and other institutional investors 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: Cognizant announced it will scale its Frontier workforce to 5,000 Frontier Certified Engineers and 10,000 Frontier Business Operators, reinforcing its enterprise AI strategy and signaling a push to convert AI spending into client revenue. Cognizant to scale to 5,000 Frontier Certified Engineers and 10,000 Frontier Business Operators
• Positive Sentiment: The company also said it is strengthening its AI strategy through a Google-related AI deal, which investors may see as validation of Cognizant’s enterprise AI positioning. As Cognizant Links Up with Google on AI Deal, Here’s How to Play CTSH Stock Now
• Positive Sentiment: Cognizant was named to TIME’s America’s Best Companies 2026 list, which supports its brand image around employee satisfaction, financial performance, and sustainability transparency. Cognizant named in TIME America’s Best Companies 2026 List
• Neutral Sentiment: Wells Fargo and Robert W. Baird both cut their price targets on CTSH, though both maintained constructive overall ratings, reflecting a more cautious near-term view on the stock.
• Neutral Sentiment: A Zacks note said Cognizant’s enterprise AI efforts are progressing, but weak demand, competition, and margin pressure remain concerns for the outlook. CTSH Strengthens Enterprise AI Strategy With Frontier Workforce
• Neutral Sentiment: Cognizant also disclosed a stockholder derivative action settlement notice, which appears to be a legal/administrative update rather than a major new operational development. Summary Notice of Pendency and Proposed Settlement of Stockholder Derivative Action
• Negative Sentiment: Market sentiment has also turned less favorable toward tech stocks broadly as investors rotate out of recent winners, which can weigh on shares like CTSH. Selling Winners, Buying Losers’: Tech Stocks Drop as Energy Jumps to Start H2

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.