Cognizant Technology Solutions (NASDAQ:CTSH) Releases FY 2026 Earnings Guidance

Cognizant Technology Solutions (NASDAQ:CTSH) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 5.700-5.820 for the period, compared to the consensus EPS estimate of 5.690. The company issued revenue guidance of $22.0 billion-$22.4 billion, compared to the consensus revenue estimate of $22.3 billion. Cognizant Technology Solutions also updated its Q3 2026 guidance to EPS.

Cognizant Technology Solutions Trading Up 6.9%

Shares of Cognizant Technology Solutions stock opened at $50.31 on Wednesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. Cognizant Technology Solutions has a 1 year low of $37.08 and a 1 year high of $87.03. The company has a market capitalization of $23.84 billion, a P/E ratio of 10.94, a P/E/G ratio of 1.03 and a beta of 0.87. The business has a 50 day moving average price of $47.04 and a 200 day moving average price of $59.01.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The firm had revenue of $5.41 billion for the quarter, compared to analyst estimates of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.Cognizant Technology Solutions’s revenue was up 5.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.23 EPS. Sell-side analysts anticipate that Cognizant Technology Solutions will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions declared that its board has authorized a share 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 shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

CTSH has been the topic of a number of analyst reports. Citigroup decreased their price objective on Cognizant Technology Solutions from $55.00 to $45.00 and set a “neutral” rating on the stock in a research note on Monday, July 13th. Royal Bank Of Canada set a $55.00 target price on shares of Cognizant Technology Solutions in a research note on Friday. Wedbush upgraded shares of Cognizant Technology Solutions from a “neutral” rating to an “outperform” rating and upped their target price for the company from $56.00 to $70.00 in a report on Monday, June 8th. Jefferies Financial Group decreased their price target on shares of Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating on the stock in a research note on Monday, May 4th. Finally, Nomura lowered their price target on shares of Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating for the company in a report on Wednesday, July 1st. Ten equities research analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat.com, Cognizant Technology Solutions currently has an average rating of “Hold” and a consensus price target of $61.35.

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: Expanded Anthropic partnership boosts AI growth expectations. Cognizant became one of Anthropic’s Global Premier Partners and will embed Claude across its industry platforms, engineering tools and client projects. The companies are targeting broader production use of AI in sectors including manufacturing, life sciences and insurance, supporting expectations for new consulting and implementation revenue. Cognizant and Anthropic expand partnership article
• Positive Sentiment: New EMEA AI unit aims to convert pilots into recurring enterprise work. The dedicated organization will combine advisory, engineering and delivery capabilities to help European, Middle Eastern and African clients build and operate agentic AI systems. Its platform-independent approach could broaden Cognizant’s addressable market and reinforce its AI Builder strategy. Cognizant launches EMEA AI unit article
• Positive Sentiment: Five-year Andover Companies contract adds evidence of commercial traction. The insurance group selected Cognizant to modernize core and portal systems, unify data and prepare for responsible AI use in underwriting and claims. The long-term engagement provides potential revenue visibility and a reference customer for Cognizant’s insurance and AI capabilities. Andover Companies selects Cognizant article
• Neutral Sentiment: Upcoming quarterly results are the next major catalyst. Analysts expect Cognizant’s results to benefit from bookings, AI demand and acquisition contributions, but investors will look for confirmation that those factors are translating into revenue growth and updated guidance. Cognizant Q2 earnings preview
• Negative Sentiment: Macro and discretionary-spending risks remain. Weak client demand in discretionary areas and broader economic uncertainty could restrain traditional IT-services spending, potentially offsetting some of the expected AI-driven growth.

Institutional Trading of Cognizant Technology Solutions

A number of hedge funds have recently added to or reduced their stakes in the business. Compound Planning Inc. increased its stake in shares of Cognizant Technology Solutions by 32.5% during the 4th quarter. Compound Planning Inc. now owns 5,695 shares of the information technology service provider’s stock valued at $473,000 after acquiring an additional 1,397 shares during the last quarter. Corient Private Wealth LLC lifted its holdings in shares of Cognizant Technology Solutions by 191.6% during the 4th quarter. Corient Private Wealth LLC now owns 218,371 shares of the information technology service provider’s stock worth $18,125,000 after acquiring an additional 143,488 shares during the period. Mercer Global Advisors Inc. ADV boosted its position in shares of Cognizant Technology Solutions by 1.7% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 349,752 shares of the information technology service provider’s stock worth $29,030,000 after acquiring an additional 5,788 shares during the last quarter. State of Tennessee Department of Treasury boosted its position in shares of Cognizant Technology Solutions by 4.6% in the fourth quarter. State of Tennessee Department of Treasury now owns 161,542 shares of the information technology service provider’s stock worth $13,256,000 after acquiring an additional 7,122 shares during the last quarter. Finally, EP Wealth Advisors LLC purchased a new stake in Cognizant Technology Solutions in the fourth quarter valued at approximately $779,000. 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.