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

Cognizant Technology Solutions (NASDAQ:CTSH) announced its earnings results on Wednesday. The information technology service provider reported $1.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.03, FiscalAI reports. Cognizant Technology Solutions had a return on equity of 17.00% and a net margin of 10.20%.The business had revenue of $5.33 billion during the quarter, compared to analyst estimates of $5.31 billion. During the same quarter in the previous year, the business earned $1.21 earnings per share. The company’s revenue for the quarter 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 Stock Up 1.0%

CTSH traded up $0.76 during trading on Wednesday, reaching $75.26. 1,191,494 shares of the stock were exchanged, compared to its average volume of 4,652,359. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.36 and a current ratio of 2.36. Cognizant Technology Solutions has a twelve month low of $65.15 and a twelve month high of $90.82. The stock’s 50 day moving average price is $82.92 and its two-hundred day moving average price is $74.98. The stock has a market cap of $36.32 billion, a P/E ratio of 17.38, a price-to-earnings-growth ratio of 1.59 and a beta of 0.95.

Insider Activity

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Invesco Ltd. boosted its stake in Cognizant Technology Solutions by 8.6% in the third quarter. Invesco Ltd. now owns 12,534,198 shares of the information technology service provider’s stock valued at $840,669,000 after acquiring an additional 987,395 shares during the last quarter. Amundi grew its stake in Cognizant Technology Solutions by 9.2% during the third quarter. Amundi now owns 5,194,700 shares of the information technology service provider’s stock valued at $352,197,000 after acquiring an additional 439,356 shares in the last quarter. Hotchkis & Wiley Capital Management LLC boosted its stake in Cognizant Technology Solutions by 144.3% during the third quarter. Hotchkis & Wiley Capital Management LLC now owns 2,631,890 shares of the information technology service provider’s stock valued at $176,521,000 after buying an additional 1,554,648 shares during the period. Arrowstreet Capital Limited Partnership lifted its holdings in shares of Cognizant Technology Solutions by 11.7% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,139,937 shares of the information technology service provider’s stock worth $143,526,000 after acquiring an additional 224,239 shares during the last quarter. Finally, Voloridge Investment Management LLC grew its position in Cognizant Technology Solutions by 801.4% during the third quarter. Voloridge Investment Management LLC now owns 2,104,276 shares of the information technology service provider’s stock valued at $141,134,000 after acquiring an additional 1,870,834 shares during the last quarter. Hedge funds and other institutional investors own 92.44% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. UBS Group reiterated a “neutral” rating and issued a $82.00 price target (up from $78.00) on shares of Cognizant Technology Solutions in a research report on Monday, December 8th. JPMorgan Chase & Co. raised their price objective on shares of Cognizant Technology Solutions from $89.00 to $92.00 and gave the company an “overweight” rating in a research report on Thursday, October 30th. Mizuho set a $85.00 target price on Cognizant Technology Solutions in a research report on Thursday, October 30th. The Goldman Sachs Group restated a “neutral” rating and set a $84.00 target price on shares of Cognizant Technology Solutions in a report on Wednesday, October 29th. Finally, Royal Bank Of Canada lowered their price objective on Cognizant Technology Solutions from $93.00 to $82.00 and set a “sector perform” rating for the company in a research note on Thursday, October 30th. Nine investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $90.28.

Key Headlines Impacting 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.

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.