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

Cognizant Technology Solutions (NASDAQ:CTSH) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 5.560-5.700 for the period, compared to the consensus earnings per share estimate of 5.620. The company issued revenue guidance of $22.1 billion-$22.7 billion, compared to the consensus revenue estimate of $22.1 billion. Cognizant Technology Solutions also updated its Q1 2026 guidance to EPS.

Cognizant Technology Solutions Stock Performance

Shares of CTSH stock traded up $0.21 during trading hours on Thursday, reaching $76.92. 4,924,151 shares of the company’s stock were exchanged, compared to its average volume of 5,135,904. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.36 and a quick ratio of 2.36. The company’s 50 day moving average is $82.91 and its two-hundred day moving average is $74.99. The company has a market cap of $37.13 billion, a P/E ratio of 17.86, a price-to-earnings-growth ratio of 1.43 and a beta of 0.95. Cognizant Technology Solutions has a 1 year low of $65.15 and a 1 year high of $90.82.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.32 by $0.03. The firm had revenue of $5.33 billion during the quarter, compared to analysts’ expectations of $5.31 billion. Cognizant Technology Solutions had a return on equity of 17.00% and a net margin of 10.20%.Cognizant Technology Solutions’s revenue was up 4.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Equities research analysts anticipate that Cognizant Technology Solutions will post 4.98 EPS for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders of record on Wednesday, February 18th will be given a dividend of $0.33 per share. The ex-dividend date is Wednesday, February 18th. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. This represents a $1.32 annualized dividend and a yield of 1.7%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 28.77%.

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Susquehanna reiterated a “positive” rating and set a $98.00 price target on shares of Cognizant Technology Solutions in a research report on Friday, January 23rd. Citigroup reaffirmed a “neutral” rating and set a $86.00 price objective (up from $75.00) on shares of Cognizant Technology Solutions in a report on Thursday, January 22nd. UBS Group reissued a “neutral” rating and issued a $82.00 target price (up previously from $78.00) on shares of Cognizant Technology Solutions in a report on Monday, December 8th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Cognizant Technology Solutions in a research note on Monday, December 29th. Finally, Berenberg Bank set a $107.00 price objective on shares of Cognizant Technology Solutions and gave the stock a “buy” rating in a research report on Thursday, January 22nd. Nine investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat, Cognizant Technology Solutions presently has a consensus rating of “Hold” and a consensus target price of $90.78.

Insider Activity

In related news, CAO John Sunshin Kim sold 2,500 shares of the company’s stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $80.00, for a total transaction of $200,000.00. Following the transaction, the chief accounting officer owned 36,149 shares of the company’s stock, valued at approximately $2,891,920. This represents a 6.47% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Surya Gummadi sold 1,728 shares of Cognizant Technology Solutions stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total transaction of $143,527.68. Following the completion of the sale, the insider directly owned 25,641 shares of the company’s stock, valued at $2,129,741.46. The trade was a 6.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 29,434 shares of company stock valued at $2,460,809. 0.32% of the stock is owned by corporate insiders.

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: Cognizant beat Q4 estimates (EPS $1.35 vs. $1.32; revenue $5.33B) and raised FY2026 guidance (EPS 5.560–5.700; revenue growth 4.0%–6.5%), which supports the earnings outlook. Cognizant Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Strong bookings and large AI deals: trailing 12‑month bookings rose to $28.4B, management cited ~$500M “mega‑deals” and AI demand as drivers — a revenue pipeline signal for 2026. Q4 2025 Earnings Call Highlights: Record Bookings
• Positive Sentiment: New strategic partnership with Palantir to deliver AI modernization across healthcare and enterprise operations — supports Cognizant’s AI‑builder strategy and serviceable market expansion. Cognizant partners with Palantir
• Positive Sentiment: Analysts raised targets: RBC lifted its target to $88 (sector perform) and Morgan Stanley nudged its target to $82 (equal weight) — incremental validation of the outlook. RBC price target raise Morgan Stanley price target raise
• Positive Sentiment: Capital returns — company plans $1.6B for shareholders in 2026 (including $1B buybacks) and raised the quarterly dividend 6.5% to $0.33, supporting shareholder yield and valuation. Results and Capital Return Plan
• Neutral Sentiment: Management gave Q1 revenue guidance near $5.4B and reiterated FY revenue bands — reduces execution uncertainty but investors will watch margins and quarterly cadence for confirmation. Cognizant forecasts annual revenue above estimates
• Neutral Sentiment: Full earnings materials and transcript are available for due diligence — useful for investors assessing sustainability of bookings and margin guidance. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Several bullish writeups and analyst notes highlight valuation upside and margin expansion potential; useful background but not market moving on their own. Zacks: Why CTSH is a Strong Growth Stock
• Neutral Sentiment: Reported short‑interest increase appears to contain reporting errors (zeros/NaN); no clear evidence of a material short build at this time.
• Negative Sentiment: Insider sale disclosed — Director Surya Gummadi sold 1,728 shares at about $83.06. The sale is small relative to total holdings and the buyback plan but may attract short‑term attention. SEC Filing: Insider Sale

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in CTSH. Coldstream Capital Management Inc. lifted its holdings in shares of Cognizant Technology Solutions by 7.1% during the 3rd quarter. Coldstream Capital Management Inc. now owns 8,337 shares of the information technology service provider’s stock valued at $559,000 after acquiring an additional 550 shares in the last quarter. Danske Bank A S purchased a new position in Cognizant Technology Solutions in the third quarter valued at about $21,377,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Cognizant Technology Solutions during the third quarter worth about $53,000. Camelot Portfolios LLC boosted its position in shares of Cognizant Technology Solutions by 11.0% in the third quarter. Camelot Portfolios LLC now owns 13,059 shares of the information technology service provider’s stock worth $876,000 after buying an additional 1,297 shares during the period. Finally, Morningstar Investment Management LLC purchased a new stake in shares of Cognizant Technology Solutions in the third quarter worth about $5,229,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

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.