Principal Financial Group Inc. Trims Holdings in Cognizant Technology Solutions Corporation $CTSH

Principal Financial Group Inc. decreased its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) by 5.5% during the third quarter, Holdings Channel.com reports. The fund owned 608,630 shares of the information technology service provider’s stock after selling 35,663 shares during the quarter. Principal Financial Group Inc.’s holdings in Cognizant Technology Solutions were worth $40,821,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Unison Advisors LLC lifted its stake in shares of Cognizant Technology Solutions by 0.5% during the 2nd quarter. Unison Advisors LLC now owns 29,843 shares of the information technology service provider’s stock valued at $2,329,000 after buying an additional 135 shares in the last quarter. Security National Bank of SO Dak raised its holdings in Cognizant Technology Solutions by 0.6% during the second quarter. Security National Bank of SO Dak now owns 24,635 shares of the information technology service provider’s stock valued at $1,922,000 after acquiring an additional 150 shares during the period. NewSquare Capital LLC raised its holdings in Cognizant Technology Solutions by 71.8% during the second quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider’s stock valued at $29,000 after acquiring an additional 153 shares during the period. STF Management LP lifted its position in shares of Cognizant Technology Solutions by 2.1% in the second quarter. STF Management LP now owns 7,534 shares of the information technology service provider’s stock valued at $588,000 after acquiring an additional 158 shares in the last quarter. Finally, Uncommon Cents Investing LLC grew its position in shares of Cognizant Technology Solutions by 2.0% during the third quarter. Uncommon Cents Investing LLC now owns 8,400 shares of the information technology service provider’s stock worth $563,000 after purchasing an additional 165 shares in the last quarter. 92.44% of the stock is owned by hedge funds and other institutional investors.

Key Cognizant Technology Solutions News

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

• Positive Sentiment: Q4 beat and raised FY‑2026 guidance — Cognizant reported Q4 revenue of ~$5.33B and EPS $1.35, topping estimates, and issued FY‑2026 EPS guidance of 5.560–5.700, lifting market confidence. Read More.
• Positive Sentiment: Record bookings and large AI deals — Management highlighted trailing 12‑month bookings growth and ~28 large deals in 2025, calling out roughly $500M of “mega‑deals” and AI demand as growth drivers. Read More.
• Positive Sentiment: Strategic AI partnership — Cognizant partnered with Palantir to combine Palantir Foundry/AIP with Cognizant’s healthcare and operations platforms to accelerate scalable, secure AI deployments across clients. This enhances the company’s AI go‑to‑market credibility. Read More.
• Positive Sentiment: Capital returns & dividend raise — Cognizant signaled $1.6B in shareholder returns for 2026 (including ~$1B buybacks) and raised the quarterly dividend 6.5% to $0.33, supporting valuation and return‑of‑cash narratives. Read More.
• Neutral Sentiment: Analyst price‑target moves — RBC and Morgan Stanley nudged targets higher (RBC to $88, Morgan Stanley to $82), reflecting the improved outlook but largely keeping neutral/equal‑weight stances. Read More. Read More.
• Neutral Sentiment: Earnings materials & transcript available — Investors should read the call transcript and slides for detail on margin assumptions, vertical mix and sustainability of bookings-driven growth. Read More.
• Neutral Sentiment: Bull case writeups circulated — Several bullish notes on valuation and margin upside surfaced; useful for conviction work but not by themselves market‑moving. Read More.
• Negative Sentiment: Insider sale disclosed — A director sold 1,728 shares at ~\$83; size is small versus total holdings and the announced buyback but may attract short‑term attention. Read More.

Cognizant Technology Solutions Trading Up 0.2%

Shares of NASDAQ CTSH opened at $76.84 on Friday. The stock has a market capitalization of $37.09 billion, a P/E ratio of 16.89, a PEG ratio of 1.46 and a beta of 0.95. Cognizant Technology Solutions Corporation has a 1-year low of $65.15 and a 1-year high of $90.82. The business’s 50 day moving average is $82.91 and its two-hundred day moving average is $75.00. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.34 and a quick ratio of 2.36.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share for the quarter, beating the consensus estimate of $1.32 by $0.03. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.The firm had revenue of $5.33 billion for the quarter, compared to the consensus estimate of $5.31 billion. During the same quarter in the previous year, the company posted $1.21 EPS. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. As a group, research analysts expect that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th will be issued a $0.33 dividend. This is a boost from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. The ex-dividend date is Wednesday, February 18th. This represents a $1.32 annualized dividend and a dividend yield of 1.7%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is 29.01%.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on CTSH. William Blair raised Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a report on Friday, November 21st. Guggenheim restated a “buy” rating and set a $100.00 target price (up previously from $95.00) on shares of Cognizant Technology Solutions in a research report on Wednesday, January 28th. Berenberg Bank set a $107.00 price target on shares of Cognizant Technology Solutions and gave the company a “buy” rating in a report on Thursday, January 22nd. Citigroup reissued a “neutral” rating and set a $86.00 price objective (up previously from $75.00) on shares of Cognizant Technology Solutions in a report on Thursday, January 22nd. Finally, Royal Bank Of Canada raised their price objective on Cognizant Technology Solutions from $82.00 to $88.00 and gave the company a “sector perform” rating in a research report on Thursday. Nine investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $90.78.

Insider Activity

In other news, insider Surya Gummadi sold 1,728 shares of the stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the sale, the insider directly owned 25,641 shares in the company, valued at approximately $2,129,741.46. This represents a 6.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Michael Patsalos-Fox sold 7,000 shares of the business’s stock in a transaction on Thursday, December 11th. The shares were sold at an average price of $83.52, for a total value of $584,640.00. Following the transaction, the director owned 47,729 shares of the company’s stock, valued at approximately $3,986,326.08. The trade was a 12.79% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 29,434 shares of company stock valued at $2,460,809. 0.32% of the stock is currently owned by company insiders.

Cognizant Technology Solutions Company Profile

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.