Morgan Stanley Cuts Cognizant Technology Solutions (NASDAQ:CTSH) Price Target to $63.00

Cognizant Technology Solutions (NASDAQ:CTSH) had its price target decreased by Morgan Stanley from $70.00 to $63.00 in a report published on Thursday, Marketbeat.com reports. Morgan Stanley currently has an equal weight rating on the information technology service provider’s stock.

CTSH has been the subject of a number of other research reports. Guggenheim dropped their price target on Cognizant Technology Solutions from $85.00 to $80.00 and set a “buy” rating for the company in a research note on Thursday. Jefferies Financial Group dropped their price target on Cognizant Technology Solutions from $90.00 to $80.00 and set a “buy” rating for the company in a research note on Tuesday, April 21st. TD Cowen reiterated a “hold” rating and issued a $62.00 price objective (down from $71.00) on shares of Cognizant Technology Solutions in a report on Thursday. Wells Fargo & Company decreased their price objective on Cognizant Technology Solutions from $98.00 to $83.00 and set an “overweight” rating for the company in a report on Thursday. Finally, JPMorgan Chase & Co. decreased their price objective on Cognizant Technology Solutions from $92.00 to $74.00 and set an “overweight” rating for the company in a report on Tuesday, April 28th. Ten analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $77.15.

Cognizant Technology Solutions Stock Performance

Shares of CTSH stock opened at $52.43 on Thursday. The stock has a fifty day moving average of $60.88 and a 200 day moving average of $71.62. Cognizant Technology Solutions has a 52 week low of $52.28 and a 52 week high of $87.03. The firm has a market capitalization of $25.07 billion, a price-to-earnings ratio of 11.40, a PEG ratio of 1.14 and a beta of 0.81. The company has a quick ratio of 2.14, a current ratio of 2.23 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, topping analysts’ consensus estimates of $1.33 by $0.07. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The company had revenue of $5.41 billion during the quarter, compared to analyst estimates of $5.41 billion. During the same quarter last year, the firm posted $1.23 earnings per share. The firm’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. As a group, research analysts expect that Cognizant Technology Solutions will post 5.68 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Monday, May 18th will be issued a dividend of $0.33 per share. The ex-dividend date is Monday, May 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.5%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is presently 28.70%.

Insider Buying and Selling at Cognizant Technology Solutions

In other news, insider Surya Gummadi sold 1,728 shares of the firm’s stock in a transaction 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 transaction, the insider directly owned 25,641 shares in the company, valued at $2,129,741.46. This trade represents a 6.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.32% of the stock is owned by insiders.

Hedge Funds Weigh In On Cognizant Technology Solutions

Several institutional investors and hedge funds have recently modified their holdings of CTSH. Norges Bank bought a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at $690,959,000. GQG Partners LLC bought a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at $673,651,000. CIBC Bancorp USA Inc. bought a new position in shares of Cognizant Technology Solutions during the third quarter valued at $201,834,000. Cibc World Markets Corp bought a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at $234,671,000. Finally, Pzena Investment Management LLC increased its holdings in shares of Cognizant Technology Solutions by 14.9% during the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock valued at $1,243,096,000 after acquiring an additional 2,633,683 shares in the last quarter. 92.44% of the stock is currently owned by institutional investors.

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: Q1 EPS beat and margin outlook lift confidence — Cognizant reported an EPS beat for Q1 and raised its 2026 margin outlook, which supports near-term earnings visibility. Cognizant Q1 Earnings Beat
• Positive Sentiment: Acquisition adds scale in contact-center services — Cognizant agreed to buy Astreya for about $600M, expanding its CX and cloud services footprint. This is strategic revenue and capability growth. Cognizant to buy Astreya
• Positive Sentiment: Selective analyst upgrades/raises remain — A few firms (e.g., Nomura, Susquehanna) reaffirm buy/positive views or raised targets, indicating some analysts see material upside despite broader cuts. Nomura raises PT to $93
• Neutral Sentiment: Zacks ranks CTSH as a top growth stock — Useful context for growth-oriented investors, but a style score is not an immediate catalyst. CTSH is a Top-Ranked Growth Stock
• Neutral Sentiment: Brand/partnership news supports long-term positioning — Becoming Aston Martin Aramco F1 Team’s Global AI Services Partner raises profile but is more strategic/PR than near-term revenue. Cognizant named AMF1 Global AI Services Partner
• Negative Sentiment: Broad wave of price‑target cuts from major analysts — Multiple firms trimmed targets (Evercore, BMO, HSBC, JPMorgan, Morgan Stanley, Wedbush, Wells Fargo, Guggenheim), weighing on the stock by reducing near-term upside expectations. Evercore cuts PT to $70 BMO cuts PT to $63 JPMorgan cuts PT to $74
• Negative Sentiment: Project Leap restructuring flagged as a risk — Analysts and risk monitors highlight Project Leap’s cost and execution risks, which could pressure productivity and margins if issues persist. Project Leap raises risks
• Negative Sentiment: Top-line softness and margin strain concerns — While EPS beat, revenue missed and management flagged margin pressure in the call, which limits optimism about a quick re-rating. Earnings call: bookings shine amid margin strain

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.