Cognizant Technology Solutions (NASDAQ:CTSH) Price Target Raised to $70.00

Cognizant Technology Solutions (NASDAQ:CTSH) had its price target lifted by Morgan Stanley from $51.00 to $70.00 in a research report released on Tuesday,Benzinga reports. The brokerage currently has an equal weight rating on the information technology service provider’s stock.

Other equities research analysts have also issued research reports about the company. Citigroup reiterated a “neutral” rating on shares of Cognizant Technology Solutions in a research report on Monday, October 19th. Wells Fargo & Company raised their price target on shares of Cognizant Technology Solutions from $67.00 to $77.00 and gave the stock an “overweight” rating in a research report on Monday. Royal Bank Of Canada set a $55.00 price objective on shares of Cognizant Technology Solutions in a research note on Friday, July 24th. TD Cowen reaffirmed a “hold” rating and issued a $60.00 price objective (up from $54.00) on shares of Cognizant Technology Solutions in a report on Tuesday, October 13th. Finally, Guggenheim reiterated a “buy” rating and issued a $65.00 price objective (down from $80.00) on shares of Cognizant Technology Solutions in a research note on Monday, July 27th. Ten analysts have rated the stock with a Buy rating and fourteen have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $68.04.

Cognizant Technology Solutions Trading Down 5.8%

CTSH opened at $62.52 on Tuesday. The company has a quick ratio of 2.18, a current ratio of 2.18 and a debt-to-equity ratio of 0.11. The stock’s fifty day moving average is $62.12 and its two-hundred day moving average is $59.39. The company has a market capitalization of $28.16 billion, a P/E ratio of 12.04, a PEG ratio of 1.24 and a beta of 0.86. Cognizant Technology Solutions has a 52 week low of $37.08 and a 52 week high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Thursday, October 29th. The information technology service provider reported $1.49 earnings per share for the quarter, topping analysts’ consensus estimates of $1.46 by $0.03. Cognizant Technology Solutions had a return on equity of 17.70% and a net margin of 10.26%. The firm had revenue of $5.66 billion during the quarter, compared to analysts’ expectations of $5.64 billion. During the same period in the prior year, the business posted $1.39 EPS. The firm’s quarterly revenue was up 4.6% on a year-over-year basis. Analysts forecast that Cognizant Technology Solutions will post 5.74 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Friday, November 13th will be given a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend is Friday, November 13th. Cognizant Technology Solutions’s payout ratio is presently 28.39%.

Hedge Funds Weigh In On Cognizant Technology Solutions

Large investors have recently made changes to their positions in the stock. Pzena Investment Management LLC lifted its position in shares of Cognizant Technology Solutions by 14.9% in the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock worth $1,243,096,000 after purchasing an additional 2,633,683 shares in the last quarter. Dimensional Fund Advisors LP lifted its position in Cognizant Technology Solutions by 3.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 6,404,918 shares of the information technology service provider’s stock worth $392,947,000 after buying an additional 222,819 shares in the last quarter. Amundi lifted its position in Cognizant Technology Solutions by 9.2% during the 1st quarter. Amundi now owns 6,177,881 shares of the information technology service provider’s stock worth $379,013,000 after buying an additional 520,532 shares in the last quarter. Hsbc Holdings PLC boosted its stake in shares of Cognizant Technology Solutions by 27.2% during the 1st quarter. Hsbc Holdings PLC now owns 3,471,681 shares of the information technology service provider’s stock worth $213,004,000 after buying an additional 742,466 shares during the last quarter. Finally, Artemis Investment Management LLP boosted its stake in shares of Cognizant Technology Solutions by 289.6% during the 3rd quarter. Artemis Investment Management LLP now owns 2,905,584 shares of the information technology service provider’s stock worth $166,897,000 after buying an additional 2,159,704 shares during the last quarter. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Key Cognizant Technology Solutions News

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

• Positive Sentiment: Quarterly results exceeded expectations. Cognizant reported adjusted EPS of $1.49 versus the $1.46 consensus, while revenue of $5.66 billion topped estimates of $5.64 billion and increased 4.6% year over year. Cognizant Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Margins, cash flow and shareholder returns provided support. Adjusted operating margin expanded to 16.3%, free cash flow reached $1.582 billion, and Cognizant repurchased approximately $258 million of stock. The company also declared a quarterly dividend of $0.33 per share, equivalent to an annualized $1.32 payout and a roughly 2.1% yield. Cognizant Reports Third Quarter 2026 Results
• Neutral Sentiment: Full-year guidance still calls for growth, but expectations were reset. Cognizant now expects 2026 constant-currency revenue growth of 4.0% to 4.4%, adjusted operating margin of approximately 16.1% and adjusted EPS of $5.72 to $5.79. Brokerages’ average price target was reported at $68.04, potentially offering valuation support, although targets do not guarantee future performance. Cognizant Average Price Target
• Negative Sentiment: Bookings and organic growth raised the main concerns. Third-quarter bookings fell 7% year over year, while acquisitions and resold third-party products contributed roughly four percentage points of reported revenue growth. That suggests the core business grew more slowly than the headline 4.6% increase. Analysts also noted that per-share gains were aided by buybacks rather than stronger profitability, intensifying concerns about demand momentum. Cognizant Bookings Drop as Growth Slows

About Cognizant Technology Solutions

Cognizant Technology Solutions Corporation is a global information technology services and consulting company that helps organizations modernize their technology infrastructure, operations and customer experiences. The company serves businesses across industries including financial services, healthcare, life sciences, manufacturing, retail and communications.

Cognizant’s services include consulting, application development and modernization, cloud computing, data and artificial intelligence, digital engineering, cybersecurity and business process services.