Cognizant Technology Solutions Corporation (CTSH) To Go Ex-Dividend on August 18th

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) declared a quarterly dividend on Wednesday, July 29th. Stockholders of record on Tuesday, August 18th will be paid a dividend of 0.33 per share by the information technology service provider on Tuesday, August 25th. This represents a c) annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, August 18th.

Cognizant Technology Solutions has raised its dividend by an average of 0.1%per year over the last three years and has increased its dividend every year for the last 6 years. Cognizant Technology Solutions has a payout ratio of 24.3% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Cognizant Technology Solutions to earn $6.19 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 21.3%.

Cognizant Technology Solutions Stock Performance

CTSH opened at $53.90 on Friday. The company has a current ratio of 2.18, a quick ratio of 2.23 and a debt-to-equity ratio of 0.11. The company has a market cap of $25.54 billion, a price-to-earnings ratio of 11.59, a PEG ratio of 1.22 and a beta of 0.87. The company’s 50 day moving average is $47.16 and its 200 day moving average is $58.58. Cognizant Technology Solutions has a 12-month low of $37.08 and a 12-month high of $87.03.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The business had revenue of $5.48 billion for the quarter, compared to analysts’ expectations of $5.48 billion. During the same period in the prior year, the company posted $1.31 earnings per share. The firm’s quarterly revenue was up 4.5% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. On average, equities research analysts predict that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Cognizant Technology Solutions declared that its Board of Directors has authorized a stock buyback program on Monday, May 18th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the information technology service provider to reacquire up to 9% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.

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.