Cognizant Technology Solutions Corporation $CTSH Shares Sold by Royal Bank of Canada

Royal Bank of Canada reduced its position in shares of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) by 36.8% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 938,180 shares of the information technology service provider’s stock after selling 545,601 shares during the period. Royal Bank of Canada’s holdings in Cognizant Technology Solutions were worth $57,556,000 as of its most recent SEC filing.

A number of other hedge funds have also recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at approximately $690,959,000. GQG Partners LLC purchased a new position in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $673,651,000. Cibc World Markets Corp purchased a new position in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $234,671,000. Pzena Investment Management LLC lifted its holdings in shares of Cognizant Technology Solutions by 14.9% in the 1st 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 buying an additional 2,633,683 shares during the period. Finally, FIL Ltd boosted its stake in shares of Cognizant Technology Solutions by 46.6% in the fourth quarter. FIL Ltd now owns 6,680,508 shares of the information technology service provider’s stock valued at $554,482,000 after buying an additional 2,122,600 shares in the last quarter. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Stock Performance

Shares of CTSH stock opened at $55.35 on Friday. The stock has a fifty day moving average price of $47.22 and a 200 day moving average price of $58.56. The stock has a market cap of $26.23 billion, a PE ratio of 11.90, a P/E/G ratio of 1.21 and a beta of 0.87. Cognizant Technology Solutions Corporation has a 1 year low of $37.08 and a 1 year high of $87.03. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.23 and a current ratio of 2.18.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share for the quarter, missing the consensus estimate 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 firm had revenue of $5.48 billion during the quarter, compared to analyst estimates of $5.48 billion. During the same period last year, the company posted $1.31 EPS. The firm’s revenue for the quarter 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. Sell-side analysts forecast that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current fiscal year.

Cognizant Technology Solutions Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Tuesday, August 18th will be given a $0.33 dividend. The ex-dividend date is Tuesday, August 18th. This represents a $1.32 annualized dividend and a dividend yield of 2.4%. Cognizant Technology Solutions’s payout ratio is currently 28.39%.

Cognizant Technology Solutions declared that its Board of Directors has initiated a share repurchase program on Monday, May 18th that allows the company to buyback $2.00 billion in shares. This buyback authorization allows the information technology service provider to buy up to 9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. Deutsche Bank Aktiengesellschaft set a $55.00 price objective on Cognizant Technology Solutions in a report on Friday, July 10th. HSBC reduced their target price on Cognizant Technology Solutions from $80.00 to $68.00 and set a “buy” rating for the company in a report on Wednesday, July 1st. Guggenheim restated a “buy” rating and set a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a research report on Monday, July 27th. Citigroup reiterated a “neutral” rating and issued a $60.00 price target (up from $45.00) on shares of Cognizant Technology Solutions in a report on Thursday. Finally, BMO Capital Markets reduced their price objective on shares of Cognizant Technology Solutions from $83.00 to $63.00 in a research note on Thursday, April 30th. Ten research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $63.17.

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: Broader AI strategy: Cognizant is positioning itself as an implementation and consulting partner across multiple leading AI models, including Anthropic and OpenAI, reducing the risk of relying on a single platform. The company reported more than 8,000 AI engagements and is emphasizing AI-led services, platforms and large deals. Anthropic Is Only Part of the Story. Cognizant Has a Much Bigger AI Plan
• Positive Sentiment: Analyst support increased: Wells Fargo raised its price target from $61 to $67 and maintained an Overweight rating, citing Cognizant’s differentiated AI strategy. Morgan Stanley also increased its target, while William Blair initiated a Buy recommendation based on margin expansion, Financial Services growth and AI-driven demand. Cognizant in focus as Morgan Stanley ups price target
• Positive Sentiment: Revenue and demand trends: Second-quarter revenue rose 4.5% year over year to $5.48 billion, matching or exceeding expectations, with Financial Services described as a key growth area. Investors also continue to view CTSH as an attractively valued momentum stock, with earnings growth and AI opportunities supporting the long-term case. Cognizant Q2 Earnings Results
• Positive Sentiment: Shareholder return: Cognizant declared a quarterly dividend of $0.33 per share, representing an annualized yield of approximately 2.4%, adding support for income-focused investors.
• Neutral Sentiment: Mixed quarterly results: Adjusted EPS of $1.37 narrowly missed the $1.38 consensus, although revenue met expectations and exceeded the prior-year result. Management’s full-year EPS guidance is $5.70–$5.82, while reports indicate the 2026 sales outlook was trimmed. Cognizant Q2 2026 Earnings Call Summary
• Negative Sentiment: Valuation caution: TD Cowen raised its target from $47 to $54 but retained a Hold rating, leaving its target below the recent trading level. Higher interest costs also pressured quarterly earnings.

Cognizant Technology Solutions 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.