Cognizant Technology Solutions (NASDAQ:CTSH) Price Target Raised to $88.00

Cognizant Technology Solutions (NASDAQ:CTSH) had its price target boosted by Royal Bank Of Canada from $82.00 to $88.00 in a research report released on Thursday, Marketbeat Ratings reports. Royal Bank Of Canada currently has a sector perform rating on the information technology service provider’s stock.

Several other equities analysts have also recently commented on the stock. Guggenheim reissued a “buy” rating and set a $100.00 target price (up previously from $95.00) on shares of Cognizant Technology Solutions in a research note on Wednesday, January 28th. William Blair raised Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a report on Friday, November 21st. BMO Capital Markets reaffirmed a “market perform” rating and set a $96.00 price target on shares of Cognizant Technology Solutions in a research note on Thursday, January 29th. JPMorgan Chase & Co. boosted their price objective on Cognizant Technology Solutions from $89.00 to $92.00 and gave the stock an “overweight” rating in a research note on Thursday, October 30th. Finally, TD Cowen reaffirmed a “hold” rating and set a $85.00 target price (up previously from $84.00) on shares of Cognizant Technology Solutions in a research note on Thursday. Ten research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $90.78.

Cognizant Technology Solutions Price Performance

Shares of CTSH stock opened at $77.08 on Thursday. The firm has a fifty day simple moving average of $82.89 and a 200-day simple moving average of $75.00. The company has a market capitalization of $37.20 billion, a PE ratio of 16.94, a price-to-earnings-growth ratio of 1.47 and a beta of 0.95. Cognizant Technology Solutions has a twelve month low of $65.15 and a twelve month high of $90.82. The company has a current ratio of 2.34, a quick ratio of 2.36 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data 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. The firm had revenue of $5.33 billion during the quarter, compared to analyst estimates of $5.31 billion. Cognizant Technology Solutions had a return on equity of 17.17% and a net margin of 10.56%.Cognizant Technology Solutions’s quarterly revenue was up 4.9% on a year-over-year basis. During the same period in the previous year, the company earned $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Equities research analysts anticipate that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Cognizant Technology Solutions Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, February 26th. Shareholders 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 of this dividend is Wednesday, February 18th. This represents a $1.32 dividend on an annualized basis and a yield of 1.7%. Cognizant Technology Solutions’s payout ratio is currently 27.25%.

Insider Transactions at Cognizant Technology Solutions

In other news, insider Surya Gummadi sold 1,728 shares of the stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $83.06, for a total value of $143,527.68. Following the completion of the transaction, the insider owned 25,641 shares in the company, valued at approximately $2,129,741.46. This represents a 6.31% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO John Sunshin Kim sold 2,500 shares of the stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $80.00, for a total value of $200,000.00. Following the completion of the transaction, the chief accounting officer directly owned 36,149 shares of the company’s stock, valued at approximately $2,891,920. The trade was a 6.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 29,434 shares of company stock worth $2,460,809 over the last quarter. 0.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cognizant Technology Solutions

Large investors have recently modified their holdings of the stock. Lloyd Advisory Services LLC. bought a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at about $79,000. LSV Asset Management lifted its holdings in Cognizant Technology Solutions by 3.3% in the fourth quarter. LSV Asset Management now owns 1,806,918 shares of the information technology service provider’s stock valued at $149,974,000 after buying an additional 57,428 shares during the period. Advisory Alpha LLC boosted its stake in Cognizant Technology Solutions by 2.8% in the fourth quarter. Advisory Alpha LLC now owns 5,987 shares of the information technology service provider’s stock valued at $497,000 after acquiring an additional 163 shares during the last quarter. Texas Bank & Trust Co acquired a new stake in Cognizant Technology Solutions during the 4th quarter worth $249,000. Finally, Kingdom Financial Group LLC. acquired a new position in shares of Cognizant Technology Solutions in the 4th quarter valued at $45,000. 92.44% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Cognizant Technology Solutions

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

• Positive Sentiment: Q4 beat and raised FY2026 outlook — Cognizant reported Q4 revenue of $5.33B and EPS $1.35, topped estimates and set FY2026 EPS guidance of $5.56–$5.70, which underpins the market rally. Cognizant tops Q4 forecasts, rebounds on upbeat 2026 guidance
• Positive Sentiment: Record bookings and AI deal momentum — Management cited trailing‑12‑month bookings of $28.4B, 28 large deals in 2025 (including ~$500M “mega‑deals”) and strong AI demand as drivers of revenue visibility. Q4 2025 Earnings Call Highlights: Record Bookings
• Positive Sentiment: Partnership to accelerate AI in healthcare and operations — Cognizant teamed with Palantir (Foundry + AIP) to integrate with TriZetto healthcare platforms and enterprise ops, reinforcing the company’s AI‑builder strategy and addressable market. Cognizant partners with Palantir
• Positive Sentiment: Shareholder returns & dividend hike — Management announced ~$1.6B of capital returns for 2026 (including $1B buybacks) and raised the quarterly dividend to $0.33, which supports valuation and buyback‑driven EPS accretion. Cognizant Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Analyst price‑target increases — RBC and Morgan Stanley raised price targets (RBC to $88; Morgan Stanley to $82), signaling some sell‑side support for the stock after the results. Price target raises
• Neutral Sentiment: Q1 / FY detail available but execution watch remains — Management gave Q1 revenue near $5.4B and reiterated FY revenue growth bands (4–6.5%); useful guidance but investors will watch margin and booking conversion. Cognizant forecasts annual revenue above estimates
• Neutral Sentiment: Earnings call materials published — Full transcript and slides are available for investors who want to drill into vertical performance, bookings cadence and margin assumptions. Q4 2025 earnings call transcript
• Neutral Sentiment: Analyst/bull writeups on valuation — Several pieces (Zacks, others) argue value/growth upside given forward P/E and margin leverage; helpful for longer‑term conviction but not immediate market drivers. Zacks: Why Cognizant is a Top Value Stock
• Negative Sentiment: Insider sale disclosed — Director Surya Gummadi sold 1,728 shares at about $83.06; small relative to holdings and buybacks but sometimes watched by investors as a mild negative signal. SEC Filing: Insider Sale

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.