Cognizant Technology Solutions (NASDAQ:CTSH) Issues FY 2026 Earnings Guidance

Cognizant Technology Solutions (NASDAQ:CTSH) updated its FY 2026 earnings guidance on Wednesday. The company provided EPS guidance of 5.560-5.700 for the period, compared to the consensus EPS estimate of 5.620. The company issued revenue guidance of $22.1 billion-$22.7 billion, compared to the consensus revenue estimate of $22.1 billion. Cognizant Technology Solutions also updated its Q1 2026 guidance to EPS.

Cognizant Technology Solutions Stock Up 0.4%

NASDAQ:CTSH traded up $0.32 during mid-day trading on Friday, reaching $77.16. The company’s stock had a trading volume of 2,149,180 shares, compared to its average volume of 5,123,884. Cognizant Technology Solutions has a 1 year low of $65.15 and a 1 year high of $90.82. The company has a quick ratio of 2.36, a current ratio of 2.34 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $37.24 billion, a PE ratio of 16.96, a price-to-earnings-growth ratio of 1.46 and a beta of 0.95. The stock has a fifty day moving average of $82.91 and a 200-day moving average of $75.00.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings data on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.32 by $0.03. The firm had revenue of $5.33 billion for the quarter, compared to the consensus estimate of $5.31 billion. Cognizant Technology Solutions had a net margin of 10.56% and a return on equity of 17.17%. The company’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.21 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Equities research analysts forecast that Cognizant Technology Solutions will post 4.98 earnings per share for the current year.

Cognizant Technology Solutions Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th will be paid a $0.33 dividend. The ex-dividend date is Wednesday, February 18th. This is a positive change from Cognizant Technology Solutions’s previous quarterly dividend of $0.31. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.7%. Cognizant Technology Solutions’s dividend payout ratio (DPR) is currently 29.01%.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on CTSH shares. Berenberg Bank set a $107.00 price target on Cognizant Technology Solutions and gave the stock a “buy” rating in a report on Thursday, January 22nd. William Blair upgraded shares of Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a research report on Friday, November 21st. Morgan Stanley upped their price objective on shares of Cognizant Technology Solutions from $80.00 to $82.00 and gave the stock an “equal weight” rating in a report on Thursday. BMO Capital Markets reiterated a “market perform” rating and issued a $96.00 target price on shares of Cognizant Technology Solutions in a report on Thursday, January 29th. Finally, Wells Fargo & Company restated an “overweight” rating and set a $98.00 price target (up from $87.00) on shares of Cognizant Technology Solutions in a research note on Wednesday, January 14th. Nine analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, Cognizant Technology Solutions presently has a consensus rating of “Hold” and an average price target of $90.78.

Insider Transactions at Cognizant Technology Solutions

In other news, Director Michael Patsalos-Fox sold 2,000 shares of the stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $84.23, for a total transaction of $168,460.00. Following the completion of the sale, the director owned 29,729 shares in the company, valued at approximately $2,504,073.67. This represents a 6.30% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO John Sunshin Kim sold 2,500 shares of the business’s stock in a transaction dated Thursday, December 4th. The shares were 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 owned 36,149 shares in the company, valued at $2,891,920. This trade represents a 6.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 29,434 shares of company stock valued at $2,460,809 in the last 90 days. Company insiders own 0.32% of the company’s stock.

Key Headlines Impacting Cognizant Technology Solutions

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

• Positive Sentiment: Q4 beat and raised FY‑2026 guidance — Cognizant reported Q4 revenue of $5.33B and EPS $1.35, topped estimates, and set FY‑2026 EPS guidance of $5.56–$5.70, which improved near‑term earnings visibility. Cognizant tops Q4 forecasts, rebounds on upbeat 2026 guidance
• Positive Sentiment: Record bookings and AI/large deals — Trailing 12‑month bookings rose to $28.4B with multiple large “mega‑deals” and management highlighted AI demand as a key growth driver supporting the raised outlook. Q4 2025 Earnings Call Highlights: Record Bookings
• Positive Sentiment: Partnership to accelerate AI modernization — Cognizant announced a strategic partnership with Palantir to combine Palantir Foundry/AIP with Cognizant’s TriZetto and operations capabilities, positioning the company to capture enterprise and healthcare AI transformation projects. Cognizant partners with Palantir to Accelerate AI-Driven Modernization
• Positive Sentiment: Capital returns and dividend increase — Management outlined $1.6B of 2026 shareholder returns (including ~$1B buybacks) and raised the quarterly dividend to $0.33, boosting yield and signaling confidence in cash flow. Cognizant Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: Analyst price‑target revisions — Banks including RBC and Morgan Stanley raised price targets (RBC to $88, Morgan Stanley to $82), reflecting the stronger results and reducing near‑term uncertainty for some investors. CTSH: Price target raised reports
• Neutral Sentiment: Management provided Q1 revenue and FY bands that modestly outpace consensus — helpful for execution clarity but investors will watch margins and bookings conversion. Cognizant forecasts annual revenue above estimates
• Neutral Sentiment: Earnings materials and call transcripts are available — useful for digging into vertical performance, margin levers and AI pipeline but not market moving by themselves. Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Bullish writeups and Zacks style‑score pieces surfaced — highlight potential valuation upside (forward P/E and growth mix) but are secondary to company results. Zacks: Why Cognizant is a Top Value Stock
• Negative Sentiment: Insider sale disclosed — A director sold 1,728 shares at ~$83; the amount is modest relative to total holdings and buybacks but may be noted by some investors. SEC Filing: Insider Sale

Hedge Funds Weigh In On Cognizant Technology Solutions

Several hedge funds have recently bought and sold shares of CTSH. JPL Wealth Management LLC purchased a new stake in Cognizant Technology Solutions in the 3rd quarter valued at about $25,000. WealthCollab LLC grew its holdings in Cognizant Technology Solutions by 37.1% in the third quarter. WealthCollab LLC now owns 643 shares of the information technology service provider’s stock valued at $43,000 after purchasing an additional 174 shares during the period. Geneos Wealth Management Inc. increased its position in Cognizant Technology Solutions by 118.8% during the first quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock worth $44,000 after purchasing an additional 309 shares during the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in Cognizant Technology Solutions during the third quarter worth approximately $53,000. Finally, WFA of San Diego LLC acquired a new position in shares of Cognizant Technology Solutions in the 2nd quarter valued at $78,000. 92.44% of the stock is owned by hedge funds and other institutional investors.

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.