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

Cognizant Technology Solutions (NASDAQ:CTSH) issued an update on its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 5.700-5.820 for the period, compared to the consensus estimate of 5.690. The company issued revenue guidance of $22.0 billion-$22.4 billion, compared to the consensus revenue estimate of $22.3 billion. Cognizant Technology Solutions also updated its Q3 2026 guidance to EPS.

Cognizant Technology Solutions Trading Down 3.7%

Cognizant Technology Solutions stock opened at $53.90 on Friday. Cognizant Technology Solutions has a 52-week low of $37.08 and a 52-week high of $87.03. The company has a market cap of $25.54 billion, a P/E ratio of 11.59, a P/E/G ratio of 1.22 and a beta of 0.87. The company has a quick ratio of 2.23, a current ratio of 2.18 and a debt-to-equity ratio of 0.11. The business has a 50-day simple moving average of $47.16 and a two-hundred day simple moving average of $58.58.

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

Cognizant Technology Solutions Announces Dividend

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

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

Analyst Upgrades and Downgrades

Several research firms recently weighed in on CTSH. BMO Capital Markets lowered their target price on Cognizant Technology Solutions from $83.00 to $63.00 in a research report on Thursday, April 30th. Weiss Ratings cut Cognizant Technology Solutions from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday, May 13th. Deutsche Bank Aktiengesellschaft set a $55.00 price objective on Cognizant Technology Solutions in a research report on Friday, July 10th. Wells Fargo & Company boosted their price objective on Cognizant Technology Solutions from $61.00 to $67.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Robert W. Baird set a $68.00 price target on shares of Cognizant Technology Solutions in a report on Thursday. Ten investment analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $63.17.

Trending Headlines about Cognizant Technology Solutions

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

• Positive Sentiment: Cognizant highlighted more than 8,000 AI engagements, expanding platform activity, large deal wins and a shift toward becoming an “AI builder.” Management expects AI-led services to scale, reinforcing the view that AI could support longer-term revenue growth and competitive differentiation. Cognizant Q2 Earnings Call Focuses on AI Builder Shift
• Positive Sentiment: Financial-services demand helped quarterly revenue reach $5.48 billion, up 4.5% year over year and in line with expectations. Analysts also pointed to margin-expansion potential, robust financial-services growth and favorable AI demand. Wells Fargo raised its price target from $61 to $67 and maintained an Overweight rating, while Morgan Stanley also increased its target based on Cognizant’s differentiated AI strategy. Cognizant Q2 Earnings Results
• Positive Sentiment: The company declared a quarterly dividend of $0.33 per share, representing an approximately 2.4% annualized yield. The payout adds shareholder-return support while investors wait for AI investments to translate into faster growth.
• Neutral Sentiment: TD Cowen raised its price target from $47 to $54 but retained a Hold rating, suggesting the firm sees limited near-term upside at the current valuation. TD Cowen Price Target Update
• Negative Sentiment: Second-quarter adjusted earnings of $1.37 per share narrowly missed the $1.38 consensus estimate, while higher interest costs pressured profitability. The earnings miss limits the immediate benefit from the revenue beat. Cognizant Q2 Earnings Miss
• Negative Sentiment: Management issued a cautious near-term outlook, forecasting third-quarter revenue below Wall Street expectations and trimming or narrowing its 2026 sales outlook to roughly $22.04 billion–$22.35 billion. Cautious client spending on discretionary IT projects remains a key risk, even as AI-related demand grows. Cognizant Forecasts Weak Quarterly Revenue

Institutional Trading of Cognizant Technology Solutions

A number of institutional investors have recently bought and sold shares of the stock. Prosperity Bancshares Inc purchased a new stake in Cognizant Technology Solutions in the 4th quarter valued at about $29,000. JPL Wealth Management LLC purchased a new position in Cognizant Technology Solutions during the 3rd quarter worth $25,000. Geneos Wealth Management Inc. lifted its holdings in shares of Cognizant Technology Solutions by 118.8% in the 1st quarter. Geneos Wealth Management Inc. now owns 569 shares of the information technology service provider’s stock worth $44,000 after buying an additional 309 shares during the period. Wilkerson Advisory Group LLC purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at $48,000. Finally, Sfam LLC purchased a new stake in Cognizant Technology Solutions in the fourth quarter worth about $52,000. 92.44% of the stock is currently owned by 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.