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

Cognizant Technology Solutions (NASDAQ:CTSH) updated its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 5.560-5.700 for the period, compared to the consensus earnings per share 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 Price Performance

CTSH traded up $2.51 during trading on Wednesday, hitting $77.01. The company’s stock had a trading volume of 6,634,865 shares, compared to its average volume of 4,920,983. The firm has a market capitalization of $37.17 billion, a price-to-earnings ratio of 17.87, a P/E/G ratio of 1.59 and a beta of 0.95. The business’s fifty day simple moving average is $82.92 and its 200 day simple moving average is $74.98. The company has a current ratio of 2.36, a quick ratio of 2.36 and a debt-to-equity ratio of 0.04. Cognizant Technology Solutions has a twelve month low of $65.15 and a twelve month high of $90.82.

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 analysts’ consensus estimates of $1.32 by $0.03. Cognizant Technology Solutions had a return on equity of 17.00% and a net margin of 10.20%.The company had revenue of $5.33 billion for the quarter, compared to analyst estimates of $5.31 billion. During the same quarter last year, the firm posted $1.21 EPS. The firm’s revenue for the quarter was up 4.9% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. On average, equities research analysts forecast that Cognizant Technology Solutions will post 4.98 EPS for the current fiscal year.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Mizuho set a $85.00 price target on Cognizant Technology Solutions in a research report on Thursday, October 30th. Weiss Ratings reissued a “hold (c+)” rating on shares of Cognizant Technology Solutions in a report on Monday, December 29th. William Blair upgraded Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a research note on Friday, November 21st. The Goldman Sachs Group reiterated a “neutral” rating and set a $84.00 target price on shares of Cognizant Technology Solutions in a research report on Wednesday, October 29th. Finally, Wells Fargo & Company restated an “overweight” rating and set a $98.00 target price (up from $87.00) on shares of Cognizant Technology Solutions in a research report on Wednesday, January 14th. Nine equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $90.28.

Insiders Place Their Bets

In other Cognizant Technology Solutions news, CEO Ravi Kumar Singisetti sold 3,125 shares of the stock in a transaction that occurred on Thursday, December 4th. The shares were sold at an average price of $80.01, for a total transaction of $250,031.25. Following the transaction, the chief executive officer directly owned 75,454 shares in the company, valued at $6,037,074.54. This trade represents a 3.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Michael Patsalos-Fox sold 7,000 shares of the business’s stock in a transaction dated Thursday, December 11th. The shares were sold at an average price of $83.52, for a total value of $584,640.00. Following the transaction, the director owned 47,729 shares in the company, valued at approximately $3,986,326.08. This represents a 12.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 27,706 shares of company stock valued at $2,317,281 in the last quarter. Corporate 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 results beat expectations — EPS $1.35 vs. $1.32 consensus and revenue $5.33B vs. $5.31B; revenue grew 4.9% YoY, supporting the rally. Zacks: Cognizant Beats Q4
• Positive Sentiment: 2026 guidance nudged up — FY EPS guidance of $5.56–5.70 (consensus ~$5.62) and revenue guide of $22.1B–$22.7B (consensus ~$22.1B); Q1 revenue guide ~ $5.4B, above street est. These forward ranges imply modest upside to Street numbers and reduce near‑term forecast risk. PR Newswire: Q4 & FY Results
• Positive Sentiment: AI-driven large deals and bookings strength — management highlighted $500M “mega-deals,” 28 large deals in 2025 and $28.4B trailing 12‑month bookings, signaling durable demand for AI-enabled services. This underpins revenue guidance and growth conviction. Benzinga: AI Mega-Deals
• Positive Sentiment: Shareholder returns increased — company plans $1.6B in capital returns for 2026 (including $1B buybacks) and raised the quarterly dividend to $0.33, which supports EPS per-share metrics and investor sentiment. PR Newswire: Capital Returns
• Neutral Sentiment: Guidance largely in line — FY EPS midpoint is close to consensus, so upside may be limited to execution and bookings conversion; investors will watch quarterly cadence and margin progression. Reuters: Forecast Above Estimates
• Neutral Sentiment: Short-interest data appears anomalous — recent reports show zero short interest (likely a data glitch), so don’t read into short-squeeze dynamics from those figures.
• Neutral Sentiment: Technical/valuation context — at the reported price the stock sits below its 50‑day moving average (~$82.92) but above the 200‑day (~$74.98); P/E around ~18. Investors will weigh growth acceleration vs. near‑term multiple expansion.

Hedge Funds Weigh In On Cognizant Technology Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC purchased a new position in shares of Cognizant Technology Solutions during the 4th quarter worth $214,000. Geneos Wealth Management Inc. boosted its position 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 valued at $44,000 after purchasing an additional 309 shares during the period. Acadian Asset Management LLC acquired a new position in Cognizant Technology Solutions in the 1st quarter valued at about $142,000. Cresset Asset Management LLC boosted its holdings in shares of Cognizant Technology Solutions by 11.4% in the second quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider’s stock valued at $715,000 after acquiring an additional 935 shares in the last quarter. Finally, Jump Financial LLC grew its stake in shares of Cognizant Technology Solutions by 231.4% during the 2nd quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider’s stock worth $2,315,000 after purchasing an additional 20,716 shares during the period. 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.