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

Cognizant Technology Solutions (NASDAQ:CTSH) updated its FY 2026 earnings guidance on Wednesday. The company provided 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 4.6%

Shares of CTSH stock traded down $2.56 on Thursday, hitting $53.41. The stock had a trading volume of 4,743,016 shares, compared to its average volume of 8,310,101. The firm has a market capitalization of $25.31 billion, a P/E ratio of 11.63, a P/E/G ratio of 1.10 and a beta of 0.87. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.23 and a quick ratio of 2.23. Cognizant Technology Solutions has a 1 year low of $37.08 and a 1 year high of $87.03. The company’s 50 day moving average price is $47.13 and its 200-day moving average price is $58.80.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The company had revenue of $5.48 billion for the quarter, compared to analyst estimates of $5.48 billion. During the same period in the prior year, the firm posted $1.31 earnings per share. 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 anticipate that Cognizant Technology Solutions will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 18th will be issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, August 18th. Cognizant Technology Solutions’s payout ratio is 28.70%.

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

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on CTSH shares. Guggenheim reaffirmed 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. Robert W. Baird set a $68.00 price objective on Cognizant Technology Solutions in a research note on Thursday. Morgan Stanley reissued a “negative” rating and issued a $51.00 price target on shares of Cognizant Technology Solutions in a research note on Thursday. Wells Fargo & Company lifted their price objective on Cognizant Technology Solutions from $61.00 to $67.00 and gave the stock an “overweight” rating in a research note on Thursday. Finally, Royal Bank Of Canada set a $55.00 price target on shares of Cognizant Technology Solutions in a research report on Friday, July 24th. Ten equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Cognizant Technology Solutions presently has an average rating of “Hold” and an average price target of $62.52.

Trending Headlines about Cognizant Technology Solutions

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

• Positive Sentiment: Full-year adjusted EPS guidance was raised to $5.70–$5.82, above the prior outlook and slightly ahead of consensus. Cognizant maintained its adjusted operating-margin target of 16.0%–16.2%. Cognizant Reports Second Quarter 2026 Results
• Positive Sentiment: Second-quarter revenue increased 4.5% year over year to $5.48 billion, while operating margin expanded to 15.9%. Financial Services revenue rose 12%, trailing 12-month bookings grew 5% to $29.1 billion, and the company repurchased approximately $1.1 billion of stock. Cognizant Reports Second Quarter 2026 Results
• Positive Sentiment: Management highlighted more than 8,000 AI engagements, platform growth and major customer deals as it shifts toward scaling AI-led services. Wells Fargo raised its price target from $61 to $67 and maintained an Overweight rating. Cognizant Q2 Earnings Call Focuses on AI Builder Shift
• Neutral Sentiment: Cognizant declared a quarterly dividend of $0.33 per share, implying an annualized yield of roughly 2.4% based on the reported share price. Cognizant Dividend Announcement
• Negative Sentiment: Second-quarter adjusted EPS of $1.37 narrowly missed the $1.38 consensus estimate. More importantly, third-quarter revenue guidance of $5.6–$5.7 billion was below the approximately $5.7 billion analyst expectation, reflecting cautious client spending on discretionary IT projects. Cognizant Forecasts Weak Quarterly Revenue

Institutional Trading of Cognizant Technology Solutions

A number of hedge funds have recently bought and sold shares of the company. Prosperity Bancshares Inc purchased a new position in shares of Cognizant Technology Solutions during the fourth quarter valued at approximately $29,000. JPL Wealth Management LLC purchased a new stake in shares of Cognizant Technology Solutions in the 3rd quarter worth $25,000. Geneos Wealth Management Inc. increased its stake in shares of Cognizant Technology Solutions by 118.8% in 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 in the last quarter. Wilkerson Advisory Group LLC purchased a new stake in shares of Cognizant Technology Solutions in the fourth quarter worth about $48,000. Finally, Sfam LLC bought a new stake in shares of Cognizant Technology Solutions in the 4th quarter valued at approximately $52,000. Institutional investors own 92.44% of the company’s stock.

Cognizant Technology Solutions Company 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.