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

Cognizant Technology Solutions (NASDAQ:CTSH) updated its FY 2026 earnings guidance on Wednesday morning. The company provided earnings per share guidance of 5.700-5.820 for the period, compared to the consensus earnings per share 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.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on CTSH shares. Nomura cut their price target on Cognizant Technology Solutions from $93.00 to $74.00 and set a “buy” rating for the company in a report on Wednesday, July 1st. Mizuho dropped their target price on shares of Cognizant Technology Solutions from $87.00 to $68.00 and set a “neutral” rating for the company in a research note on Wednesday, May 6th. Berenberg Bank set a $59.00 price target on shares of Cognizant Technology Solutions and gave the company a “hold” rating in a research note on Wednesday, June 17th. TD Cowen reduced their price objective on Cognizant Technology Solutions from $62.00 to $47.00 and set a “hold” rating on the stock in a report on Friday, June 26th. Finally, Guggenheim reissued a “buy” rating and issued a $65.00 target price (down from $80.00) on shares of Cognizant Technology Solutions in a research note on Monday. Ten analysts have rated the stock with a Buy rating and fourteen have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $61.35.

Cognizant Technology Solutions Trading Up 11.2%

CTSH traded up $5.66 during trading on Wednesday, reaching $55.97. 6,589,948 shares of the company’s stock were exchanged, compared to its average volume of 8,247,849. The company’s fifty day moving average price is $47.04 and its 200-day moving average price is $59.01. The firm has a market capitalization of $26.52 billion, a PE ratio of 12.17, a P/E/G ratio of 1.03 and a beta of 0.87. Cognizant Technology Solutions has a fifty-two week low of $37.08 and a fifty-two week high of $87.03. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). The firm had revenue of $5.48 billion during the quarter, compared to analyst estimates of $5.48 billion. Cognizant Technology Solutions had a net margin of 10.41% and a return on equity of 17.50%. The business’s revenue was up 4.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.31 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. As a group, equities analysts forecast that Cognizant Technology Solutions will post 5.7 EPS for the current year.

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

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: Improved full-year earnings outlook: Cognizant raised its 2026 adjusted diluted EPS guidance to $5.70-$5.82 from $5.69 consensus, while maintaining adjusted operating-margin guidance of 16.0%-16.2%. Cognizant Reports Second Quarter 2026 Results
• Positive Sentiment: Solid second-quarter performance: Revenue rose 4.5% year over year to $5.481 billion, operating margin expanded to 15.9%, adjusted EPS increased 4.6% to $1.37, and trailing 12-month bookings grew 5% to $29.1 billion. Financial Services revenue was particularly strong, rising 12%. Cognizant Q2 Revenue Results
• Positive Sentiment: Capital returns supported sentiment: The company deployed approximately $1.1 billion on share repurchases during the quarter, including 22.5 million shares, which can support per-share earnings and signal management’s confidence in valuation. Cognizant Reports Second Quarter 2026 Results
• Positive Sentiment: AI growth catalysts: Cognizant launched an EMEA AI unit to help businesses scale agentic-AI projects and recently expanded its partnership with Anthropic. It also won a five-year technology and AI modernization engagement with The Andover Companies. Cognizant Launches EMEA AI Unit
• Negative Sentiment: Near-term revenue guidance was cautious: Third-quarter revenue is projected at $5.6-$5.7 billion, roughly in line with or below Wall Street expectations, as clients remain conservative on discretionary IT spending and prioritize data-center infrastructure over software investments. Cognizant Forecasts Weak Quarterly Revenue
• Negative Sentiment: Minor earnings miss: Adjusted quarterly EPS of $1.37 narrowly missed the $1.38 consensus estimate, although it improved from $1.31 a year earlier. Cognizant Lags Q2 Earnings Estimates

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CTSH. Brighton Jones LLC bought a new stake in shares of Cognizant Technology Solutions during the 4th quarter worth approximately $214,000. Geneos Wealth Management Inc. raised its stake in shares of 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 valued at $44,000 after acquiring an additional 309 shares during the last quarter. Acadian Asset Management LLC bought a new stake in shares of Cognizant Technology Solutions in the 1st quarter valued at about $142,000. Cresset Asset Management LLC increased its position in Cognizant Technology Solutions by 11.4% during the 2nd quarter. Cresset Asset Management LLC now owns 9,160 shares of the information technology service provider’s stock valued at $715,000 after purchasing an additional 935 shares during the period. Finally, Jump Financial LLC raised its stake in Cognizant Technology Solutions by 231.4% during the second quarter. Jump Financial LLC now owns 29,667 shares of the information technology service provider’s stock worth $2,315,000 after buying an additional 20,716 shares during the last quarter. 92.44% of the stock is 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.