Cognizant Technology Solutions Corporation (CTSH) is a Teaneck, New Jersey-based multinational professional services and IT consulting company. The company provides digital transformation, technology consulting, IT outsourcing, and business process services to enterprises across North America, Europe, and other international markets. Valued at a market cap of $29.3 billion, the company operates through Financial Services, Health Sciences, Products and Resources, Communications, Media and Technology segments.
CTSH shares have lagged behind the broader market over the past year, declining 12.2% compared to the S&P 500 Index ($SPX) 10.5% surge. Moreover, in 2026, the stock has dropped 23.1%, trailing the SPX’s 10.6% rise as well.
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Focusing on its industry benchmark, the State Street Technology Select Sector SPDR ETF (XLK) has risen 16.9% over the past year, outperforming the stock. In 2026, XLK surged 22.6% and has rallied the stock.
www.barchart.com Cognizant released its FY2026 Q3 results on Oct. 29, and its shares rose 4.1% in the next trading session. Revenue increased 4.6% year over year to $5.66 billion, or 4.8% in constant currency, exceeding the midpoint of management's guidance. Adjusted EPS rose 7.2% to $1.49, while adjusted net income came in at $670 million. Profitability showed further improvement, with adjusted operating margin expanding 30 basis points year over year to 16.3%, marking the company's seventh consecutive quarter of adjusted margin expansion. Cognizant continued expanding its AI capabilities, with more than 50% of its code now AI-assisted and employees earning over 95,000 frontier AI badges and certifications. The company also repurchased 4.9 million shares for $258 million during the quarter and declared a quarterly dividend of $0.33 per share.
Looking ahead, Cognizant revised its full-year 2026 constant-currency revenue growth outlook to 4%–4.4% and expects an adjusted operating margin of approximately 16.1%, representing 30 basis points of annual expansion. Adjusted EPS guidance was set at $5.72–$5.79, implying 8%–10% year-over-year growth.
For the current year, which ends in December, analysts expect CTSH’s EPS to rise 9.1% to $5.76 on a diluted basis. The company’s earnings surprise history is mixed. It surpassed the consensus estimate in three of the last four quarters, while missing on another occasion.
Among the 27 analysts covering CTSH stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and 16 “Holds.”
www.barchart.com On Nov. 2, Mizuho raised its price target on Cognizant Technology Solutions to $69 from $64 while maintaining a “Neutral” rating.
CTSH’s mean price target of $68.48 indicates a premium of 7.3% from the current market price. Its Street-high target of $82 suggests a robust 28.5% upside potential from current price levels.
On the date of publication, Kritika Sarmah did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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