Key Points
- Insider sale: Director Surya Gummadi sold 1,728 shares at $83.06 for $143,527.68, trimming his stake by 6.31% to 25,641 shares (≈$2.13M), as disclosed in an SEC filing.
- Q4 beat and upbeat guidance: Cognizant reported Q4 EPS of $1.35 (vs. $1.32 est.) and $5.33B revenue, raised FY2026 EPS guidance to 5.560–5.700, and cited record $28.4B trailing bookings and large AI/“mega” deals supporting growth.
- Capital returns increased: The company raised its quarterly dividend to $0.33 (annualized $1.32, ~1.7% yield) and outlined $1.6B of shareholder returns in 2026, including $1B in share repurchases.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH - Get Free Report) insider Surya Gummadi sold 1,728 shares of Cognizant Technology Solutions stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $83.06, for a total value of $143,527.68. Following the completion of the transaction, the insider directly owned 25,641 shares of the company's stock, valued at approximately $2,129,741.46. This trade represents a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link.
Cognizant Technology Solutions Stock Up 3.0%
Shares of Cognizant Technology Solutions stock opened at $76.71 on Thursday. The stock's 50-day moving average is $82.91 and its 200 day moving average is $74.99. Cognizant Technology Solutions Corporation has a one year low of $65.15 and a one year high of $90.82. The firm has a market cap of $37.02 billion, a price-to-earnings ratio of 17.80, a PEG ratio of 1.43 and a beta of 0.95. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.36 and a quick ratio of 2.36.
Cognizant Technology Solutions (NASDAQ:CTSH - Get Free Report) last issued its quarterly earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.32 by $0.03. The firm had revenue of $5.33 billion for the quarter, compared to analyst estimates of $5.31 billion. Cognizant Technology Solutions had a return on equity of 17.00% and a net margin of 10.20%.The company's revenue was up 4.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. Equities research analysts anticipate that Cognizant Technology Solutions Corporation will post 4.98 EPS for the current year.
Cognizant Technology Solutions Increases Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Stockholders of record on Wednesday, February 18th will be given a dividend of $0.33 per share. This is a boost from Cognizant Technology Solutions's previous quarterly dividend of $0.31. The ex-dividend date of this dividend is Wednesday, February 18th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 1.7%. Cognizant Technology Solutions's payout ratio is currently 28.77%.
Institutional Investors Weigh In On Cognizant Technology Solutions
Several institutional investors have recently added to or reduced their stakes in the company. Flagship Harbor Advisors LLC bought a new stake in shares of Cognizant Technology Solutions in the fourth quarter worth about $28,000. Physician Wealth Advisors Inc. lifted its holdings in Cognizant Technology Solutions by 165.1% in the 4th quarter. Physician Wealth Advisors Inc. now owns 342 shares of the information technology service provider's stock worth $28,000 after buying an additional 213 shares during the period. Lodestone Wealth Management LLC bought a new stake in shares of Cognizant Technology Solutions in the 4th quarter worth approximately $28,000. Hilltop National Bank purchased a new position in shares of Cognizant Technology Solutions during the second quarter valued at approximately $27,000. Finally, NewSquare Capital LLC raised its holdings in shares of Cognizant Technology Solutions by 71.8% during the second quarter. NewSquare Capital LLC now owns 366 shares of the information technology service provider's stock valued at $29,000 after acquiring an additional 153 shares in the last quarter. Hedge funds and other institutional investors own 92.44% of the company's stock.
Wall Street Analysts Forecast Growth
Several research analysts have issued reports on the company. Susquehanna reiterated a "positive" rating and issued a $98.00 price target on shares of Cognizant Technology Solutions in a report on Friday, January 23rd. UBS Group reiterated a "neutral" rating and set a $82.00 target price (up from $78.00) on shares of Cognizant Technology Solutions in a research note on Monday, December 8th. Berenberg Bank set a $107.00 price objective on Cognizant Technology Solutions and gave the company a "buy" rating in a research note on Thursday, January 22nd. Citigroup reaffirmed a "neutral" rating and set a $86.00 price objective (up from $75.00) on shares of Cognizant Technology Solutions in a report on Thursday, January 22nd. Finally, Mizuho set a $85.00 price target on Cognizant Technology Solutions in a report on Thursday, October 30th. Nine investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, Cognizant Technology Solutions has an average rating of "Hold" and an average target price of $90.28.
View Our Latest Research Report on Cognizant Technology Solutions
Cognizant Technology Solutions News Summary
Here are the key news stories impacting Cognizant Technology Solutions this week:
- Positive Sentiment: Q4 beat and upbeat 2026 guidance — Cognizant reported Q4 revenue of $5.33B and EPS $1.35, topping estimates, and raised FY2026 guidance (EPS 5.560–5.700) and revenue growth target to 4.0%–6.5%, which drove the favorable market reaction. Cognizant tops Q4 forecasts, rebounds on upbeat 2026 guidance
- Positive Sentiment: Record bookings & large AI deals — Trailing 12‑month bookings rose to $28.4B with 28 large deals in 2025, and management cited ~$500M "mega‑deals" and AI demand as key growth drivers supporting the outlook. Q4 2025 Earnings Call Highlights: Record Bookings
- Positive Sentiment: Capital returns & dividend raise — Cognizant plans $1.6B of shareholder returns in 2026 (including $1B in repurchases) and raised its quarterly dividend 6.5% to $0.33, a cash‑return signal that supports valuation. Cognizant Reports Fourth Quarter and Full-Year 2025 Results
- Neutral Sentiment: Updated Q1 / FY numbers — Management gave Q1 revenue guidance near $5.4B and reiterated FY revenue bands that modestly outpace street estimates; these reduce execution risk but leave room for scrutiny on margin/consensus alignment. Cognizant forecasts annual revenue above estimates
- Neutral Sentiment: Full earnings materials and transcript available — Investors can review the call transcript, slides and PR for detail on verticals and AI strategy to judge sustainability of bookings and margins. Q4 2025 Earnings Call Transcript
- Neutral Sentiment: Bull case writeups highlight valuation upside — Several bullish analyses surfaced noting attractive forward P/E and margin expansion potential; useful for investors doing conviction work but not market-moving by themselves. CTSH: A Bull Case Theory
- Negative Sentiment: Insider sale disclosed — Director/insider Surya Gummadi sold 1,728 shares at ~$83.06; the size is small relative to total holdings and buyback program but may be noted by some investors. SEC Filing: Insider Sale
- Neutral Sentiment: Short‑interest data is inconsistent — a reported "large increase" appears to contain erroneous zeros/NaN in the summary; no clear evidence of a material short build at this time.
About Cognizant Technology Solutions
(
Get Free Report)
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.
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