Cognizant Technology Solutions (NASDAQ:CTSH) Releases FY 2025 Earnings Guidance

Cognizant Technology Solutions (NASDAQ:CTSH) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 4.900-5.060 for the period, compared to the consensus estimate of 4.960. The company issued revenue guidance of $20.3 billion-$20.8 billion, compared to the consensus revenue estimate of $20.9 billion. Cognizant Technology Solutions also updated its Q1 2025 guidance to EPS.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on CTSH. TD Cowen increased their price target on Cognizant Technology Solutions from $75.00 to $76.00 and gave the stock a “hold” rating in a research note on Thursday, October 31st. Deutsche Bank Aktiengesellschaft increased their price target on Cognizant Technology Solutions from $70.00 to $80.00 and gave the stock a “hold” rating in a research note on Tuesday, October 22nd. Needham & Company LLC reiterated a “hold” rating on shares of Cognizant Technology Solutions in a research note on Thursday. Mizuho increased their price target on Cognizant Technology Solutions from $83.00 to $84.00 and gave the stock a “neutral” rating in a research note on Friday, November 1st. Finally, Barclays upgraded Cognizant Technology Solutions from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $80.00 to $95.00 in a research report on Tuesday, December 17th. Seventeen investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $83.22.

Cognizant Technology Solutions Trading Up 4.2 %

CTSH traded up $3.49 on Thursday, hitting $87.09. The company had a trading volume of 6,343,891 shares, compared to its average volume of 3,003,217. The company has a market cap of $43.18 billion, a PE ratio of 19.27, a PEG ratio of 2.21 and a beta of 1.07. Cognizant Technology Solutions has a 12-month low of $63.79 and a 12-month high of $87.61. The company has a quick ratio of 2.23, a current ratio of 2.23 and a debt-to-equity ratio of 0.08. The business’s fifty day simple moving average is $79.31 and its 200 day simple moving average is $77.45.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its quarterly earnings data on Wednesday, February 5th. The information technology service provider reported $1.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.12 by $0.09. Cognizant Technology Solutions had a net margin of 11.60% and a return on equity of 17.08%. Equities research analysts expect that Cognizant Technology Solutions will post 4.66 EPS for the current year.

Cognizant Technology Solutions Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, February 26th. Stockholders of record on Tuesday, February 18th will be paid a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a dividend yield of 1.42%. The ex-dividend date of this dividend is Tuesday, February 18th. This is an increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.30. Cognizant Technology Solutions’s payout ratio is currently 26.55%.

Insider Activity

In other news, CAO John Sunshin Kim sold 5,000 shares of Cognizant Technology Solutions stock in a transaction that occurred on Tuesday, December 3rd. The shares were sold at an average price of $80.11, for a total transaction of $400,550.00. Following the completion of the sale, the chief accounting officer now owns 39,022 shares of the company’s stock, valued at approximately $3,126,052.42. The trade was a 11.36 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.26% of the company’s stock.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions Corporation, a professional services company, provides consulting and technology, and outsourcing services in North America, Europe, and internationally. It operates through four segments: Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.