With a market cap of $40.9 billion, Cognizant Technology Solutions Corporation (CTSH) is a global professional services company that provides consulting, technology, and outsourcing services across North America, Europe, and other international markets. It delivers AI-driven digital, engineering, and business solutions to clients across industries, including financial services, healthcare, manufacturing, and communications.
Shares of the Teaneck, New Jersey-based company have lagged behind the broader market over the past 52 weeks. CTSH stock has returned 2.9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 15%. Moreover, shares of the company have risen marginally on a YTD basis, compared to SPX's 1.9% increase.
Looking closer, shares of the information technology consulting and outsourcing firm have also underperformed the State Street Technology Select Sector SPDR ETF's (XLK) surge of 27.7% over the past 52 weeks.
Shares of Cognizant soared 5.7% on Oct. 29, 2025, after the company reported Q3 2025 adjusted EPS of $1.39 and revenue of $5.42 billion, beating estimates. The company also raised its full-year adjusted profit forecast to $5.22 per share - $5.26 per share and lifted the lower end of its annual revenue outlook to $21.05 billion. Investor optimism was further fueled by Cognizant’s strong AI-driven growth strategy and expectations of increased enterprise spending on digital infrastructure.
For the fiscal year that ended in December 2025, analysts expect CTSH's adjusted EPS to increase 10.5% year-over-year to $5.25. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buys,” one “Moderate Buy” rating, and 14 “Holds.”
This configuration is more bullish than three months ago, with seven “Strong Buy” ratings on the stock.
On Jan. 23, Susquehanna analyst James Friedman raised Cognizant’s price target to $98 and maintained a “Positive” rating.
The mean price target of $89.95 represents a nearly 8% premium to CTSH’s current price levels. The Street-high price target of $107 suggests a 28.5% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions 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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