Cognizant Technology Solutions Corporation $CTSH Shares Sold by Royal Bank of Canada

Royal Bank of Canada reduced its stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH) by 36.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 938,180 shares of the information technology service provider’s stock after selling 545,601 shares during the period. Royal Bank of Canada owned 0.20% of Cognizant Technology Solutions worth $57,556,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Evolve Private Wealth LLC acquired a new stake in Cognizant Technology Solutions during the 4th quarter worth $2,642,000. OFI Invest Asset Management acquired a new position in Cognizant Technology Solutions in the fourth quarter valued at $8,421,000. Aware Super Pty Ltd as trustee of Aware Super purchased a new position in shares of Cognizant Technology Solutions during the first quarter worth about $29,510,000. Pzena Investment Management LLC grew its holdings in shares of Cognizant Technology Solutions by 14.9% during the first quarter. Pzena Investment Management LLC now owns 20,262,362 shares of the information technology service provider’s stock worth $1,243,096,000 after purchasing an additional 2,633,683 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its position in shares of Cognizant Technology Solutions by 34.3% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 2,874,274 shares of the information technology service provider’s stock worth $238,565,000 after purchasing an additional 734,337 shares in the last quarter. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions Stock Performance

NASDAQ CTSH opened at $55.35 on Friday. The firm has a market cap of $26.23 billion, a P/E ratio of 11.90, a P/E/G ratio of 1.21 and a beta of 0.87. Cognizant Technology Solutions Corporation has a 52-week low of $37.08 and a 52-week high of $87.03. The business’s 50-day moving average price is $47.22 and its 200 day moving average price is $58.56. The company has a quick ratio of 2.23, a current ratio of 2.18 and a debt-to-equity ratio of 0.11.

Cognizant Technology Solutions (NASDAQ:CTSH) last posted its quarterly earnings data on Wednesday, July 29th. The information technology service provider reported $1.37 EPS for the quarter, missing the consensus estimate of $1.38 by ($0.01). Cognizant Technology Solutions had a net margin of 10.26% and a return on equity of 17.70%. The company had revenue of $5.48 billion for the quarter, compared to analysts’ expectations of $5.48 billion. During the same period in the prior year, the company earned $1.31 earnings per share. The firm’s revenue was up 4.5% on a year-over-year basis. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. On average, equities research analysts expect that Cognizant Technology Solutions Corporation will post 5.7 earnings per share for the current year.

Cognizant Technology Solutions Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 18th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, August 18th. Cognizant Technology Solutions’s dividend payout ratio is 28.39%.

Cognizant Technology Solutions declared that its Board of Directors has initiated a stock repurchase plan on Monday, May 18th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the information technology service provider to repurchase up to 9% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board believes its stock is undervalued.

Analysts Set New Price Targets

CTSH has been the subject of a number of research analyst reports. Jefferies Financial Group decreased their target price on Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating for the company in a research report on Monday, May 4th. Daiwa Securities Group cut their price target on Cognizant Technology Solutions from $65.00 to $42.00 and set a “neutral” rating on the stock in a research report on Wednesday, June 24th. Morgan Stanley reissued a “negative” rating and issued a $51.00 price objective (up from $44.00) on shares of Cognizant Technology Solutions in a report on Thursday. Berenberg Bank set a $59.00 target price on shares of Cognizant Technology Solutions and gave the stock a “hold” rating in a research report on Wednesday, June 17th. Finally, Evercore cut their target price on shares of Cognizant Technology Solutions from $100.00 to $70.00 in a report on Thursday, April 30th. Ten equities research analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $63.17.

Cognizant Technology Solutions News Roundup

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

• Positive Sentiment: Broader AI strategy: Cognizant is positioning itself as an implementation and consulting partner across multiple leading AI models, including Anthropic and OpenAI, reducing the risk of relying on a single platform. The company reported more than 8,000 AI engagements and is emphasizing AI-led services, platforms and large deals. Anthropic Is Only Part of the Story. Cognizant Has a Much Bigger AI Plan
• Positive Sentiment: Analyst support increased: Wells Fargo raised its price target from $61 to $67 and maintained an Overweight rating, citing Cognizant’s differentiated AI strategy. Morgan Stanley also increased its target, while William Blair initiated a Buy recommendation based on margin expansion, Financial Services growth and AI-driven demand. Cognizant in focus as Morgan Stanley ups price target
• Positive Sentiment: Revenue and demand trends: Second-quarter revenue rose 4.5% year over year to $5.48 billion, matching or exceeding expectations, with Financial Services described as a key growth area. Investors also continue to view CTSH as an attractively valued momentum stock, with earnings growth and AI opportunities supporting the long-term case. Cognizant Q2 Earnings Results
• Positive Sentiment: Shareholder return: Cognizant declared a quarterly dividend of $0.33 per share, representing an annualized yield of approximately 2.4%, adding support for income-focused investors.
• Neutral Sentiment: Mixed quarterly results: Adjusted EPS of $1.37 narrowly missed the $1.38 consensus, although revenue met expectations and exceeded the prior-year result. Management’s full-year EPS guidance is $5.70–$5.82, while reports indicate the 2026 sales outlook was trimmed. Cognizant Q2 2026 Earnings Call Summary
• Negative Sentiment: Valuation caution: TD Cowen raised its target from $47 to $54 but retained a Hold rating, leaving its target below the recent trading level. Higher interest costs also pressured quarterly earnings.

Cognizant Technology Solutions Profile

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.