Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Announces Quarterly Dividend of $0.33

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) announced a quarterly dividend on Wednesday, February 4th. Investors of record on Wednesday, February 18th will be given a dividend of 0.33 per share by the information technology service provider on Thursday, February 26th. This represents a c) annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Wednesday, February 18th. This is a 6.5% increase from Cognizant Technology Solutions’s previous quarterly dividend of $0.31.

Cognizant Technology Solutions has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 6 consecutive years. Cognizant Technology Solutions has a dividend payout ratio of 22.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cognizant Technology Solutions to earn $5.35 per share next year, which means the company should continue to be able to cover its $1.24 annual dividend with an expected future payout ratio of 23.2%.

Cognizant Technology Solutions Stock Up 3.0%

CTSH stock traded up $2.21 during mid-day trading on Wednesday, hitting $76.71. 11,792,354 shares of the company were exchanged, compared to its average volume of 5,153,905. The firm has a fifty day simple moving average of $82.92 and a 200 day simple moving average of $74.98. The company has a market capitalization of $37.02 billion, a PE ratio of 17.80, a price-to-earnings-growth ratio of 1.59 and a beta of 0.95. Cognizant Technology Solutions has a twelve month low of $65.15 and a twelve month high of $90.82. The company has a current ratio of 2.36, a quick ratio of 2.36 and a debt-to-equity ratio of 0.04.

Cognizant Technology Solutions (NASDAQ:CTSH) last issued its quarterly earnings results on Wednesday, February 4th. The information technology service provider reported $1.35 EPS for the quarter, topping the consensus estimate of $1.32 by $0.03. The business had revenue of $5.33 billion for the quarter, compared to analysts’ expectations of $5.31 billion. Cognizant Technology Solutions had a net margin of 10.20% and a return on equity of 17.00%. The company’s quarterly revenue was up 4.9% compared to the same quarter last year. During the same quarter last year, the company posted $1.21 earnings per share. Cognizant Technology Solutions has set its FY 2026 guidance at 5.560-5.700 EPS. On average, research analysts forecast that Cognizant Technology Solutions will post 4.98 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. William Blair upgraded Cognizant Technology Solutions from a “market perform” rating to an “outperform” rating in a report on Friday, November 21st. The Goldman Sachs Group reiterated a “neutral” rating and set a $84.00 target price on shares of Cognizant Technology Solutions in a research note on Wednesday, October 29th. Susquehanna restated a “positive” rating and issued a $98.00 price target on shares of Cognizant Technology Solutions in a research report on Friday, January 23rd. Guggenheim reaffirmed a “buy” rating and issued a $100.00 price target (up from $95.00) on shares of Cognizant Technology Solutions in a report on Wednesday, January 28th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Cognizant Technology Solutions from $89.00 to $92.00 and gave the company an “overweight” rating in a research report on Thursday, October 30th. Nine equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $90.28.

Cognizant Technology Solutions Company 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.