JPMorgan Chase & Co. Has Lowered Expectations for Cognizant Technology Solutions (NASDAQ:CTSH) Stock Price

Cognizant Technology Solutions (NASDAQ:CTSH) had its target price decreased by equities research analysts at JPMorgan Chase & Co. from $74.00 to $55.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an “overweight” rating on the information technology service provider’s stock. JPMorgan Chase & Co.‘s target price would suggest a potential upside of 21.01% from the company’s current price.

A number of other research analysts have also recently weighed in on the stock. Morgan Stanley set a $44.00 price objective on shares of Cognizant Technology Solutions and gave the company an “equal weight” rating in a report on Tuesday, June 23rd. Citigroup reduced their target price on shares of Cognizant Technology Solutions from $55.00 to $45.00 and set a “neutral” rating on the stock in a report on Monday, July 13th. Evercore decreased their price target on shares of Cognizant Technology Solutions from $100.00 to $70.00 in a research report on Thursday, April 30th. Jefferies Financial Group cut their price objective on Cognizant Technology Solutions from $80.00 to $65.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Finally, The Goldman Sachs Group set a $75.00 price objective on Cognizant Technology Solutions in a research note on Wednesday, April 29th. Ten equities research analysts have rated the stock with a Buy rating and fourteen have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $62.00.

Cognizant Technology Solutions Price Performance

CTSH stock opened at $45.45 on Friday. The business’s fifty day moving average price is $47.14 and its 200 day moving average price is $59.67. Cognizant Technology Solutions has a 12-month low of $37.08 and a 12-month high of $87.03. The company has a current ratio of 2.23, a quick ratio of 2.23 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $21.54 billion, a PE ratio of 9.88, a P/E/G ratio of 0.99 and a beta of 0.87.

Cognizant Technology Solutions (NASDAQ:CTSH) last announced its earnings results on Wednesday, April 29th. The information technology service provider reported $1.40 EPS for the quarter, beating analysts’ consensus estimates of $1.33 by $0.07. The company had revenue of $5.41 billion during the quarter, compared to analysts’ expectations of $5.41 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.Cognizant Technology Solutions’s revenue for the quarter was up 5.8% on a year-over-year basis. During the same period last year, the business posted $1.23 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.630-5.770 EPS. On average, sell-side analysts anticipate that Cognizant Technology Solutions will post 5.7 EPS for the current year.

Cognizant Technology Solutions announced that its Board of Directors has authorized a share buyback 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 stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.

Hedge Funds Weigh In On Cognizant Technology Solutions

A number of institutional investors and hedge funds have recently modified their holdings of CTSH. Checchi Capital Advisers LLC grew its holdings in Cognizant Technology Solutions by 3.4% during the fourth quarter. Checchi Capital Advisers LLC now owns 3,852 shares of the information technology service provider’s stock worth $320,000 after purchasing an additional 127 shares during the period. Unison Advisors LLC increased its position in Cognizant Technology Solutions by 0.5% during the fourth quarter. Unison Advisors LLC now owns 30,095 shares of the information technology service provider’s stock worth $2,498,000 after buying an additional 138 shares during the last quarter. TD Waterhouse Canada Inc. raised its stake in Cognizant Technology Solutions by 7.2% in the fourth quarter. TD Waterhouse Canada Inc. now owns 2,130 shares of the information technology service provider’s stock valued at $177,000 after buying an additional 143 shares during the period. Security National Bank of SO Dak lifted its position in shares of Cognizant Technology Solutions by 0.6% in the second quarter. Security National Bank of SO Dak now owns 24,635 shares of the information technology service provider’s stock valued at $1,922,000 after buying an additional 150 shares during the last quarter. Finally, Cidel Asset Management Inc. lifted its position in shares of Cognizant Technology Solutions by 3.0% in the fourth quarter. Cidel Asset Management Inc. now owns 5,535 shares of the information technology service provider’s stock valued at $459,000 after buying an additional 163 shares during the last quarter. Institutional investors and hedge funds own 92.44% of the company’s stock.

Cognizant Technology Solutions News Summary

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

• Positive Sentiment: Cognizant announced a strategic partnership with Gulf Edge to accelerate enterprise AI adoption in Southeast Asia, including Thailand. The deal highlights CTSH’s push into higher-growth AI services and could support longer-term revenue opportunities. Article Title
• Positive Sentiment: Investors appear to be buying ahead of Cognizant’s second-quarter earnings report on July 29, leaning on the company’s first-quarter momentum, which included revenue growth, strong bookings, and improved margin guidance. Article Title
• Positive Sentiment: Wall Street still broadly remains constructive: JPMorgan cut its price target to $55 from $74, but kept an overweight rating, while other recent analyst calls have been positive. That suggests expectations may be reset rather than deteriorating. Article Title
• Neutral Sentiment: Short-interest data did not show a meaningful change, so there is little evidence that the latest move is being driven by a short squeeze or bearish positioning.
• Negative Sentiment: The JPMorgan target cut reflects lower near-term upside expectations, and the stock remains well below its prior highs, which may temper enthusiasm if upcoming earnings disappoint.
• Negative Sentiment: Recent insider selling and mixed institutional ownership trends could be a modest headwind for sentiment, even though these factors do not appear to be the main driver today.

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.