Cognizant Technology Solutions Shows Strong Performance Against Market Benchmarks
Cognizant Technology Solutions Corporation (CTSH), based in Teaneck, New Jersey, is a professional services firm offering consulting, technology, and outsourcing solutions. With a market capitalization of $39.2 billion, the company specializes in technology strategy consulting, complex systems development, enterprise software package implementation, maintenance, data warehousing, and business intelligence.
Outperformance Compared to Market Indices
Over the past year, shares of Cognizant have significantly outperformed the broader market. CTSH has risen by 18.5%, while the S&P 500 Index ($SPX) has gained approximately 8.6%. As of 2025, CTSH’s stock increased by 3%, contrasting with the SPX’s 3.8% decline year-to-date (YTD).
Furthermore, comparing CTSH to the Vanguard Information Technology Index ETF (VGT) reveals notable performance discrepancies. While VGT has risen about 10.9% in the last year, CTSH’s YTD gains surpass the ETF’s decline of 8.1% over the same period.
Q1 Results Exceed Expectations
On April 30, Cognizant’s shares edged up slightly following the release of its Q1 results. The adjusted earnings per share (EPS) of $1.23 surpassed Wall Street expectations of $1.19. The company’s revenue reached $5.12 billion, exceeding forecasts of $5.07 billion. For the full year, CTSH anticipates adjusted EPS between $4.98 and $5.14 and expects revenue in the range of $20.5 billion to $21 billion.
Analyst Projections for the Current Fiscal Year
For this fiscal year, which concludes in December, analysts project CTSH’s EPS to grow by 6.5% to $5.06 on a diluted basis. The company has a solid earnings surprise history, having outperformed consensus estimates in each of the last four quarters.
Analyst Recommendations and Price Targets
Among the 23 analysts covering CTSH, the consensus rating is a “Moderate Buy,” based on five “Strong Buy” ratings and 18 “Hold” ratings. This is a slightly more optimistic outlook than a month ago when the consensus was an overall “Hold” with four analysts suggesting a “Strong Buy.”
On May 5, Barclays PLC (BCS) analyst Ramsey El Assal reiterated a “Buy” rating for CTSH, with a price target of $90, which implies a potential upside of 13.7% from current levels. The mean price target of $88.16 indicates an 11.4% premium to CTSH’s current price. The highest price target of $104 suggests significant upside potential of 31.4%.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
