Cognizant Technology Solutions Corporation (CTSH), based in Teaneck, New Jersey, is a prominent professional services firm offering consulting, technology, and outsourcing solutions. Valued at a market cap of $36.8 billion, the company operates across multiple regions, including the Americas, Europe, the Middle East, Asia-Pacific, and Africa.

Shares of the IT services behemoth have underperformed the broader market over the past year. CTSH stock has edged up just 14.9% over the past 52 weeks, compared to the S&P 500 Index’s ($SPX) 35.2% gains over the same time frame. In 2024, CTSH stock plunged 1.2%, while SPX returned 20.1% on a YTD basis.

Narrowing the focus, Cognizant has also trailed the Information Technology ETF Vanguard’s (VGT) 41.5% gains over the past 52 weeks and 21.2% returns on a YTD basis.

On Oct. 30, CTSH released its Q3 earnings and its stock dipped 1.5%. It reported third-quarter earnings of $582 million, equating to net income of $1.25 per share when adjusted for non-recurring costs. These results exceeded Wall Street's expectations, where analysts had estimated earnings of $1.14 per share. The company also posted revenue of $5.04 billion, surpassing the forecast of $5 billion. 

For the upcoming quarter, CTSH expects revenue between $5 billion and $5.1 billion and projects full-year earnings of $4.63 to $4.67 per share, with total revenue ranging from $19.7 billion to $19.8 billion.

For the current fiscal year, ending in December, analysts expect Cognizant to report an EPS growth of 2.4% to $4.66. The company has surpassed the consensus EPS estimates in each of the past four quarters.

Among the 26 analysts covering the CTSH stock, the consensus rating is “Hold.” That’s based on five “Strong Buy” ratings and 21 “Holds.” 

This configuration is slightly more bullish than three months ago, with four analysts recommending a “Strong Buy.”

On Nov. 1, Mizuho Financial Group, Inc. (MFG) analyst Dan Dolev reaffirmed a “Neutral” rating on CTSH and raised the price target from $83 to $84.

CTSH’s mean price target of $79.91 represents a premium of 7.1% to current price levels. The Street-high target of $90 indicates a potential upside of 20.6% from current price levels.

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On the date of publication, Kritika Sarmah 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.