Cognizant Technology Solutions Corporation

(NASDAQ Global Select)
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Bullish +65

Deutsche Bank raises target for Cognizant stock to USD 70.00

Analyst upgrade Earnings report Financial outlook AI-generated analysis

πŸ“ˆ Cognizant reported Q2 revenue of USD 5.48 billion, up 4.50% year over year.

πŸ’° Adjusted diluted earnings per share reached USD 1.37, a 4.60% increase year over year.

🎯 Deutsche Bank raised its price target for Cognizant stock to USD 70.00 and maintained a Buy rating.

πŸ“… Management expects full-year 2026 revenue between USD 22.04 billion and USD 22.35 billion.

πŸ“ˆ Adjusted operating margin expanded to 16.00% in the second quarter.

πŸ’‘ Project Leap is expected to generate USD 200 million to USD 300 million in savings for 2026.

πŸš€ Full-year adjusted earnings per share guidance was raised to USD 5.70 to USD 5.82.

πŸ“‰ Higher interest expense linked to acquisition funding and share repurchases weighed on GAAP EPS.

🏒 Cognizant stock trades at a market capitalization of approximately USD 27.4 billion.

πŸ” The company continues reinvesting in training, AI infrastructure, and delivery tools.

Bullish Signals
  • Deutsche Bank raised its price target for Cognizant stock to USD 70.00 while maintaining a Buy rating.
  • Adjusted diluted earnings per share grew 4.60% year over year to reach USD 1.37 in the second quarter.
  • Management raised full-year adjusted earnings per share guidance to USD 5.70 to USD 5.82, implying 8-10% growth.
  • Adjusted operating margin expanded to 16.00% in Q2, demonstrating improved profitability efficiency.
  • Project Leap is expected to generate significant savings of USD 200 million to USD 300 million in 2026.
  • Cognizant stock price increased 1.07% following the earnings report and analyst upgrade.
Risk Factors
  • Higher interest expense linked to acquisition funding and share repurchases weighed on GAAP diluted earnings per share.
  • Revenue growth of 4.50% is described as moderate compared to the stronger adjusted earnings growth.
Full Analysis
Cognizant Technology Solutions Corporation reported second-quarter revenue of USD 5.48 billion, representing a 4.50% year-over-year increase. The company achieved GAAP diluted earnings per share of USD 1.36 and adjusted diluted earnings per share of USD 1.37, which marked a 4.60% increase compared to the prior year. Management provided full-year guidance expecting revenue between USD 22.04 billion and USD 22.35 billion. Adjusted operating margins are projected to range from 16.00% to 16.20%, while adjusted earnings per share guidance was raised to a range of USD 5.70 to USD 5.82, implying growth between 8.00% and 10.00%. Analyst sentiment remains positive following Deutsche Bank's recent action to raise its price target for Cognizant stock from USD 65.00 to USD 70.00 while maintaining a Buy rating. The company is implementing Project Leap, which is expected to generate savings of USD 200 million to USD 300 million in 2026. Despite moderate revenue growth, the operating picture supports the earnings outlook through cost actions and a lower share count resulting from share repurchases. Higher interest expenses linked to acquisition funding and buybacks weighed on reported earnings per share, but the adjusted metrics remain strong.