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With a market cap of $37.3 billion, Cognizant Technology Solutions Corporation (CTSH) is a leading professional services company providing consulting, technology, and outsourcing solutions. Headquartered in Teaneck, New Jersey, its operations span various countries in the Americas, Europe, the Middle East, Indo-Pacific, and Africa. CTSH is expected to announce its Q4 earnings after the market closes on Tuesday, Feb. 4.
Ahead of the event, analysts expect CTSH to report a profit of $1.13 per share, down 4.2% from $1.18 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. It posted an EPS of $1.25 in the previous quarter, exceeding the consensus estimate by 9.7%.
For fiscal 2024, analysts expect CTSH to report an adjusted EPS of $4.66, up 2.4% from $4.55 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 6.7% year-over-year to $4.97.
Over the past year, the tech stock has surged 2.7%, struggling to keep up with the S&P 500 Index’s ($SPX) 21.8% rise and the Technology Select Sector SPDR Fund’s (XLK) 20% return over the same time frame.
On Oct. 30, CTSH saw a 1.5% dip in its stock after posting its Q3 earnings. The company delivered an adjusted EPS of $1.25, beating Wall Street's forecast of $1.14 and achieving a 7.8% year-over-year growth. Revenue totaled $5.04 billion, slightly above the $5 billion anticipated by analysts, with a 3% increase compared to the prior year.
The consensus opinion on CTSH stock is cautiously bullish, with an overall “Moderate Buy” rating, a step up from “Hold” a month ago. Out of the 24 analysts covering the stock, five recommend “Strong Buy” and 19 advise a “Hold” rating.
The mean target price of $82.90 implies an upswing potential of 10.1% from the prevailing market prices.
