
CTSH Stock Forecast & Price Target
CTSH Analyst Ratings
Bulls say
Cognizant Technology Solutions has demonstrated a robust growth trajectory, with a reported revenue increase of 7.5% year-over-year and an impressive 8.2% growth in constant currency, supported by a favorable foreign exchange impact that contributed an additional $200 million to revenue. The company reported an uptick in annual contract value (ACV) year-over-year, alongside larger sizes of deals being signed, which indicates a strengthening demand for its services. For fiscal year 2025, Cognizant anticipates continuing this momentum with projected revenue between $20.5 billion and $21 billion, reflecting a year-over-year growth rate of 3.9% to 6.4%, along with an anticipated increase in earnings per share from prior forecasts.
Bears say
Cognizant Tech Solutions is currently facing significant challenges reflected in a 7% year-over-year decline in 1Q bookings, exacerbated by diminished client decision-making and discretionary IT spending amid ongoing macroeconomic uncertainties. Additionally, the company experienced an unexpected reduction in headcount and gross margin contraction, while the overall demand for discretionary IT services remains subdued, suggesting a muted growth outlook for FY25 relative to large-cap IT services peers. Furthermore, the potential impact of wage inflation on operational costs could compromise margins and profitability, adding further pressure to the firm's financial health.
This aggregate rating is based on analysts' research of Cognizant Technology Solutions and is not a guaranteed prediction by Public.com or investment advice.
CTSH Analyst Forecast & Price Prediction
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