
CTSH Stock Forecast & Price Target
CTSH Analyst Ratings
Bulls say
Cognizant Tech Solutions demonstrated strong performance in its Health Sciences segment, achieving a year-over-year constant currency revenue growth of 10.4%, while the overall revenue increased by 6.7% in constant currency terms. Bookings for the quarter rose by 11% year-over-year, contributing to a trailing twelve-month (TTM) bookings total of $27.1 billion, reflecting a solid book-to-bill ratio of 1.4. Additionally, the company is poised for enhanced operating margin growth of 20 to 40 basis points, supported by advancements in AI and automation, reinforcing a positive outlook for the company’s financial trajectory.
Bears say
Cognizant Technology Solutions faces a negative outlook primarily due to a slight decrease in blended utilization amid the integration of its recent acquisition, Belcan, which has led to a turbulent demand environment for IT services. Revenue growth is projected to decelerate as global technology spending contracts due to macroeconomic challenges and a lack of traction in next-generation services. Furthermore, a 1% sequential decline in headcount reflects the company's need to right-size its workforce, pointing to subdued demand for discretionary IT services, which may hinder Cognizant’s ability to meet growth expectations in the near term.
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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