
CTSH Stock Forecast & Price Target
CTSH Analyst Ratings
Bulls say
Cognizant Tech Solutions has demonstrated robust revenue growth, with Health Sciences revenue increasing by 10.4% year-over-year in constant currency, and overall revenue growth of 6.8% year-over-year on a reported basis. The company's bookings increased by 11% year-over-year, reaching a total of $27.1 billion, underscoring strong demand and successful contract acquisitions with the signing of 10 large deals in the latest quarter. Additionally, management guidance indicates anticipated operating margin expansion of 20 to 40 basis points, supported by advancements in AI and automation, which are likely to enhance profitability in future periods.
Bears say
Cognizant Tech Solutions faces a negative outlook primarily due to a marginal decline in blended utilization amidst the integration of its recent Belcan acquisition, indicating operational challenges. Furthermore, the company anticipates a deceleration in revenue growth driven by decreased global technology spending and continued subdued demand for discretionary IT services, which is compounded by macroeconomic headwinds. Lastly, despite solid quarterly results and effective management strategies, the initial organic growth forecast for fiscal year 2025 is below that of its large-cap IT services peers, raising concerns about its ability to accelerate revenue growth while maintaining a sustainable margin profile.
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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