Buy now: earnings beat + raised dividend + improving Street targets create a near-term demand catalyst despite weak technicals.
Setup favors a bounce-trade: price ($77.32) is close to key support (S1 $74.73) after a strong regular-session pop, with upside back toward pivot ($80.02) then ~$85.31.
Options positioning is defensive (put-heavy) and IV is elevated, which often accompanies post-earnings volatility and can fuel sharp mean-reversion moves upward if selling pressure fades.
Technical Analysis
Trend/momentum: MACD histogram at -1.12 and negatively expanding signals bearish momentum still in control.
RSI(6) at 26.53 indicates short-term oversold conditions (mean-reversion/bounce potential).
Moving averages are converging, consistent with a transition zone rather than a clean uptrend.
Key levels: Support S1 ~$74.73 (then S2 ~$71.46). Resistance pivot ~$80.02, then R1 ~$85.31 (R2 ~$88.58).
Price action context: Regular market +3.42% to $77.32 while pre-market is -1.21%, suggesting post-earnings volatility and some profit-taking/price digestion.
Options Data
Bearish
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
Sentiment: Put-heavy open interest (1.35) and put-heavy volume (1.34) imply cautious/bearish positioning or hedging demand.
Volatility: IV percentile 95.62 is extremely elevated; 30D IV 34.76 vs HV 39.03 suggests options are priced rich but not extreme versus realized.
Flow/participation: Today’s option volume is ~17.25x the 30D average (event-driven spike around earnings).
Technical Summary
Sell
8
Buy
3
Positive Catalysts
earnings beat: non-GAAP EPS $1.35 vs $1.32 est; revenue $5.33B, +4.9% YoY and above expectations.
Neutral/Negative Catalysts
Technical momentum remains bearish (MACD expanding below zero), so rallies can fail below resistance (~$80-$85).
Options market is defensively positioned (put/call > 1 on both OI and volume), implying skepticism and potential for renewed selling.
No notable supportive positioning signal from hedge funds/insiders (both reported as Neutral).
Politicians/influential figures: no recent congress trading data available (no visible catalyst from political buying/selling).
Financial Performance
Latest quarter season in the provided financial snapshot: 2025/Q3 showed revenue up +7.36% YoY to $5.415B, but profitability fell sharply (Net Income -52.92% YoY; EPS -52.14% YoY) and gross margin dipped (-1.32% YoY).
More current earnings catalyst (QDEC 2025 / Q4): adjusted EPS +11.5% YoY to $1.35 with revenue +4.9% YoY to $5.33B, indicating profitability improved versus the weaker Q3 snapshot.
Overall growth trend: FY2025 revenue +7.0% YoY suggests steadier top-line momentum than the market may have priced in.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent trend: clear upward revision cycle—multiple firms raised price targets (Citi to $86; TD Cowen to $84; BMO to $96; Susquehanna to $98; Guggenheim to $100) and upgrades/initiations skew bullish (Deutsche Bank upgraded to Buy; Berenberg initiated Buy; William Blair upgraded to Outperform).
Wall Street pros: viewed as an IT services "winner" with share gains, vendor consolidation tailwinds, and AI-workload/AI-transformation monetization opportunities.
Wall Street cons: some firms remain Neutral/Hold/Market Perform and explicitly want a better entry point, implying valuation/near-term setup concerns and sensitivity to discretionary deal softness.
Wall Street analysts forecast CTSH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CTSH is 87.18 USD with a low forecast of 80 USD and a high forecast of 100 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
Wall Street analysts forecast CTSH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CTSH is 87.18 USD with a low forecast of 80 USD and a high forecast of 100 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
10 Hold
0 Sell
Moderate Buy
Current: 76.840
Low
80
Averages
87.18
High
100
Current: 76.840
Low
80
Averages
87.18
High
100
Morgan Stanley
Equal Weight
maintain
$80 -> $82
AI Analysis
2026-02-05
New
Reason
Morgan Stanley
Price Target
$80 -> $82
AI Analysis
2026-02-05
New
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Cognizant to $82 from $80 and keeps an Equal Weight rating on the shares. With large deal ramps across Financial Services and Health Sciences, the firm thinks Cognizant is benefitting from vendor consolidation and argues that operating margin expansion "remains compelling."
TD Cowen
Bryan Bergin
Hold
downgrade
$86 -> $85
2026-02-05
New
Reason
TD Cowen
Bryan Bergin
Price Target
$86 -> $85
2026-02-05
New
downgrade
Hold
Reason
TD Cowen analyst Bryan Bergin lowered the firm's price target on Cognizant to $85 from $86 and keeps a Hold rating on the shares. The firm said they posted a fine quarter, led by BFS, bookings and SG&A cost control. FY26 guide landed lighter versus buyside view, though better demand backdrop exists, including discretionary thawing (BFSI-led) that implies guide conservatism.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for CTSH
