CTSH Cognizant Technology Solutions Corp. - Ordinary Shares - Class A

$CTSH Does Cognizant's cut to 4.0%–4.4% growth for 2026, with Q3 bookings down 7%, signal a slower 2027? ✂️ Cognizant, an IT services firm worth about $31.45B at $66.36 a share (16:00 ET Oct 28, 2026), cut its 2026 constant-currency revenue growth guide to 4.0%–4.4% from the 4.0%–5.5% it set July 29 📉 Q3 bookings fell 7% year over year after a 6% drop in Q2, which trimmed trailing-12-month bookings to $28.7B from $29.1B in June 📈 On the other side, Q3 revenue of $5.664B beat the midpoint of its $5.60–$5.68B guide, adjusted EPS rose 7.2% to $1.49, and the $5.72–$5.79 EPS guide (was $5.70–$5.82) keeps its midpoint, about 11.5 times earnings at $66.36 📅 Next: Q4 revenue against the $5.49–$5.57B guide and whether bookings stop falling; the $0.33 quarterly dividend is payable November 25, 2026 Source: PR Newswire release, Oct 29 + Q2 release, Jul 29

$CTSH Closed September with 6.224 billion dollars of remaining performance obligations in the 10-Q, and only about 35% of that is expected to turn into revenue within a year. Contract assets, revenue booked but not yet billed, climbed to 690 million dollars from 466 million dollars at the start of the year, so more of the work is sitting unbilled too.

$CTSH Our read was contrarian bullish as of 6 Oct 2026. The tape and short-term sentiment disagree, with the shares trading at $58.51 below the 20-day moving average of $59.59, the 50-day moving average of $58.88, and the 200-day moving average of $60.97. A MACD reading below its signal line, a Chaikin Money Flow of -0.34 showing firm distribution, and an MFI of 25 point to near-term selling pressure. Yet long-term fundamentals and long-term sentiment align with our view: institutions are net buyers with six of the ten largest 13F holders adding positions, and valuation sits at a cheap 10.2x forward adjusted P/E against $21.6B in trailing revenue, a 15.4% ROE, and GAAP operating margins of 15.9%. Near-term fundamentals sit with us on valuation, even as Q2 bookings fell 6% year on year and net debt reached $509.0M from buybacks and acquisitions. We would change our mind if bookings keep falling. (Disclosure: we're and this is our own research.)

$CTSH reported earnings before the open: adjusted EPS of $1.49 vs. $1.46 estimated, a beat of 2.1%. I used Stock Meadow to review the results.

$CTSH Q3 '26 Earnings Results & Recap • Reported GAAP EPS of $1.49 up 7.19% YoY • Reported revenue of $5.66B up 4.60% YoY • Cognizant expects full-year 2026 revenue of $22.05 to $22.14B, constant currency growth of 4.0% to 4.4%, Adjusted Operating Margin of approximately 16.1%, and Adjusted Diluted EPS of $5.72 to $5.79.

$CTSH is estimated to report earnings tomorrow before the open. I’m bullish heading into the report: CTSH has beaten EPS estimates in 7 of its last 8 reports, according to Stock Meadow.

$CTSH favors upside targeting 83.1 or higher within June-2026 rally after 7 swings correction ended at 37.08 low in weekly #bluebox area. As long as the pullback holds above 10.08.2026 low, the correction in 3, 7 or 11 swings should hold to extend above 83.1 as 3 swing bounce or continue rally in weekly. #Elliottwave #CTSH

$CTSH Adjusted operating margin reached 16.0%, up 40 basis points year over year. This suggests the company is improving profitability even amid cautious client spending.**

$CTSH In July 2026, Cognizant raised its full-year adjusted EPS guidance to $5.70–$5.82 and implying 8%–10% annual growth.^

$CTSH 🤝 Cognizant Technology Solutions Corporation entered into a definitive agreement to acquire DyFlex Solutions, an AI-led SAP transformation firm, to accelerate AI-led enterprise transformation for SAP clients in Australia and New Zealand. Selected from hundreds of headlines

$CTSH putting in a potential temp top stick today. Price likely to test back to the small gap below or the ma's. Base. Basing is healthy. I do have many levels of let it ride stops and one small slice might trigger today.

$CTSH Cognizant just got cut off from the US green card pipeline. The Labor Department suspended it from the PERM program on Thursday, along with Microsoft, Adobe, TCS, Infosys, Wipro, HCL, and Capgemini. The numbers the administration is citing: the eight companies have requested almost 3 million foreign workers since 2009, with over 230,000 H-1B approvals and over 100,000 permanent labor certifications. One level down: this is not the H-1B visa itself. PERM is the step where an employer sponsors a worker for a green card. Suspending it freezes the path from temporary to permanent, and it applies to pending applications too, not just new ones. That is a retention problem, not just a headline. Cognizant's model runs on experienced visa talent moving onshore; workers mid-pipeline now cannot convert. Context: eight days ago Cognizant was rallying 6% on Accenture's bookings strength, the AI-demand read. The constraint this week is not demand. It is labor supply.

U.S. Labor Secretary Keith Sonderling announced the suspension of Cognizant, along with major IT outsourcing firms including Infosys, Tata, Wipro, HCL and Capgemini, from the Permanent Labor Certification Program, alleging misuse of the system. The program is critical for technology services companies to recruit and retain skilled workers in the U.S., making the suspension a significant operational and reputational concern for Cognizant. The regulatory action comes despite several recent positive developments, including a five-year extension of an AI-enabled DevOps contract with Gilead Sciences, a cloud-based finance transformation partnership with aviation technology company SITA, and the launch of Cognizant Activate, a new business unit focused on AI adoption among mid-market companies. Wedbush recently reiterated its Outperform rating and $70 price target, but the analyst support failed to offset selling pressure triggered by the government action. $CTSH