Morgan Stanley upgraded NASDAQ:CTSH to “Overweight” with a stock price of $86.20.
Cognizant reported non-GAAP earnings of $1.21 per share, surpassing estimates and indicating a positive profitability trend.
The company’s revenues reached $5.08 billion, with a year-over-year growth of 6.8%, driven by demand for digital transformation services and AI integration.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a leading provider of IT services, including digital transformation, AI integration, and sector-specific solutions. The company competes with other tech giants like Accenture and Infosys. On February 10, 2025, Morgan Stanley upgraded CTSH to “Overweight,” with the stock priced at $86.20 at the time of the announcement.
Cognizant’s recent financial performance has been strong. In the fourth quarter of 2024, the company reported non-GAAP earnings of $1.21 per share, surpassing the Zacks Consensus Estimate by 8.04% and marking a 2.5% increase from the previous year. This indicates a positive trend in the company’s profitability.
The company’s revenues for the same quarter reached $5.08 billion, exceeding expectations by 0.49% and showing a 6.8% year-over-year growth. This growth was driven by strong demand for digital transformation services and AI integration. Acquisitions also played a significant role, contributing 450 basis points to the top-line growth.
Cognizant’s bookings over the trailing 12 months rose by 3% year over year to $27.1 billion, with a book-to-bill ratio of approximately 1.4 times. This ratio indicates that the company is securing more business than it is delivering, which is a positive sign for future revenue. The company secured 10 large deals during the quarter, an increase from seven in the previous year, totaling 29 large deals for the year.
Currently, CTSH is trading at $86.20, reflecting a decrease of 1.02% or $0.89. The stock has traded between a low of $85.80 and a high of $87.35 today. Over the past year, CTSH has reached a high of $87.61 and a low of $63.79. The company has a market capitalization of approximately $42.74 billion, with a trading volume of 3,837,233 shares on the NASDAQ exchange.
