Cognizant Technology Solutions Corporation (NASDAQ:CTSH) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Cognizant Technology Solutions Corporation (NASDAQ:CTSH) had a good week, as its shares rose 5.2% to close at US$87.09 following the release of its full-year results. Cognizant Technology Solutions reported in line with analyst predictions, delivering revenues of US$20b and statutory earnings per share of US$4.51, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cognizant Technology Solutions after the latest results.

See our latest analysis for Cognizant Technology Solutions

Taking into account the latest results, the most recent consensus for Cognizant Technology Solutions from 24 analysts is for revenues of US$20.6b in 2025. If met, it would imply an okay 4.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 10% to US$4.99. In the lead-up to this report, the analysts had been modelling revenues of US$20.9b and earnings per share (EPS) of US$4.98 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$86.70, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Cognizant Technology Solutions, with the most bullish analyst valuing it at US$100.00 and the most bearish at US$71.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.5% growth on an annualised basis. That is in line with its 3.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.4% per year. So it's pretty clear that Cognizant Technology Solutions is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Cognizant Technology Solutions' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Cognizant Technology Solutions going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.