Cognizant Technology Solutions Corporation Announces Quarterly Dividend of $0.33 (NASDAQ:CTSH)

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) declared a quarterly dividend on Wednesday, July 29th. Shareholders of record on Tuesday, August 18th will be paid a dividend of 0.33 per share by the information technology service provider on Tuesday, August 25th. This represents a c) annualized dividend and a yield of 2.4%. The ex-dividend date is Tuesday, August 18th.

Cognizant Technology Solutions has increased its dividend by an average of 0.1%annually over the last three years and has raised its dividend annually for the last 6 consecutive years. Cognizant Technology Solutions has a payout ratio of 24.3% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Cognizant Technology Solutions to earn $6.20 per share next year, which means the company should continue to be able to cover its $1.32 annual dividend with an expected future payout ratio of 21.3%.

Cognizant Technology Solutions Stock Performance

NASDAQ CTSH traded up $5.71 during trading on Wednesday, reaching $56.02. The company’s stock had a trading volume of 18,262,077 shares, compared to its average volume of 8,336,856. Cognizant Technology Solutions has a twelve month low of $37.08 and a twelve month high of $87.03. The firm has a market cap of $26.54 billion, a price-to-earnings ratio of 12.18, a P/E/G ratio of 1.03 and a beta of 0.87. The business’s fifty day moving average price is $47.04 and its 200-day moving average price is $59.01. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.23 and a current ratio of 2.23.

Cognizant Technology Solutions (NASDAQ:CTSH) last released its quarterly earnings results on Wednesday, July 29th. The information technology service provider reported $1.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.38 by ($0.01). The company had revenue of $5.48 billion for the quarter, compared to analysts’ expectations of $5.48 billion. Cognizant Technology Solutions had a return on equity of 17.50% and a net margin of 10.41%.The business’s quarterly revenue was up 4.5% compared to the same quarter last year. During the same period in the prior year, the business earned $1.31 EPS. Cognizant Technology Solutions has set its FY 2026 guidance at 5.700-5.820 EPS. As a group, analysts anticipate that Cognizant Technology Solutions will post 5.7 EPS for the current fiscal year.

Cognizant Technology Solutions declared that its Board of Directors has authorized a stock repurchase plan on Monday, May 18th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the information technology service provider to purchase up to 9% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Cognizant Technology Solutions Company Profile

Cognizant Technology Solutions (NASDAQ: CTSH) is a global professional services company that provides information technology, consulting and business process services to large enterprises. Its core offerings include digital engineering, application development and maintenance, cloud migration and managed services, data analytics and artificial intelligence, cybersecurity, and industry-specific solutions. Cognizant works with clients to design and implement technology-enabled transformations that address customer experience, operational efficiency and new product and service delivery.

Founded in the 1990s and headquartered in Teaneck, New Jersey, Cognizant has grown into a multinational organization with delivery centers and operations across the Americas, Europe, and Asia.