Susquehanna has upgraded Cognizant Technology Solutions (NASDAQ: CTSH) from “Neutral” to “Positive,” with a new price target of $90. This follows a strong Q1 2025 earnings report, where adjusted EPS came in at $1.23, beating expectations of $1.19. Revenue also exceeded projections, reaching $5.12 billion compared to the estimated $5.06 billion.

๐Ÿ”น The company’s full-year revenue forecast has been revised upward, driven by growing demand in AI-enabled services. Key sectors fueling this growth include healthcare and financial services. Cognizantโ€™s deepening partnerships with firms like Nvidia and Docusign are also strengthening its position in the digital transformation arena.

๐Ÿ”น Earlier in April, Susquehanna had revised its target to $77 from $82, holding a Neutral stance due to concerns about visibility into future performance. However, the recent financial strength and strategic direction have clearly prompted a more optimistic reassessment.

๐Ÿ’ฐ Dividend Fundamentals

๐Ÿ’  Cognizant pays an annual dividend of $1.24 per share, translating to a yield of around 1.71%.

๐Ÿ’  The company has a strong history of dividend growth, averaging 8.9% annually over the past five years.

๐Ÿ’  With a payout ratio of just 25%, there’s ample room for future increases, reflecting a balanced approach to rewarding shareholders while reinvesting in innovation.

๐Ÿ“Š Cognizantโ€™s upgrade reflects its successful pivot toward high-demand, high-margin digital solutions, and its consistent delivery of shareholder value through both capital appreciation and dividends.