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.
🔹 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. Cognizant’s deepening partnerships with firms like Nvidia and Docusign are also strengthening its position in the digital transformation arena.
🔹 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.
💰 Dividend Fundamentals
💠 Cognizant pays an annual dividend of $1.24 per share, translating to a yield of around 1.71%.
💠 The company has a strong history of dividend growth, averaging 8.9% annually over the past five years.
💠 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.
📊 Cognizant’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.