With a market cap of $35.1 billion, Cognizant Technology Solutions Corporation (CTSH) is a professional services company that provides consulting and technology, and outsourcing services in North America, Europe, and internationally. Headquartered in Teaneck, New Jersey, the company operates through four segments: Financial Services; Health Sciences; Products and Resources; and Communications, Media and Technology.

CTSH is expected to report its Q1 earnings on Wednesday, Apr. 30, after the market closes. Ahead of the event, analysts expect CTSH to report an EPS of $1.19 per share, up 6.3% from a profit of $1.12 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in all of the past four quarters, which is notable. Its EPS of $1.21 in the recent quarter surpassed the analysts’ expectations by 8%.

For the current year, analysts expect CTSH to report an EPS of $4.96, up 4.4% from $4.75 in fiscal 2024. Looking ahead, analysts expect its earnings to surge 7.1% year-over-year to $5.31 per share in fiscal 2026.

Over the past year, CTSH shares surged 6.8%, underperforming the S&P 500 Index’s ($SPX) 8.2% gains but outperforming the Technology Select Sector SPDR Fund’s (XLK) 3.7% returns over the same time frame.

CTSH shares jumped marginally following its Q4 earnings release on Feb. 5. The company reported a 6.8% year-over-year increase in its revenue, which amounted to $5.1 billion. Additionally, its adjusted operating margin grew by 20 basis points year-over-year to 15.3% and pushed its EPS to surpass the consensus estimates. Looking ahead, CTSH expects its revenue growth for fiscal 2025 to be in the range of 3.5% to 6%.

Moreover, analysts remain skeptical about CTSH stock’s future prospects, with a "Hold" rating overall. Among 23 analysts covering the stock, four recommend a “Strong Buy” and 19 suggest a “Hold.” Its mean price of $88.68 implies a premium of 23% from its prevailing price level.