BI Asset Management Fondsmaeglerselskab A S increased its stake in Cognizant Technology Solutions Corporation (NASDAQ:CTSH – Free Report) by 281.1% during the third quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 103,289 shares of the information technology service provider’s stock after acquiring an additional 76,185 shares during the quarter. BI Asset Management Fondsmaeglerselskab A S’s holdings in Cognizant Technology Solutions were worth $6,928,000 ...

Top information technology (IT) services companies are racing to deploy artificial intelligence agents from specialist firms across their domains, at a time when the debut of advanced AI tools threatens to eat their lunch. Four of the country’s largest IT outsourcers—Cognizant Technology Solutions Corp, Infosys Ltd, HCL Technologies Ltd, and Wipro Ltd—are partnering with smaller firms and adopting their AI agents for software development, data analysis and marketing, highlighting the business transformation ...

Key Takeaways CTSH posted Q4 non-GAAP EPS of $1.35, up 11.6% year over year, while revenues of $5.33B topped estimates. CTSH bookings rose 9% in Q4 to support a 1.3x book-to-bill, including 12 large deals and two mega deals. CTSH lifted its outlook, forecasting Q1 revenue growth up to 6.3% and 2026 revenues of $22.14-$22.66B. Cognizant Technology Solutions (CTSH) reported non-GAAP earnings of $1.35 per share in the fourth quarter of 2025, which beat the Zacks Consensus Estimate by 1.96% and increased 11.6% ...

The partnership advances Cognizant's strategy as an AI builder: creating purpose-built, enterprise-grade solutions that turn the potential of AI into real business value. Cognizant brings together frontier AI platforms, deep industry expertise and the right combination of IP and services to modernize its own operations and help clients transform complex, regulated environments with a focus on responsible adoption, security and operational integrity. Partnership combines Palantir Foundry and AIP with Cogniza ...

Market Overview - Stock futures are mixed, showing signs of stabilization after a downturn in software and AI-related technology stocks, leading some investors to view the selloff as a buying opportunity [1] - Defensive sectors and commodity-linked assets are gaining interest, particularly as gold prices have risen above $5,000 per ounce, indicating strong demand for safe havens amid market uncertainty [1] Pre-Market Trading - In pre-market trading, S&P 500 futures rose by 0.11%, Nasdaq futures fell by 0.34%, and Dow futures increased by 0.22% [2] Company Movements - Silicon Labs (SLAB) shares surged by 49% following a definitive agreement for acquisition by Texas Instruments (TXN) at $231 per share in an all-cash transaction [3] - Texas Instruments (TXN) shares declined by 3% after announcing the acquisition of Silicon Labs [6] - Other notable stock movements include Eli Lilly (LLY) up 9%, Johnson Controls (JCI) up 5%, and AMD (AMD) down 10% [6]

Cognizant emphasized large-deal momentum as a key driver. Kumar said fourth-quarter bookings grew 9% year-over-year and delivered a record quarterly total contract value. The company signed 12 large deals with total contract value (TCV) of $100 million or greater , including one deal valued at more than $1 billion . Management said the value of large-deal wins in Q4 was 60% higher than a year ago.Dalal said fourth-quarter adjusted diluted EPS was $1.35 , up 12% year-over-year, and full-year adjusted EPS was ...

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $5.3 billion, representing a 3.8% year-over-year growth in constant currency, all organic [30][41] - Full-year revenue reached $21.1 billion, growing 6.4% in constant currency, surpassing the $20 billion mark [6][30] - Adjusted Operating Margin improved to 16%, up 30 basis points year-over-year, with a full-year adjusted operating margin of 15.8%, exceeding guidance [6][39] - Adjusted diluted EPS for Q4 was $1.35, up 12% year-over-year, leading to a full-year EPS of $5.28, an 11% increase from the prior year [41][45] Business Line Data and Key Metrics Changes - Financial Services segment led growth with a 9% year-over-year increase in constant currency for Q4 and 7% for the full year, marking the highest annual level since 2016 [5][32] - Health Sciences segment grew at 6%, outperforming the company average, driven by strong demand for administrative and patient care solutions [86] - BPO business experienced a 9% year-over-year growth, indicating strong demand for AI-enabled operations [80][82] Market Data and Key Metrics Changes - North America was the standout region with over 4% year-over-year growth in constant currency, primarily driven by Financial Services and healthcare [37] - Europe grew 2% in constant currency, with healthy growth in Financial Services and Life Sciences [38] - The Rest of World segment grew in line with the total company, driven by the Middle East [38] Company Strategy and Development Direction - The company aims to bridge the AI velocity gap, focusing on transforming AI technology into measurable returns for clients [11] - Cognizant's strategy includes a three-vector approach to capture demand, emphasizing AI-led productivity and the development of new agentic software [12][13] - The company plans to maintain its position in the industry's winner's circle by continuing to innovate and expand its AI capabilities [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in 2026, supported by a strong pipeline of large deals and a focus on AI integration [31][67] - The operating environment remains complex, but the company views it as an opportunity to capture wallet share in large deals and help clients reinvest savings into innovation [32] - Management highlighted the importance of maintaining productivity and cost discipline to navigate market challenges [59] Other Important Information - The company returned $2 billion to shareholders through dividends and share repurchases in 2025 [10][41] - The acquisition of 3Cloud was completed, adding over 1,200 Azure specialists to enhance capabilities in AI and cloud services [10] - The company is actively evaluating potential strategic acquisitions and a possible secondary listing in India [46] Q&A Session Summary Question: Insights on AI's impact on revenue and package implementation - Management noted that AI provides opportunities for increased total addressable spend and emphasized the need for reimagining processes to integrate new technologies effectively [50][54] Question: Gross margin dynamics for 2026 - Management indicated that Q4's gross margin decline was primarily due to higher variable compensation, but they expect to maintain productivity and manage costs effectively in 2026 [56][59] Question: Confidence in large deal growth for 2026 - Management expressed optimism about the strong pipeline of large deals and the potential for timely deal ramps, expecting acceleration in growth during the year [68][69] Question: Risks and opportunities of fixed-price contracts - Management explained that fixed-price contracts place delivery risk on the service provider, but they have a robust process to monitor performance and ensure delivery aligns with expectations [75][76] Question: Durability of BPO growth - Management highlighted that the BPO business has shown consistent growth and sees a long-term tailwind due to the need for ongoing transformation and maintenance of AI-enabled processes [82][80]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $5.3 billion, representing a 3.8% year-over-year growth in constant currency, all organic [25][30] - Full-year revenue reached $21.1 billion, growing 6.4% in constant currency, surpassing the $20 billion mark [6][25] - Adjusted Operating Margin improved to 16%, up 30 basis points year-over-year, with a full-year adjusted operating margin of 15.8%, exceeding guidance by 50 basis points [6][30] - Adjusted diluted EPS for Q4 was $1.35, up 12% year-over-year, leading to a full-year EPS of $5.28, an 11% increase from the prior year [31][34] Business Line Data and Key Metrics Changes - Financial Services segment led growth with a 9% year-over-year increase in constant currency for Q4 and 7% for the full year, marking the highest annual level since 2016 [5][25] - Health Sciences segment grew at over 6%, significantly above the company average, driven by strong performance in administrative and clinical processes [78] - Digital Engineering practices saw an 8% year-over-year growth in Q4, supported by proprietary platforms [19] Market Data and Key Metrics Changes - North America was the standout region with over 4% year-over-year growth in constant currency, primarily driven by financial services and healthcare [28] - Europe experienced a 2% growth in constant currency, with healthy performance in financial services and life sciences [28] - The Rest of World segment grew in line with the total company, driven by the Middle East [28] Company Strategy and Development Direction - The company aims to bridge the AI velocity gap, focusing on transforming AI technology into measurable returns for clients [11][12] - Cognizant's strategy includes a three-vector approach to capture demand, emphasizing AI-led productivity and the development of new agentic software [12][13] - The company plans to maintain its position in the industry's winner's circle by 2027, having achieved this goal two years early [8][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in 2026, supported by a strong pipeline of large deals and a focus on AI integration [24][58] - The operating environment remains complex, but management views it as an opportunity to capture wallet share in large deals and help clients reinvest savings into innovation [25][26] - The company anticipates a modest increase in defined benefit costs due to recent labor law changes in India, but this is not expected to materially impact the P&L [30] Other Important Information - The company returned $2 billion to shareholders through dividends and share repurchases in 2025 [10][32] - Cognizant completed the acquisition of 3Cloud, adding over 1,200 Azure specialists to enhance its capabilities in AI and application innovation [10][32] - The company has a healthy M&A pipeline and intends to maintain an active acquisition strategy aligned with its AI builder strategy [32][34] Q&A Session Summary Question: Insights on AI's impact on revenue and package implementation - Management sees AI as a net positive, increasing total addressable spend and creating opportunities for innovation and productivity [40][41] Question: Gross margin dynamics for 2026 - The decline in Q4 gross margin was primarily due to higher variable compensation, but management remains confident in maintaining margins through productivity measures [47][50] Question: Confidence in large deal growth for 2026 - Management expressed strong confidence in the pipeline for larger deals, expecting timely ramps and acceleration in growth throughout the year [55][58] Question: Risks and opportunities of fixed-price contracts - Management indicated that while delivery risk resides with the service provider, they have a robust process to monitor performance and maintain margins [66][67] Question: Durability of BPO growth - Management believes the BPO segment will continue to grow due to the need for ongoing transformation and maintenance of processes enabled by AI [71][74] Question: Health Sciences segment growth amidst regulatory pressures - Management is confident in the Health Sciences segment's growth, leveraging their platform to transform administrative processes and improve patient care [78][80]

Financial Data and Key Metrics Changes - Revenue for Q4 2025 was $5.3 billion, growing 3.8% year-over-year in constant currency, all organic [24] - Full-year revenue reached $21.1 billion, a 6.4% increase in constant currency, surpassing the $20 billion mark [5][24] - Adjusted Operating Margin for Q4 was 16%, improving by 30 basis points year-over-year, while full-year adjusted operating margin was 15.8%, exceeding guidance by 50 basis points [5][28] - Adjusted diluted EPS for Q4 was $1.35, up 12% year-over-year, leading to a full-year EPS of $5.28, an 11% increase from the prior year [29] Business Line Data and Key Metrics Changes - Financial Services segment led growth with constant currency revenue increasing 9% year-over-year in Q4 and 7% for the full year, marking the highest annual level since 2016 [4][24] - Health Sciences showed resilient performance despite industry cost pressures, with growth driven by cost savings and productivity improvements [25] - Digital Engineering practices experienced an 8% year-over-year growth in Q4 and full year, fueled by proprietary platforms [17] Market Data and Key Metrics Changes - North America was the standout region with over 4% year-over-year growth in constant currency, primarily driven by financial services and healthcare [26] - Europe grew 2% in constant currency, with healthy growth in financial services and life sciences [26] - The Rest of World segment grew in line with the total company, driven by the Middle East [26] Company Strategy and Development Direction - The company aims to bridge the AI velocity gap, focusing on converting AI technology into measurable returns for clients [9] - A three-vector strategy is being implemented to capture demand, including applying AI-led productivity to traditional software cycles and building new cycles of agentic capital [10][11] - The company is committed to maintaining its position in the industry's winner's circle and aims to lead as an AI builder [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth in 2026, supported by a strong pipeline of large deals and a focus on AI-driven productivity [23][50] - The operating environment remains complex, but the company views it as an opportunity to capture wallet share in large deals [24] - Management highlighted the importance of reinvention and reimagination of processes to leverage new technologies effectively [39] Other Important Information - The company returned $2 billion to shareholders through dividends and share repurchases [8] - The acquisition of 3Cloud was completed, adding over 1,200 Azure specialists to enhance capabilities in Azure data and AI [8] - The company is targeting 2,000 campus hires in the U.S. and approximately 20,000 in India for 2026 [17] Q&A Session Summary Question: Insights on AI's impact and revenue from package implementation - Management noted that new technology creates more opportunities rather than replacing old ones, emphasizing the need for process reinvention to realize value [38][39] Question: Gross margin dynamics for 2026 - Management indicated that Q4's gross margin decline was primarily due to higher variable compensation, but they expect to maintain productivity and manage costs effectively [43][45] Question: Confidence in large deal growth for 2026 - Management expressed excitement about the strong bookings and pipeline for larger deals, indicating a solid ramp-up expected in 2026 [50][54] Question: Risks and opportunities of fixed-price contracts - Management explained that delivery risk primarily resides with the service provider, and they have a robust process to monitor deal performance, ensuring they meet budgeted goals [60][63] Question: Durability of BPO growth - Management sees BPO as a significant growth area, driven by the need for transformation and maintenance of processes enabled by AI [68][69] Question: Growth margins and regulatory pressures in Health Sciences - Management expressed confidence in the Health Sciences segment's growth, highlighting the company's strong position and the potential for transformation amid regulatory uncertainties [72][75]

Cognizant (CTSH) came out with quarterly earnings of $1.35 per share, beating the Zacks Consensus Estimate of $1.32 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +1.96%. A quarter ago, it was expected that this information technology consulting and outsourcing firm would post earnings of $1.29 per share when it actually produced earnings of $1.39, delivering a surprise of +7.75%. ...