"Enterprises are moving beyond simple productivity gains toward a more connected, agentic future," said Ravi Kumar S, CEO of Cognizant. "By pairing Anthropic's Claude models and agentic tooling with Cognizant's suite of platforms and industry expertise, we will help clients build the foundations of an agentified enterprise where intelligent systems collaborate with people to accelerate modernization, engineering and industry transformation. We are equally excited to apply Anthropic's technology to help us d ...

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), whic ...

Core Insights - Anthropic has signed a significant deal with a professional-services firm, aiming to position its Claude models as the preferred AI solution for businesses [1] Company Developments - The partnership represents one of the largest agreements for Anthropic to date, indicating a strategic move to enhance its market presence [1] Industry Trends - The deal reflects a growing trend among AI startups to collaborate with established professional-services firms to drive adoption of their technologies in the business sector [1]

With a market cap of $35.3 billion, Cognizant Technology Solutions Corporation (CTSH) is a leading global professional services company. It provides consulting, technology, and outsourcing services across North America, Europe, and international markets, with a strong focus on digital transformation in areas such as AI, cloud, IoT, and experience-driven software engineering. Shares of the Teaneck, New Jersey-based company have lagged behind the broader market over the past 52 weeks. CTSH stock has dipped ...

Cognizant Technology Solutions Corp. earns more revenue than Infosys Ltd, yet the Nasdaq-listed information technology services firm is valued at barely half its peer, which is listed in India as well as the US. While Infosys, India’s second-largest IT outsourcer, has a market capitalization of $70.5 billion, Cognizant is valued at $35.01 billion—even though both closed their last fiscal year with comparable revenues of $19.74 billion and $19.28 billion, respectively. Cognizant follows a January–December fi ...

US-based IT major Cognizant Technology Solutions is planning a potential Initial Public Offering (IPO) in the Indian stock exchanges, the company’s Chief Financial Officer Jatin Dalal has said.Speaking at an investors call post the company’s September quarter earnings, Dalal said the Cognizant’s board and management team have been assessing a “potential primary offering and a secondary listing” in India. Dalal added that the company is engaging with various stakeholders from both India and the US to evaluat ...

Financial Performance - Revenues for Q3 2025 reached $5,415 million, a 7.4% increase from $5,044 million in Q3 2024[21] - Net income for Q3 2025 was $274 million, down 53% from $582 million in Q3 2024[24] - Operating income for Q3 2025 was $866 million, representing a 17.4% increase from $738 million in Q3 2024[21] - Basic earnings per share for Q3 2025 were $0.56, down from $1.17 in Q3 2024, a decline of 52.4%[21] - Comprehensive income for the nine months ended September 30, 2025, was $1,814 million, slightly down from $1,830 million in the same period of 2024[24] - Net income for the nine months ended September 30, 2025, was $1,582 million, compared to $1,694 million for the same period in 2024, reflecting a decrease of approximately 6.6%[33] - Adjusted diluted EPS increased by $0.14 or 11.2% from Q3 2024, reaching $1.39[116] - Adjusted diluted EPS for the nine months ended September 30, 2025, was $3.93, compared to $3.55 in 2024[183] Assets and Liabilities - Total current assets increased to $8,094 million as of September 30, 2025, compared to $7,504 million at the end of 2024, reflecting a 7.9% growth[18] - Total liabilities decreased to $5,237 million from $5,558 million at the end of 2024, a reduction of 5.8%[18] - Total assets increased to $20,134 million as of September 30, 2025, from $19,966 million at the end of 2024, marking an increase of 0.84%[18] - The balance of cash and cash equivalents at the end of the period was $2,341 million, up from $2,013 million at the end of the same period in 2024, representing an increase of 16.2%[33] - As of September 30, 2025, the long-term debt net of current maturities was $551 million, down from $875 million as of December 31, 2024[57] Cash Flow and Investments - Cash flows from operating activities increased to $2,025 million for the nine months ended September 30, 2025, up from $1,204 million in 2024, representing a growth of 68.0%[33] - The company reported a net cash used in investing activities of $155 million for the nine months ended September 30, 2025, compared to $1,567 million in 2024, indicating a significant reduction in cash outflow[33] - The company repaid the $300 million balance outstanding under the revolving credit facility during the nine months ended September 30, 2025[193] Revenue Segments - Revenues are primarily attributed to clients in the United States, with substantial contributions from consulting and technology services as well as outsourcing services[39] - North America generated $4,028 million in revenues for the nine months ended September 30, 2025, up from $3,735 million in 2024, reflecting a year-over-year increase of 7.8%[40] - The Health Sciences segment reported a revenue increase of $335 million, or 7.6%, for the nine months ended September 30, 2025[158] - Financial Services segment revenue grew by $269 million, or 6.2%, for the same period[158] - Products and Resources segment saw a revenue increase of $480 million, or 13.8%, for the nine months ended September 30, 2025[158] Stock and Dividends - Common stock repurchases totaled $1,040 million for the nine months ended September 30, 2025, compared to $451 million in the same period of 2024, showing an increase of 131.5%[33] - Dividends paid amounted to $459 million for the nine months ended September 30, 2025, slightly up from $450 million in 2024, reflecting a marginal increase of 2.0%[33] - The Board of Directors declared a dividend of $0.31 per share on October 28, 2025, with a record date of November 18, 2025, and a payment date of November 26, 2025[108] Tax and Legal Matters - The effective income tax rate for the three months ended September 30, 2025, was 69.1%, significantly higher than 22.7% for the same period in 2024, primarily due to a one-time, non-cash income tax expense of $390 million[58] - The company continues to defend its position regarding tax disputes with the ITD related to share repurchase transactions valued at $523 million and $2.8 billion[60] - The company is currently involved in ongoing litigation related to class action claims, with a retrial scheduled for October 2024[94] Operational Efficiency - The company plans to continue significant investments in AI capabilities to meet client needs and enhance operational efficiency[115] - SG&A expenses decreased as a percentage of revenues, primarily due to net savings from the NextGen program[164] - Voluntary attrition in Tech Services was 14.5% for the trailing twelve months ended September 30, 2025, slightly down from 14.6% in the previous year[112] Market and Economic Outlook - The company is evaluating acquisition opportunities and capital allocation based on financial performance and economic outlook[198] - The company expects operating cash flows and available credit facilities to meet operating requirements for the next twelve months[200] - The company regularly monitors domestic and international cash flows to ensure liquidity for strategic plans[199]

Cognizant Technology Solution / Wikimedia Commons Cognizant Technology Solutions (NASDAQ: CTSH) beat on both earnings and revenue Wednesday morning, extending a streak of consistent outperformance while signaling that its AI strategy is beginning to pay off. The stock was trading near $67 in early action, holding steady after a volatile September that had sent shares down sharply before a recovery in recent weeks. Fifth Quarter of Growth Momentum Cognizant delivered $5.42 billion in revenue for the third ...

Cognizant Technology Solutions beat on both earnings and revenue Wednesday morning, extending a streak of consistent outperformance while signaling that its AI strategy is beginning to pay off. ...

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CTSH, CGEMY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. While this article may sound like financial advice, please observe that the author is not a CFA or in any way licensed to give financial ...