Accessibility StatementSkip Navigation Venbrook and Cognizant Partner up The partnership will include an innovative, agentic AI-powered TPA claims solution, co-developed by both companies, that helps digitize key components of the claims process value chain for P&C insurance carriers to help meet the growing demands of the TPA market. As part of the agreement, Cognizant will provide Venbrook claims processing, policy administration, financial operations and compliance processing services, working alongside ...

Company Overview - Cognizant Technology Solutions Corporation (CTSH) has a market cap of $34.5 billion and is a leading global professional services company providing consulting, technology, and outsourcing services with a focus on digital transformation in AI, cloud, IoT, and software engineering [1] - Cognizant serves various industries including financial services, healthcare, life sciences, products and resources, and communications, media, and technology, helping clients modernize operations and enhance customer experiences [2] Stock Performance - Cognizant's shares have fallen 23.5% from their 52-week high of $90.82 and decreased 13.6% over the past three months, underperforming the S&P 500 Index, which gained nearly 9% in the same period [3] - Year-to-date, CTSH stock is down 9.6%, lagging behind the S&P 500's nearly 12% rise, and has dropped 8.9% over the past 52 weeks compared to the S&P 500's 17.7% return [4] Financial Performance - In Q2 2025, Cognizant reported earnings of $1.31 per share and revenue of $5.25 billion, beating estimates, yet the stock fell 2.4% the following day [5] - Cash and short-term investments declined to $1.8 billion, and free cash flow dropped to $331 million, raising concerns about slowing growth in key segments [5] Competitive Landscape - Rival Broadridge Financial Solutions, Inc. (BR) has outperformed Cognizant, with BR stock gaining over 12% year-to-date and 20.3% over the past 52 weeks [6] - Despite the underperformance, analysts maintain a moderately optimistic outlook on CTSH, with a consensus rating of "Moderate Buy" and a mean price target of $88.16, representing a 26.9% premium to current levels [6]

Group 1 - Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is recognized as a leading IT stock favored by hedge funds [1] - On September 4, Cognizant participated in the AI Education Taskforce meeting at the White House, collaborating with other AI firms and government officials to promote AI education in the US [1] - Cognizant is one of over 100 organizations committed to enhancing AI skills among American youth, pledging to provide resources and support for thousands of teachers and tens of thousands of students by 2028 [2] Group 2 - The company aims to create an "AI-ready workforce" through its philanthropic efforts and educational initiatives [2] - Cognizant is addressing workforce disruptions caused by AI with its global upskilling initiative, Synapse, which targets training for one million individuals worldwide by the end of 2026 [2] - Cognizant Technology Solutions provides consulting, technology, and outsourcing services on an international scale [3]

Question-and-Answer SessionThanks for being here. I think it's fair to say that right now is kind of a period of macro volatility in a lot of different ways, rapid policy shifts, tariff headlines, economic indicators are moving week to week. What are clients telling you, Ravi, about their willingness to spend on new capabilities versus optimize on cost in the enterprise?Ravi Kumar SCEO & Director There are some sectors where the conversations have moved from cost takeout consolidation efficiency and product ...

Summary of Cognizant Technology Solutions Conference Call Company Overview - **Company**: Cognizant Technology Solutions (NasdaqGS: CTSH) - **Event**: Goldman Sachs Humanitopian Technology Conference - **Date**: September 10, 2025 Key Industry Insights - **Macro Environment**: Current period characterized by macro volatility, with rapid policy shifts and fluctuating economic indicators [3][4] - **Client Spending Trends**: Shift from cost-cutting to innovation in sectors like banking and financial services, with a year-on-year growth of 6% to 7% for Cognizant [3][4] - **Software Development Productivity**: Significant increase in productivity, with 30% of code now written by machines, up from 18% [4][5] Core Business Strategies - **Agentic Development Cycles**: Emphasis on agentic cycles as a larger growth opportunity compared to traditional software development cycles, with potential for 10x growth [10][17] - **Cost Savings and Innovation**: Clients are using savings from productivity improvements to fund AI and innovation initiatives rather than reducing budgets [4][17] - **New Labor Pools**: The integration of agentic capital with human capital is expected to trigger a new outsourcing cycle, unlocking new labor pools [14][15] Financial Performance and Projections - **Large Deals**: Cognizant has secured multiple large deals, including two billion-dollar contracts last quarter, and consistently tracks 55 to 60 deals over $100 million [5][19] - **BPO Growth**: Business Process Outsourcing (BPO) services have become the fastest-growing service line, contrary to previous expectations of decline [19][20] - **EPS Growth**: Projected EPS growth of 7% to 10% for the year, with a focus on maintaining margin expansion [30] Market Opportunities - **Healthcare Sector**: Significant opportunities in healthcare due to increased administrative loads and the potential for AI-driven proactive care solutions [23] - **Manufacturing Sector**: While not a primary focus, there are opportunities for growth in manufacturing, which requires external catalysts for innovation [24] - **Geographic Expansion**: Cognizant is looking to diversify revenue sources outside the U.S. and expand into industries beyond BFSI and healthcare [31] Competitive Positioning - **Investment in AI**: Heavy investments in AI productivity tools have positioned Cognizant favorably among peers, moving from the bottom to the top of the competitive pack [27][28] - **M&A Strategy**: Future acquisitions will focus on AI-led assets and expanding capabilities in underrepresented industries [31][36] Challenges and Considerations - **Macro Dependency**: Future spending cycles are contingent on macroeconomic conditions, particularly in triggering CapEx for AI [40][41] - **Vendor Consolidation**: Cognizant is displacing vendors that lack effective AI capabilities, creating opportunities for consolidation [46] Conclusion Cognizant Technology Solutions is navigating a complex macro environment while capitalizing on productivity gains through AI and agentic development cycles. The company is poised for growth through strategic investments, large deal acquisitions, and a focus on emerging market opportunities, particularly in healthcare and manufacturing.

Core Viewpoint - Cognizant is actively participating in a national initiative to expand AI education in the United States, collaborating with various stakeholders to empower youth with necessary skills for an AI-driven future [1][2][3] Group 1: Company Initiatives - Cognizant has pledged to contribute philanthropic funds, educational resources, and employee expertise to enhance AI literacy among thousands of teachers and tens of thousands of students by 2028 [3] - The company aims to cultivate an AI-ready workforce and foster the next generation of innovators through its AI Pledge to America's Youth [3] - Cognizant's Synapse initiative is designed to address workforce disruptions caused by AI advancements, targeting technology job training for one million people globally by 2026 [3] Group 2: Leadership and Collaboration - Ravi Kumar S, CEO of Cognizant, highlighted the company's responsibility in shaping future AI talent and emphasized collaboration with the White House and industry leaders [3] - Thea Hayden, Chief Marketing Officer, represented Cognizant at the White House meeting, stressing the importance of empowering the next generation with relevant skills for future workforce demands [3]

Core Insights - The IT services market has been significantly disrupted by AI over the past two years, affecting nearly every value chain and market globally [1] - Cognizant identifies three key steps in the AI market opportunity: unlocking productivity, infusing AI into the tech stack, and deploying agents within the value chain [2] Group 1: AI Market Opportunity - The first step involves clients leveraging AI to enhance productivity within their value chains [2] - The second step focuses on integrating AI across the technology stack to minimize tech debt and initiate agentification [2] - The current demand is primarily concentrated in the first vector, which emphasizes productivity enhancement [2]

Summary of Cognizant Technology Solutions (CTSH) Conference Call Industry Overview - The IT services market has been significantly disrupted by AI over the past two years, affecting nearly every value chain globally [4][5] - Cognizant identifies three vectors of AI market opportunity: 1. Unlocking productivity in value chains 2. Industrializing AI across tech stacks 3. Agentification of value chains [4][6] Core Insights - **Current Focus on AI**: Most clients are currently focused on vector one, which involves using AI to enhance productivity and optimize costs. This has led to an increase in cost optimization deals [5][8] - **Future Expectations**: Cognizant anticipates a shift towards vector two (industrialization of AI) in the coming quarters, which is expected to present a larger market opportunity than vector one [6][40] - **Large Deals Performance**: Cognizant has consistently won 4 to 6 large deals each quarter, with a focus on $100 million plus deals. The company is also targeting mega deals worth $500 million or more [12][14] - **Sector-Specific Trends**: - Financial services are showing signs of recovery with increased discretionary spending, while healthcare remains cautious due to macroeconomic factors [15][19][22] - The company is expanding its presence in underpenetrated markets such as healthcare providers and communications [25][26] Financial Performance - Cognizant has seen a rebound in financial services, achieving year-on-year growth for four consecutive quarters [21] - The healthcare segment remains strong, with Cognizant's platforms covering approximately two-thirds of the US insured population [23][24] - The company is focused on maintaining healthy margins while growing revenue, emphasizing large deal governance and execution [55][56] AI and Pricing Models - The transition to AI is expected to change pricing models from traditional time and material to hybrid models that focus on value and outcomes [42][43] - While vector one pricing remains competitive, vectors two and three are anticipated to command premium pricing due to the need for specialized skills [59][60] M&A Strategy - Cognizant is actively seeking acquisition opportunities to access underpenetrated markets, build missing capabilities, or expand into new geographies [76] Cultural Insights - Cognizant's culture remains centered on client-centricity, which has been a consistent differentiator throughout its evolution [68][72] Conclusion - Cognizant is navigating a transformative period in the IT services industry, driven by AI advancements and shifting market dynamics. The company is strategically positioned to capitalize on emerging opportunities while maintaining a focus on growth and client satisfaction.

Core Viewpoint - Cognizant Technology Solutions reported strong Q2 2025 earnings, beating estimates and showing year-over-year revenue growth, driven by acquisitions and organic growth in key sectors [3][4][12]. Financial Performance - Non-GAAP earnings per share for Q2 2025 were $1.31, exceeding the Zacks Consensus Estimate by 3.97% and reflecting a 12% increase year-over-year [3]. - Revenues reached $5.25 billion, surpassing the consensus mark by 1.01%, with an 8.1% year-over-year increase and a 7.2% increase at constant currency [3]. - The Belcan acquisition contributed approximately 400 basis points to revenue growth [4]. - Bookings for the trailing 12 months increased by 6% year-over-year to $27.8 billion, with a book-to-bill ratio of approximately 1.4 times [4]. Segment Performance - Financial Services revenues, accounting for 29.5% of total revenues, grew by 6.9% year-over-year to $1.547 billion [6]. - Health Sciences revenues, also 29.6% of total revenues, increased by 6.2% year-over-year to $1.551 billion [6]. - Products and Resources revenues rose by 16% year-over-year to $1.306 billion, while Communications, Media and Technology revenues increased by 3.1% to $841 million [7]. Geographic Performance - North America revenues grew by 8.1% year-over-year, contributing 74.6% to total revenues [7]. - Europe revenues increased by 9.6% year-over-year, contributing 19.1% to total revenues, with the U.K. and Continental Europe showing respective increases of 8.6% and 10.6% [8]. Operational Metrics - Selling, general & administrative expenses as a percentage of revenues decreased by 70 basis points year-over-year to 15.4% [9]. - The company reported a GAAP operating margin of 15.6%, expanding by 100 basis points year-over-year [10]. - Total headcount increased to 343,800 from 336,300 in the previous quarter [9]. Balance Sheet - Cash and short-term investments totaled $1.80 billion as of June 30, 2025, down from $1.99 billion as of March 31, 2025 [11]. - Total debt decreased to $592 million from $600 million in the previous quarter [11]. - Free cash flow was reported at $331 million, compared to $393 million in the prior quarter [11]. Guidance - For Q3 2025, Cognizant expects revenues between $5.27 billion and $5.35 billion, indicating growth of 4.6%-6.1% [12]. - For the full year 2025, revenues are projected to be between $20.7 billion and $21.1 billion, reflecting a growth of 4.7%-6.7% [12]. - Adjusted earnings per share for 2025 are anticipated to be between $5.08 and $5.22 [13]. Market Position - Estimates for Cognizant have trended upward over the past month, indicating positive market sentiment [14][16]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the near term [16].

Core Insights - Cognizant has set a GUINNESS WORLD RECORDS title for the most participants in an online generative AI hackathon, with 53,199 associates participating and producing 30,601 working prototype projects [1][2][6] - The event aimed to democratize innovation and enhance AI literacy across the enterprise, involving associates from various business functions [3][5] Group 1: Event Details - The Vibe Coding event took place over ten days, engaging over 53,000 Cognizant associates from 40 countries [1][2] - Participants created a diverse range of submissions, including an HR wellness companion app and a brand compliance checking app [2] - The event featured a "Vibe Coding Hub" that provided access to coding platforms and tutorials, created within 24 hours [3] Group 2: Vibe Coding Concept - "Vibe coding," a term coined by AI researcher Andrej Karpathy, emphasizes creativity over syntax, allowing participants to describe their intent in natural language [4] - This approach lowers barriers to innovation, making software creation accessible to a broader audience [4] Group 3: Strategic Implications - Cognizant's CEO emphasized that the initiative is about preparing the workforce for the AI economy, enabling everyone to innovate with AI [5] - The event is seen as a rehearsal for the future of work, empowering individuals to create prototypes and products independently [5][6] - Over 250,000 associates registered for the Cognizant Global Vibe Coding Community, which will continue to foster innovation [6] Group 4: Commitment to AI - Cognizant has committed to a $1 billion investment in AI and aims to upskill one million people with new digital skills, including AI, by the end of 2026 [7]