Revenue and Business Segments - Cognizant's revenue for the year ended December 31, 2025, was distributed across four reportable business segments: Health Sciences, Financial Services, Products and Resources, and Communications, Media and Technology[33]. - The Health Sciences segment is driven by trends such as consumerism and digital health, leading to increased demand for services in clinical development and patient engagement[28]. - The Financial Services segment focuses on modernizing legacy technology and adopting AI capabilities, with clients expanding enterprise AI adoption to enhance customer experience and improve risk management[29]. - The Products and Resources segment emphasizes efficiency and sustainability, with clients adopting AI and IoT technologies to enhance customer experiences and manage supply chains[30]. - The Communications, Media and Technology segment is driven by AI adoption and operational modernization, focusing on enhancing user experiences and driving operational efficiency[31]. - Revenues increased by $1,372 million or 7.0% from 2024, with a 6.4% increase in constant currency; the acquisition of Belcan contributed 260 basis points to revenue growth[151]. - Revenues for the year ended December 31, 2025, were $21,108 million, representing a 7.0% increase from $19,736 million in 2024[161]. - The Health Sciences segment saw revenue growth of $415 million, or 7.0%, while Financial Services grew by $420 million, or 7.3%[164]. Employee and Workforce Management - As of December 31, 2025, Cognizant had approximately 351,600 employees, with 256,900 in India, 41,600 in North America, and 14,600 in Continental Europe[51]. - From July 2023 to the end of 2025, Cognizant upskilled more than 330,000 associates on GenAI through over 1,000 learning programs[51]. - The voluntary attrition rate for Tech Services was 13.9% in 2025, down from 15.9% in 2024[54]. - Cognizant aims to upskill 2 million future workers by 2030 as part of its Synapse program commitment[51]. - Cognizant's annual engagement survey scores are above industry benchmarks, reflecting high employee satisfaction[51]. - The company has a comprehensive rewards portfolio that includes compensation, healthcare benefits, and mental health support initiatives[54]. Strategic Initiatives and Investments - Cognizant is investing in digital and AI capabilities, including extensive training and reskilling of technical teams, to drive organic growth and expand local workforces[22]. - The company is pursuing strategic acquisitions to enhance talent and capabilities in key technologies and specific geographies[22]. - The company aims for significant organic and inorganic growth, particularly in AI and digital sectors, which increases operational complexity[89]. - Strategic acquisitions are pursued to enhance service offerings, but successful integration and realization of desired results are uncertain[90]. - The company plans to allocate approximately 50% of free cash flow for acquisitions and 50% for share repurchases and dividends[207]. Financial Performance and Metrics - Operating margin increased to 16.1% and Adjusted Operating Margin to 15.8%, up from 14.7% and 15.3% in 2024, respectively[151]. - Adjusted Diluted EPS rose by $0.53 or 11.2% from 2024, while GAAP Diluted EPS increased by $0.05 or 1.1%[149]. - Net income for 2025 was $2,230 million, slightly down from $2,240 million in 2024, resulting in diluted EPS of $4.56, an increase of 1.1% from $4.51[161]. - Free cash flow increased to $2,665 million in 2025, up from $1,827 million in 2024, marking an increase of $838 million[199]. - Cash generated from operating activities rose to $2,883 million in 2025, compared to $2,124 million in 2024, an increase of $759 million[200]. - Cash dividends paid in 2025 totaled $1.24 per share, with a new dividend of $0.33 per share approved for February 2026[138]. - The stock repurchase program has a remaining balance of $1,918 million as of December 31, 2025, with $325 million repurchased in Q4 2025[139]. Risks and Challenges - The company faces significant risks from macroeconomic and geopolitical conditions, which could adversely affect client spending and overall business performance[69]. - Revenues are highly dependent on clients in the United States and Europe, making the company vulnerable to economic downturns in these regions[70]. - Intense competition in the market requires the company to continuously innovate and differentiate its services to maintain market share[72]. - The company faces risks related to meeting specified service levels in client contracts, which could lead to reduced fees, penalties, or reputational harm[86]. - The evolving legal and regulatory landscape surrounding AI may impose significant operational costs and compliance challenges for the company[80]. - Attracting and retaining skilled employees, particularly in AI and digital areas, is essential for meeting client demand and achieving business objectives[82]. - Competition for skilled labor is intense, and changes in immigration laws may limit the availability of qualified personnel[83]. - The company must adapt to rapid technological changes to avoid losing business and maintain profitability[74]. - Economic conditions in India, where a significant portion of operations is located, could impact operational costs and business performance[70]. - Many client contracts are short-term and can be terminated on short notice, which may adversely affect the company's revenues and operating margins[84]. Corporate Governance and Compliance - The company has a strong focus on corporate governance and financial stability, which supports its competitive position[52]. - The company is subject to numerous legal and regulatory requirements across various jurisdictions, and any violations or unfavorable changes could harm its business operations and financial condition[111]. - The company has identified material weaknesses in its internal control over financial reporting, which may lead to increased remediation costs[113]. - The company may incur significant costs related to compliance with evolving data security and privacy laws, which are subject to change and interpretation across jurisdictions[111]. - The company has faced ongoing disputes with tax authorities, which could lead to increased tax exposure and financial liabilities[117]. Technology and Innovation - Cognizant's services include AI and technology solutions, consulting, application development, and business process services, with a focus on continuous transformation through investment in new technologies[35]. - The company operates an integrated global delivery model, leveraging AI and automation to optimize service delivery and enhance collaboration across locations[45]. - Cognizant's competitive strategy relies on its proprietary innovations and intellectual property, which differentiate it from competitors in the professional services market[48]. - Investment in AI technologies is critical for competitive positioning, but the company faces challenges in developing and implementing effective AI solutions[75]. - The company relies on third-party alliance partners for technology, and any disruption in these relationships could impair service delivery and revenue[73]. Market and Economic Conditions - Climate-related risks may disrupt supply chains and increase costs, impacting the company's financial performance[101]. - Pandemics and other outbreaks can materially affect business operations, liquidity, and financial condition due to reduced client demand and operational disruptions[99]. - Fluctuations in foreign currency exchange rates can adversely impact profitability and financial condition, particularly with exposure to the Indian rupee[98]. - The depreciation of the Indian rupee positively impacted operating margin by approximately 70 basis points in 2025[178].

Investors in Cognizant Technology Solutions Corporation (CTSH) need to pay close attention to the stock based on moves in the options market lately. That is because the Feb. 20, 2026 $60 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or ...

UAE-based diversified conglomerate advances its technology landscape to drive efficiency, innovation, and service excellence.DUBAI, United Arab Emirates, Feb. 10, 2026 /PRNewswire/ -- Cognizant (NASDAQ: CTSH) is collaborating under a three-year strategic agreement with DAMAC Group, a private global conglomerate encompassing a diverse portfolio across various industries, including property development and real estate, data centres, retail and fashion, hospitality, capital markets, and logistics. Through thi ...

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the worst AI stocks to invest in according to Reddit. On February 5, Cognizant Technology Solutions (NASDAQ:CTSH) announced a partnership with Palantir Technologies to accelerate AI-driven modernization across healthcare and enterprise operations. The collaboration will integrate Palantir Foundry and the Palantir AIP with Cognizant’s TriZetto healthcare business and business process operations to deliver secure, scalable AI transformations for clients acro ...

Core Insights - Cognizant Technology Solutions has seen significant changes in institutional holdings, with several hedge funds increasing their stakes substantially in recent quarters [1][5] - Analysts have mixed ratings on Cognizant, with target prices ranging from $82.00 to $100.00, indicating a generally positive outlook [2] - Recent insider transactions show a decrease in positions by some directors, which may indicate a cautious sentiment among insiders [3] Institutional Holdings - NewSquare Capital LLC raised its holdings by 71.8%, now owning 366 shares valued at $29,000 after acquiring 153 additional shares [1] - High Note Wealth LLC increased its stake by 22,450.0%, owning 451 shares worth $30,000 after purchasing 449 shares [1] - E Fund Management Hong Kong Co. Ltd. raised its stake by 267.7%, now holding 603 shares valued at $40,000 after acquiring 439 shares [1] - 92.44% of Cognizant's stock is owned by hedge funds and institutional investors [1] Analyst Ratings - Citigroup maintained a "neutral" rating with a price target increase from $75.00 to $86.00 [2] - Morgan Stanley raised its target price from $80.00 to $82.00, maintaining an "equal weight" rating [2] - Deutsche Bank upgraded Cognizant from "hold" to "buy," setting a target price of $100.00 [2] - The average target price among analysts is $90.78, with nine analysts rating it as a Buy and twelve as Hold [2] Insider Transactions - Director Michael Patsalos-Fox sold 2,000 shares at an average price of $84.23, totaling $168,460, resulting in a 6.30% decrease in his position [3] - Insider Surya Gummadi sold 1,728 shares at an average price of $83.06, totaling $143,527.68, also reflecting a 6.31% decrease in his position [3] - Over the last quarter, insiders sold 29,434 shares valued at $2,460,809, with insiders owning 0.32% of the stock [3] Financial Performance - Cognizant reported earnings of $1.35 per share, exceeding analysts' expectations of $1.32, with revenue of $5.33 billion, slightly above the expected $5.31 billion [6] - The company experienced a 4.9% year-over-year revenue growth compared to the same quarter last year [6] - Cognizant has set its FY 2026 guidance at an EPS range of 5.560-5.700, with analysts expecting an EPS of 4.98 for the current year [6] Dividend Information - Cognizant announced a quarterly dividend of $0.33, an increase from the previous $0.31, representing an annualized dividend of $1.32 and a yield of 1.7% [7] - The dividend payout ratio stands at 27.25% [7] Company Overview - Cognizant Technology Solutions is a global professional services company providing IT, consulting, and business process services [8] - The company specializes in digital engineering, application development, cloud migration, data analytics, and cybersecurity [8] - Cognizant operates across the Americas, Europe, and Asia, with a focus on technology-enabled transformations for large enterprises [9]

Core Insights - Major IT services companies are rapidly adopting AI agents from specialized firms to enhance their capabilities and remain competitive in the evolving market [1][2] Company Partnerships and Developments - Four leading Indian IT outsourcers—Cognizant, Infosys, HCL Technologies, and Wipro—are forming partnerships with smaller AI firms to integrate AI agents for software development, data analysis, and marketing [2] - Wipro announced a partnership with Factory to utilize AI agents for software development tasks, indicating a shift towards production-scale AI adoption [4] - Infosys partnered with Cursor to deploy AI software engineers for creating AI-centric products, establishing a center of excellence for development [6] - Cognizant is collaborating with Typeface to implement AI agents for marketing campaigns, showcasing the trend of integrating AI into various business functions [11][12] Economic Implications - The integration of AI agents is expected to improve economic outcomes for clients, with Infosys noting that the economics of projects have significantly changed, allowing previously stalled projects to proceed [7] - HCLTech reported $246 million in advanced AI revenue for the July-December 2025 period, with an overall revenue of $13.85 billion, reflecting a 3.85% year-on-year growth [9] Hiring Trends and Workforce Impact - Companies are divided on the impact of AI agent deployment on hiring fresh graduates, with Infosys planning to hire 20,000 freshers in FY27, while Wipro reduced its target from 10,000 to 8,000 [14] - HCLTech has not specified fresh hiring plans but expects to end the year with more freshers than the previous year, having already hired 10,000 in the first nine months of FY26 [16] - Analysts suggest that the deployment of AI agents may lead to reduced demand for mid-level, task-oriented roles, particularly in areas like testing and basic development [17][18] Strategic Insights - AI coding tool providers are diversifying their client base, with IT services companies being a key channel for enterprise clients, allowing for quicker access to talent and testing of AI use cases [19]

Core Insights - Cognizant Technology Solutions (CTSH) reported non-GAAP earnings of $1.35 per share for Q4 2025, exceeding the Zacks Consensus Estimate by 1.96% and reflecting an 11.6% year-over-year increase [2][10] - Revenues reached $5.33 billion, surpassing consensus by 0.50%, with a year-over-year growth of 4.9% and 3.8% at constant currency [3][10] - The company raised its guidance for Q1 2026 and full-year 2026 revenues, indicating positive growth expectations [14][15] Financial Performance - Bookings increased by 5% year-over-year to $28.4 billion, with a book-to-bill ratio of approximately 1.3 times; Q4 bookings rose 9% year-over-year, including 12 large deals valued over $100 million [4][10] - Financial services revenues, accounting for 29.7% of total revenues, grew 10.5% year-over-year to $1.586 billion, driven by investments in cloud and AI [6] - Health Sciences revenues, making up 30.4% of total revenues, increased 5.2% year-over-year to $1.621 billion, supported by strong demand across various sectors [6] Regional Performance - North America contributed 74.7% of total revenues, with a year-over-year increase of 4.3% [7] - Revenues from Europe rose 8.4% year-over-year, contributing 19.1% to total revenues, while the Rest of the World saw a 2.5% increase [8] Operational Metrics - Selling, general & administrative expenses as a percentage of revenues decreased by 150 basis points year-over-year to 15.1% [11] - The company reported a GAAP operating margin of 16%, expanding 120 basis points year-over-year [12] Balance Sheet - As of December 31, 2025, cash and short-term investments totaled $1.91 billion, down from $2.35 billion at the end of the previous quarter [13] - Total debt decreased to $576 million from $584 million in the prior quarter [13] Future Guidance - For Q1 2026, revenues are expected to be between $5.36 billion and $5.44 billion, indicating growth of 4.8%-6.3% [14] - For the full year 2026, revenues are projected to be in the range of $22.14 billion to $22.66 billion, reflecting a growth of 4.9%-7.4% [14]

Core Insights - Cognizant has announced a strategic partnership with Palantir Technologies to accelerate AI-driven modernization in healthcare and enterprise operations [1][2] - The collaboration aims to leverage Palantir Foundry and AIP to enhance AI integration within Cognizant's TriZetto healthcare business and pursue broader enterprise AI transformation opportunities [1][3] Group 1: Partnership Objectives - The partnership is designed to create enterprise-grade AI solutions that deliver real business value, focusing on responsible adoption, security, and operational integrity [2][3] - Cognizant will explore how AIP can optimize TriZetto's healthcare platforms and Business Process as a Service (BPaaS) operations, particularly in regulated and labor-intensive environments [3][4] Group 2: Strategic Importance - This collaboration reflects Cognizant's commitment to using frontier technologies for client value and internal business transformation, enhancing its ability to modernize mission-critical platforms [3][5] - Palantir's experience in deploying AI platforms in critical environments complements Cognizant's global delivery scale, supporting the expansion of AI-powered solutions while ensuring governance and security [4][5] Group 3: Future Initiatives - Cognizant and Palantir plan to collaborate on enterprise AI transformation initiatives beyond healthcare, indicating a broader application of their partnership across various industries [5][6] - The partnership aligns with Cognizant's recent AI investments, reinforcing its strategy to build a composable ecosystem of leading AI platforms for internal and client innovation [6]

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]

Core Insights - Cognizant reported strong large-deal momentum, with fourth-quarter bookings increasing by 9% year-over-year and achieving a record total contract value (TCV) [1][7]. - The company signed 12 large deals valued at $100 million or more in Q4, including one exceeding $1 billion, with the value of large-deal wins up 60% compared to the previous year [1][8]. Financial Performance - Fourth-quarter adjusted diluted EPS was $1.35, reflecting a 12% increase year-over-year, while full-year adjusted EPS reached $5.28, up 11% [2]. - Fourth-quarter revenue was reported at $5.3 billion, with full-year revenue totaling $21.1 billion, representing a 6.4% growth in constant currency [4][7]. - The adjusted operating margin for Q4 was 16%, an increase of 30 basis points year-over-year, and for the full year, it was 15.8%, up 50 basis points [3][7]. Cash Flow and Shareholder Returns - Fourth-quarter free cash flow was approximately $800 million, leading to a full-year total of $2.7 billion, which was more than 100% of net income [2][7]. - Cognizant returned about $2 billion to shareholders in 2025 through dividends and share repurchases, with plans to return approximately $1.6 billion in 2026, including about $1 billion in share repurchases [18][19]. AI Strategy and Future Outlook - The company is positioning itself as an "AI builder," with over 4,000 AI engagements and more than 30% of developer efforts being AI-assisted [6][10]. - For 2026, Cognizant is guiding for revenue growth of 4% to 6.5% in constant currency, an adjusted operating margin of 15.9% to 16.1%, and adjusted diluted EPS of $5.56 to $5.70 [6][18]. Segment Performance - Financial services were a major growth driver, with a 9% year-over-year growth in Q4 and 7% for the full year, marking the highest annual level since 2016 [12]. - Health sciences showed resilience amid cost pressures, growing over 6%, with GenAI projects expanding in various areas [13]. - North America was the standout region, growing more than 4% in constant currency during Q4, while Europe and the Rest of the World also showed growth [15].