Tata Consultancy Services Ltd’s takeover of Coastal Cloud in its largest acquisition since going public wasn’t a one-off—it is the seventeenth such buyout of a Salesforce-centric firm by an Indian software services provider in the past decade. Yet, the focus on creating products for Salesforce systems has become increasingly vital as artificial intelligence (AI) reshapes businesses. San Francisco-based Salesforce Inc develops software to manage client inventory tracking, sales, ticket resolutions, and data ...

 US President Donald Trump’s $100,000 price tag for new H-1B workers hired from outside the US will have punishing effects for the IT outsourcing and staffing industries that have long been a target of both parties.The fee is the biggest restriction the Trump administration has imposed so far on employment of skilled foreign workers.A Bloomberg News analysis found it will have a disproportionate impact on multinational staffing firms that act as middlemen for companies seeking H-1B workers. Those middlemen ...

Core Insights - Cognizant has launched an India Artificial Intelligence Lab and a Cognizant Moment Studio in Bengaluru, as part of a $1 billion investment in generative AI over the next three years [1][2][5] Group 1: AI Lab and Studio Overview - The India AI Lab extends Cognizant's existing AI Lab in San Francisco and focuses on developing multi-agent systems, AI decisioning capabilities, and responsible AI initiatives [2][4] - The Cognizant Moment Studio aims to enhance customer experience through AI, driving growth and innovation [2][4] Group 2: Strategic Goals and Innovations - The lab and studio will work on creating intelligent systems that support dependable decision-making for enterprises, emphasizing human-centered design [3][4] - Cognizant's AI Lab will strengthen its intellectual property portfolio and develop proprietary frameworks and reusable AI components [4][5] Group 3: Talent and Collaboration - The India AI Lab will leverage Bengaluru's engineering talent and partner with leading universities for joint research initiatives and real-world experimentation [5]

Core Insights - Microsoft has formed partnerships with four major Indian IT companies—Cognizant, Infosys, TCS, and Wipro—to accelerate the adoption of agentic AI [1][3] - These companies will collectively deploy over 200,000 Microsoft Copilot licenses, marking a significant milestone in enterprise-scale AI adoption [2] - Microsoft plans to invest $17.5 billion in cloud and AI infrastructure in India from 2026 to 2029 [2] Microsoft-India Alliance - The collaboration aims to embed AI into core operations, transforming how organizations operate and innovate [3] - Companies are becoming Frontier Firms by redesigning workflows around human-agent collaboration, impacting various functions such as delivery, sales, finance, HR, and customer engagement [3][5] Cognizant's Role - Cognizant is expanding its partnership with Microsoft to make GenAI and Copilots available to millions, enhancing enterprise operations and employee experiences [7] - As "client zero" for Copilot, Cognizant aims to refine AI solutions for greater value and innovation [7] Infosys Initiatives - Infosys is implementing one of the largest Copilot deployments, enhancing productivity and decision-making through AI integration [9] - The collaboration with Microsoft is strategic, shifting Infosys to a human+ agent powered AI-first enterprise [11] TCS Developments - TCS is transforming its Sales, HR, and Finance functions through AI, providing personalized AI coaching to all employees [12] - The partnership with Microsoft supports the digitization of processes and autogeneration of code [12] Wipro's Strategy - Wipro is launching the Microsoft Innovation Hub to advance its Frontier Firm ambition, deploying over 50,000 Copilot licenses [13] - The collaboration focuses on embedding agentic AI across workflows to enhance customer experience and productivity [13][14]

Core Insights - Cognizant and BayWa are entering a five-year collaboration aimed at digital transformation and IT service operations [1] - The partnership will enhance efficiency and synergies by consolidating IT infrastructure, application management, service desk, and workplace services under Cognizant [2] - The collaboration will introduce modern technologies such as AI and automation, along with continuous modernization of infrastructure and applications [2] Company Overview - Cognizant is a Nasdaq-100 company that focuses on modernizing technology, reimagining processes, and transforming experiences for clients [4] - BayWa AG operates in multiple sectors including agriculture, heating, mobility, technology, and building materials, with around 400 locations and approximately 8,000 employees [5]

Group 1: Microsoft Investment - Microsoft announced its largest-ever investment in Asia, committing $17.5 billion to develop AI infrastructure, skills, and capabilities in India [2][3] - The investment aims to support India's future AI ambitions and enhance the country's technological landscape [2][3] Group 2: Cognizant's Commitment - Cognizant's CEO and Chairman met with PM Modi to discuss the company's ongoing partnership with India in futuristic sectors, emphasizing AI and skill development [4][5] - Cognizant reaffirmed its commitment to India and plans to expand into emerging cities to promote equitable growth and talent development [5] Group 3: Intel's Semiconductor Vision - Intel's CEO met with PM Modi to discuss the company's commitment to India's semiconductor journey, highlighting the potential for collaboration in technology and innovation [6][7] - Intel expressed support for India's Semiconductor Mission and acknowledged the government's comprehensive policy in this sector [8] Group 4: Overall Investment Landscape - The total investment commitments from major US tech companies in AI-centric data centers in India for 2025 have reached $42.5 billion, including Microsoft's and Google's investments [8][9] - Google announced a $15 billion investment for a 1 gigawatt AI data center in Visakhapatnam, while Amazon Web Services plans to invest $7 billion in Telangana [9]

Core Insights - Cognizant Technology Solutions Corporation (CTSH) has a market capitalization of $39 billion and is a significant player in the global IT-services and consulting sector, offering a variety of services including IT consulting, digital transformation, cloud infrastructure, AI and automation, cybersecurity, business-process outsourcing, and enterprise systems integration [1]. Stock Performance - Cognizant's shares have experienced an 11.1% decline from their 52-week high of $90.82 and a 12.4% decrease over the past three months, underperforming the Nasdaq Composite, which rose by 8.7% during the same period [3]. - Year-to-date, CTSH stock is down 5%, significantly lagging behind the Nasdaq's nearly 22.1% increase, and has seen a marginal drop over the past 52 weeks compared to the Nasdaq's 19.7% return [4]. - Despite the recent price declines, the stock has been trading above its 50-day and 200-day moving averages since late October and late November, respectively [4]. Earnings and Forecast - Following the Q3 2025 earnings release on October 29, Cognizant's shares surged by 5.7% due to better-than-expected results, reporting an adjusted EPS of $1.39 and revenue of $5.42 billion [5]. - The company raised its full-year adjusted earnings forecast to a range of $5.22–$5.26 per share and increased the lower end of its annual revenue outlook to $21.05 billion, bolstering investor confidence [5]. - Investor enthusiasm is further supported by Cognizant's strong growth initiatives centered around AI and increasing enterprise investments in digital infrastructure [5].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but they also come with higher risks and volatility. Identifying strong growth stocks is challenging, especially if a company's growth phase is ending [1]. Group 1: Growth Stock Identification - The Zacks Growth Style Score system helps investors identify promising growth stocks by analyzing real growth prospects beyond traditional metrics. Cognizant (CTSH) is currently highlighted as a recommended stock with a favorable Growth Score and a top Zacks Rank [2]. - Research indicates that stocks with the best growth features consistently outperform the market, particularly those with a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [3]. Group 2: Earnings Growth - Earnings growth is crucial for investors, with double-digit growth being particularly desirable as it signals strong future prospects. Cognizant's historical EPS growth rate is 7.7%, but projected EPS growth for this year is 10.6%, surpassing the industry average of 10% [4]. Group 3: Asset Utilization and Sales Growth - Cognizant's asset utilization ratio (sales-to-total-assets ratio) is 1.04, indicating that the company generates $1.04 in sales for every dollar in assets, which is higher than the industry average of 0.93, showcasing better efficiency [5]. - The company's sales are expected to grow by 6.7% this year, compared to the industry average of 5.5%, indicating strong sales growth potential [6]. Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are important for stock price movements. Cognizant's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [7]. Group 5: Overall Assessment - Cognizant has achieved a Zacks Rank of 2 and a Growth Score of B, based on various favorable metrics, suggesting it is a potential outperformer and a solid choice for growth investors [9].

Core Insights - Cognizant (CTSH) is currently rated as a 2 (Buy) by Zacks Rank, while Hexagon AB Unsponsored ADR (HXGBY) holds a 3 (Hold) rating, indicating a more favorable outlook for CTSH in terms of earnings estimates [3] - Value investors utilize various traditional metrics to identify undervalued stocks, including P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] Valuation Metrics - CTSH has a forward P/E ratio of 15.26, significantly lower than HXGBY's forward P/E of 24.37, suggesting that CTSH may be undervalued [5] - The PEG ratio for CTSH is 1.64, while HXGBY's PEG ratio is 3.03, indicating that CTSH has a more favorable earnings growth outlook relative to its price [5] - CTSH's P/B ratio stands at 2.6 compared to HXGBY's P/B of 2.71, further supporting the argument that CTSH is more attractively valued [6] Conclusion - Based on stronger estimate revision activity and more attractive valuation metrics, CTSH is positioned as the superior option for value investors compared to HXGBY [7]

Core Insights - Cognizant has announced a strategic partnership with Merchants Fleet to modernize fleet management operations through advanced technology and artificial intelligence [1] - The collaboration aims to enhance efficiency and agility in response to changing business environments and customer needs [1] - Cognizant will utilize AI-powered automation and predictive analytics to transform Merchants Fleet's systems and processes [1] Company Overview - Cognizant is focused on engineering modern businesses by helping clients modernize technology, reimagine processes, and transform experiences [1] - Merchants Fleet is recognized as a leader in comprehensive fleet management solutions, offering both long and short-term fleet services [1] - The partnership reflects a broader industry trend towards integrated technology platforms to address challenges in fleet management [1] Industry Trends - The fleet management industry is experiencing rapid transformation, with organizations modernizing legacy systems and leveraging AI for predictive maintenance and customer experience optimization [1] - Merchants Fleet is positioned as an innovator in the industry, setting the pace for advancements while many organizations are still in the early stages of modernization [1] - The collaboration between Cognizant and Merchants Fleet exemplifies how cross-industry expertise can drive sustainable growth and competitive advantage [1]