Zacks Industry Outlook Cognizant, Tyler, Guidewire and Q2 Holdings

Industry Overview - The Zacks Business-Software Services industry is benefiting from increased demand for digital transformation and cloud adoption, driven by automation and growing enterprise data volumes [1] - The industry consists of companies delivering application-specific software products and services, including finance, sales & marketing, human resources, and supply chain applications [4] - Key end markets include manufacturing, retail, banking, insurance, telecommunications, healthcare, and public sectors [5] Key Trends - Transition to cloud-based solutions is creating opportunities, with companies incorporating AI to enhance application functionality [6] - Subscription-based revenue models are gaining traction, providing higher recurring revenues but potentially impacting near-term top-line growth [7] - Continuous mergers and acquisitions are expanding product offerings, though profitability may be affected by increased digital investments [8] - Worldwide IT spending is forecasted to grow 9.3% to $5.74 trillion in 2025, with software spending expected to increase 14$2.11 per share [16][17][18] - Cognizant: Offers digital services, consulting, and infrastructure services, with a 1.8% share price increase in 2024 and a 2025 earnings estimate of $4.97 per share [19][20][21] - **Tyler Technologies**: Provides integrated information management solutions to the public sector, with shares up 39$10.89 per share [21][22][23] - Guidewire Software: Offers software solutions for property and casualty insurers, with shares up 54.6% in 2024 and a 2025 earnings estimate of $2.06 per share [23][24][25]