Cognizant(US:CTSH) ZACKS·2026-01-05 17:06Core Insights - Cognizant Technology Solutions (CTSH) has completed the acquisition of 3Cloud, enhancing its Azure, data, and AI capabilities, and solidifying its partnership with Microsoft [1][11] Group 1: Acquisition Details - The acquisition of 3Cloud adds over 1,000 Azure experts and more than 1,500 Microsoft certifications to CTSH's capabilities, expanding its workforce to nearly 21,000 Azure-certified associates globally [2][11] - 3Cloud has achieved a 20% organic CAGR since 2020 and is expected to continue expanding by over 20% in 2025, driven by strong demand for Microsoft Azure solutions [3] Group 2: Financial Performance - CTSH shares have increased by 19.9% over the past three months, outperforming the Zacks Computers IT Services industry's decline of 6.7% and the broader Zacks Computer and Technology sector's growth of 2.2% [4] - In Q3 2025, CTSH signed six large deals, each with a total contract value of $100 million or more, bringing the year-to-date total to 16, with trailing 12-month bookings growing by 5% year over year [5] - The total contract value of Cognizant's large deals increased by 40% year over year [5] Group 3: AI Integration and Productivity - Cognizant is focusing on AI-led productivity, with AI generating approximately 30% of its internal code in Q3 2025, expected to reach 50% in the coming years [6] - The company has integrated AI across more than 150 use cases, enhancing decision-making and operational efficiency [7] Group 4: Revenue Guidance - For Q4 2025, Cognizant expects revenues between $5.27 billion and $5.33 billion, indicating growth of 3.8-4.8% [8] - The Zacks Consensus Estimate for Q4 2025 earnings is $1.32 per share, reflecting a growth of 9.1% year over year [9] - For the full year 2025, revenues are projected to be between $21.05 billion and $21.10 billion, representing a growth of 6.6-6.9% [9]