Core Insights - ServiceNow (NOW) shares have decreased by 29.9% over the past year, underperforming the Zacks Computer and Technology sector's growth of 25.1% and the Zacks Computers IT Services industry's decline of 19.1% [1][7] - The decline is attributed to a challenging macroeconomic environment and a slowdown in subscription revenue growth [1][7] - The company's fourth-quarter 2025 guidance indicates tightening budgets from U.S. federal agencies, which is expected to negatively impact subscription revenues [1] Subscription Revenue Guidance - ServiceNow has raised its 2025 subscription revenue guidance to between $12.835 billion and $12.845 billion, reflecting a 20% growth on a non-GAAP constant currency basis and 20.5% on a reported basis compared to 2024 [2] - This growth rate is slower than the 23% subscription revenue growth rate achieved in 2024 [2] Valuation and Performance - NOW shares are currently considered overvalued, with a Value Score of F, trading at a forward 12-month price/sales ratio of 9.77X compared to the broader sector's 7.42X [5] - The shares are trading below both the 50-day and 200-day moving averages, indicating a bearish trend [8] AI and Partnerships - ServiceNow's AI products are projected to exceed $0.5 billion in Annual Contract Value (ACV) by 2025, with a target of reaching $1 billion by 2026 [11] - The company has expanded its partner base, including collaborations with NVIDIA and Microsoft, to enhance its AI capabilities and enterprise traction [12][13] Acquisitions - ServiceNow has been actively expanding its portfolio through acquisitions, including Logik.io, data.world, and Moveworks, which enhance its AI and workflow capabilities [16] - The acquisition of Veza strengthens its security and risk management offerings, while the $7.75 billion acquisition of Armis aims to bolster its cyber exposure management capabilities [17] Earnings Estimates - The Zacks Consensus Estimate for NOW's fourth-quarter 2025 earnings is 87 cents per share, indicating a 19.2% growth compared to the previous year [18] - The consensus estimate for 2025 earnings is $3.46 per share, suggesting a 24.5% growth over 2024 [18] - For 2026, the earnings estimate is projected at $4.04, reflecting a 16.6% growth over the 2025 estimate [19] Conclusion - ServiceNow's acquisition-driven portfolio expansion, increasing workflow adoption, and strong partner relationships are expected to enhance top-line growth in 2026 [20] - However, the challenging macroeconomic environment and high valuation remain concerns [20]

Key Takeaways Cognizant has acquired 3Cloud, boosting Azure, AI capabilities and strengthening its Microsoft partnership.The deal adds 1,000 Azure experts and expands CTSH's reach across key industry verticals.The deal adds 1,000 Azure experts and expands CTSH's reach across key industry verticals.Cognizant Technology Solutions (CTSH) has completed the previously announced acquisition of 3Cloud, a leading Microsoft (MSFT) Azure services provider. The deal strengthens CTSH’s Azure, data and AI capabilities, ...

Core Insights - Cognizant Technology Solutions (CTSH) shares have increased by 19% over the past three months, outperforming the Zacks Computers IT Services industry's decline of 3.6% and the broader Zacks Computer and Technology sector's growth of 2.5% [1] - The company is experiencing growth due to its investments in AI, which are driving enterprise expansion [1] Financial Performance - In Q3 2025, Cognizant signed six large deals, each with a total contract value (TCV) of $100 million or more, bringing the year-to-date total to 16 deals [1] - Trailing 12-month bookings increased by 5% year over year, with the TCV of large deals growing by 40% year over year [1] - For Q4 2025, revenues are expected to be between $5.27 billion and $5.33 billion, indicating growth of 3.8-4.8% [3] - The Zacks Consensus Estimate for Q4 2025 revenues is currently at $5.31 billion, suggesting a 4.4% increase compared to the previous year [3] Revenue and Earnings Guidance - For the full year 2025, revenues are projected to be between $21.05 billion and $21.10 billion, reflecting a growth of 6.6-6.9% [4] - The Zacks Consensus Estimate for 2025 revenues is at $21.06 billion, indicating a 6.7% increase from 2024 [4] - Adjusted earnings for 2025 are expected to be between $5.22 and $5.26 per share [4] Earnings Estimate Revisions - The Zacks Consensus Estimate for Q4 2025 earnings is $1.32 per share, reflecting a 9.1% growth from the previous year [5] - The consensus for 2025 earnings is $5.25 per share, indicating a 10.5% increase from 2024 [5] 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 [2] - The company has integrated AI across more than 150 use cases, enhancing decision-making and operational efficiency [3] - The Flowsource platform, which incorporates generative and agentic AI, has been utilized by over 70 clients, with an additional 120 in the pipeline [3]

Key Takeaways ServiceNow raised the 2025 subscription revenue guidance to up to $12.845B, signaling 20.5% annual growth. AI product adoption is surging, with 2025 ACV seen topping $0.5B and on track to hit $1B in 2026. Expanded deals with NVDA, MSFT and Figma deepen NOW's enterprise AI and workflow integrations. ServiceNow (NOW) shares have plunged 25.4% in the past year, underperforming the Zacks Computer and Technology sector’s appreciation of 25.4% and the Zacks Computers IT Services industry’s fall of 1 ...

Company Overview & Market Position - Vertiv Holdings (VRT) is a global designer and manufacturer of digital infrastructure technologies for communication networks and data centers [2] - Vertiv partners with Nvidia in a high-density reference design for extreme power and thermal requirements of Nvidia's 72 GPU rack scale systems [3] - Coherent Corporation is a global leader in lasers, optics, and photonic components used across various industries including AI [16] - Coherent is emerging as an important player in AI due to the shift towards silicon and photonics-based networking in data centers [15][19] Industry & Ranking - Vertiv Holdings is part of the Zach's Computers IT Services Industry Group, ranked in the top 32% [7] - The top 50% of Zach's ranked industries outperforms the bottom 50% by a factor of more than 2:1 [8] - Coherent has a Zach Rank of 2, driven by analyst upgrades [22] Financial Performance & Estimates (Vertiv) - Vertiv has delivered a 1489% average earning surprise over the last four quarters [9] - Vertiv reported third-quarter earnings of $124 per share, a 24% beat versus the Zach's consensus estimate, with earnings growing 63% from the same period last year [10] - Estimates for Vertiv's fourth quarter have been increased by 323% in the past 60 days [11] - Vertiv's Q4 Zach's consensus estimate now stands at $128 per share, reflecting potential growth of nearly 30% relative to the year-ago period [12] - Vertiv's revenues in the fourth quarter are projected to climb more than 22% to $286 billion [12] Financial Performance & Estimates (Coherent) - Analysts covering Coherent have unanimously upgraded their earnings estimates [22] - Coherent's current quarter estimates have jumped by 8%, next quarter is up by 95% [22] - Coherent's current year estimates have increased by almost 10% over the last 30 days, and next year earnings estimates have risen by 4% [23] - Coherent's sales are expected to grow 15% this year and 145% next year [23] - Coherent's earnings are expected to grow 256% annually over the next three to five years [25] Stock Performance & Valuation - Vertiv (VRT) stock is up nearly 200% off the April lows [12] - Coherent's stock is up approximately 50% this year and has tripled from the April lows from $50 to $161 [26] - Coherent is trading at 327 times forward earnings [25]

Core Insights - Leidos Holdings, Inc. (LDOS) presents a strong investment opportunity due to rising earnings estimates, robust return on equity (ROE), a solid backlog, and consistent shareholder returns [1] Growth Outlook & Surprise History - The Zacks Consensus Estimate for LDOS' 2025 earnings per share (EPS) has increased by 2.8% to $11.07 over the past 30 days [2] - The total revenue estimate for 2025 stands at $17.15 billion, indicating a growth of 2.9% [2] - LDOS has a long-term earnings growth rate of 7.7% and has surpassed earnings estimates in the last four quarters with an average earnings surprise of 25.13% [2] Return on Equity - LDOS has a return on equity (ROE) of 33.57%, significantly higher than the industry average of 20.01%, indicating effective fund utilization [3] Solvency & Liquidity Position - The times interest earned (TIE) ratio for LDOS at the end of Q2 2025 was 10.3, suggesting the company can meet its interest obligations comfortably [4] - The current ratio was 1.62, indicating the company can meet its short-term liabilities without difficulty [4] Rising Backlog - Leidos has secured significant contract wins from the Pentagon and other U.S. allies, contributing to a backlog of $46.21 billion as of July 4, 2025, up from $41.55 billion a year earlier, enhancing revenue visibility [5][8] Return to Shareholders - Leidos has consistently increased shareholder value through dividends, currently paying a quarterly dividend of 40 cents per share, resulting in an annualized dividend of $1.60 and a dividend yield of 0.89%, surpassing the sector average of 0.61% [6] Stock Performance - Over the past six months, LDOS shares have increased by 40.4%, while the industry has seen a decline of 12.7% [9]