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]

Core Insights - Cognizant has launched the Enterprise Vibe Coding Blueprint, a suite of services designed to help Global 2000 organizations implement AI-assisted coding across various teams securely and at scale [2][3] - The initiative aims to empower employees, foster innovation, and facilitate a culture change within organizations by enabling rapid prototyping and collaboration [3][4] Group 1: Product Offering - The Enterprise Vibe Coding Blueprint includes advisory support, tool selection, security guardrails, and prototype evaluation to streamline the operationalization of AI-assisted coding [5][6] - Cognizant's approach is based on insights and tools developed during the record-setting Vibe Coding Week, which was recognized by Guinness World Records as the largest online generative AI-assisted coding event [2][6] Group 2: Market Demand and Impact - The suite is designed in response to sustained client demand for innovative solutions that bridge the gap between business intent and software delivery, particularly in large enterprises [3][4] - The Vibe Coding initiative has already seen significant participation, with over 250,000 employees registered and more than 32,000 prototype applications developed during the event [6] Group 3: Strategic Vision - Cognizant's CEO emphasizes that AI-first enterprises will differentiate themselves by empowering employees with structured tools for innovation [4] - The Vibe Coding Blueprint aims to democratize AI innovation by combining governance, enablement, and rapid prototyping to achieve tangible business outcomes [6]