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 Technology Solutions (CTSH) shares have increased by 9.8% over the past month, outperforming the broader Zacks Computer & Technology sector, which rose by 1.1% [1] - The company is experiencing growth due to investments in AI, a strong client base, and an expanding partner network [2][3] Financial Performance - In Q3 2025, Cognizant secured six large deals with a total control value (TCV) of $100 million or more, bringing the year-to-date total to 16 [2] - The operating margin improved by 70 basis points year-over-year in Q3 2025, with expectations for a 15.7% adjusted operating margin in 2025, up 40 basis points from 2024 [2] - Fourth-quarter 2025 revenue is projected to be between $5.27 billion and $5.33 billion, indicating growth of 3.8-4.8% [8] - The Zacks Consensus Estimate for fourth-quarter 2025 revenues is $5.31 billion, reflecting a year-over-year growth of 4.43% [9] - For 2025, revenues are expected to be between $21.05 billion and $21.10 billion, indicating growth of 6.6-6.9% [10] AI and Technology Integration - Cognizant's partnership with Anthropic is enhancing its AI ecosystem, integrating tools to help clients embed AI into their operations [3][5] - The company’s AI-led productivity strategy has resulted in approximately 30% of internal code being AI-generated in Q3 2025, with expectations to reach 50% in the future [6] - Cognizant's Flowsource platform, which integrates generative and agentic AI, has gained traction with over 70 clients [7] Partnerships and Services - An expanded partnership with Rubrik aims to provide Business Resilience-as-a-Service (BRaaS) to help clients recover from cyber incidents [4] - The integration of Anthropic's tools is expected to enhance client capabilities in managing performance, risk, and spending [3]