Cognizant Technology Solutions Corporation Class A (CTSH)

Cognizant completed the acquisition of 3Cloud in January 2026 to capitalize on the demand for Microsoft Azure services. In December 2025, Cognizant announced a multi-year strategic partnership with Microsoft to co-develop and co-sell AI solutions. The company reported strong performance in Q2 2025, with revenue growth and adjusted operating margin surpassing expectations. A quarterly dividend of $0.31 was declared and paid on November 26, 2025. Guggenheim raised its price target for Cognizant in December 2025, noting increased client demand for cost-saving initiatives. CEO Ravi Kumar Singisetti sold 2,950 shares of company stock in December 2025. Cognizant is exploring a potential cross-listing in India, and the company launched an AI Lab in Bengaluru, India, in December 2025.

Demand for Cognizant's services exhibits some seasonality, with the third quarter typically being weaker due to client furloughs and holidays. The Banking and Financial Services sector remains relatively stable. Historically, November has shown the highest probability of positive stock returns for CTSH, while September has the lowest.

Cognizant Technology Solutions Corp. is a global professional services company specializing in IT consulting, technology, and outsourcing. It designs, builds, operates, and manages digital landscapes, offering services like digital strategy, cloud services, data analytics, AI, IoT, and enterprise application services. The company also provides business process outsourcing, digital engineering, quality engineering, application maintenance, infrastructure, and security services. Cognizant serves diverse industries, including financial services, healthcare, retail, manufacturing, communications, automotive, and life sciences.

Cognizant is headquartered in Teaneck, New Jersey, U.S., and has a significant global presence across North America, Europe, and internationally. It has extensive operations and employee bases in numerous countries, including India (Chennai and Hyderabad), the UK, Australia, Hungary, Netherlands, Spain, China, Philippines, Canada, Brazil, Argentina, Mexico, Costa Rica, France, Germany, and Japan.

Cognizant's brand reputation has been shaped by its strong delivery capabilities, industry expertise, and commitment to innovation, including being named on Fortune's America's Most Innovative Companies 2025 list. Strategic partnerships and acquisitions, such as with Microsoft and Belcan, have enhanced its profile. Challenges include a decline in Q1 bookings, reduced client decision-making, subdued IT spending, headcount reduction, and gross margin contraction. The company has also been impacted by H-1B visa fees and has faced historical controversies related to bribery, discrimination, layoffs, and working conditions.

Institutional investors hold a significant majority of Cognizant’s stock, ranging from approximately 81.14% to 97.18%, with Vanguard Group Inc. being the largest individual shareholder at 12.50%. Insider ownership is relatively low, between 0.11% and 0.79%, with more shares sold than purchased recently. Retail investors account for approximately 2.03% to 15.21% of the ownership.