Cognizant Technology Solutions Corporation Class A (CTSH)

Cognizant's stock has been influenced by several key events in the past six months. The company reported strong year-over-year revenue growth of 6.7% in constant currency for Q4 2024, driven by large deal signings and improved organic growth. The company's stock price increased by 12.61% between June 25, 2024, and June 24, 2025. On March 25, 2025, Cognizant's board approved a stock repurchase program, allowing the company to buy back up to $2 billion in outstanding shares. The company anticipates a modest sequential margin decline in Q1 2025 due to typical seasonality.

Cognizant experiences some demand seasonality, with a modest sequential margin decline typically observed in the first quarter. The company's services are generally in higher demand due to the ongoing necessity of digital transformation for businesses. Cognizant's strategic focus on enhancing its expertise in specific industry sectors and expanding demand for AI services across various industries helps to manage demand.

Cognizant Technology Solutions Corp. is a global leader in information technology consulting and outsourcing, operating within the IT services, consulting, and outsourcing industries. The company helps clients navigate the digital era by providing a comprehensive suite of IT services, including digital business, technology, consulting, and operations services. Cognizant serves a diverse range of industries, including financial services, healthcare, and manufacturing.

Cognizant maintains a significant global presence with operations across North America, Europe, and Asia-Pacific regions. While headquartered in Teaneck, New Jersey, U.S., approximately 70% of its workforce is based in India, with major centers in cities like Chennai and Bangalore. The company also has business operations in countries such as Argentina, Brazil, France, Germany, Spain, Australia, China, and Japan.

Cognizant has received positive recognition for innovation and client satisfaction, achieving a historic high in client satisfaction scores in 2024 and being named to Fortune's "America's Most Innovative Companies 2025" list for the third consecutive year. Partnerships with Google Cloud and Salesforce contribute to a positive brand image. However, a US jury found Cognizant guilty of discriminatory practices in October 2024, and Infosys filed charges against Cognizant in June 2025, accusing executives of poaching personnel.

Cognizant Technology Solutions Corp. is primarily owned by institutional shareholders, who hold 94.06% of the company. Major institutional owners include Vanguard Group Inc. and BlackRock, Inc. Individual investors hold 5.16% of the shares, while Cognizant insiders own 0.78%.