Cognizant Technology Solutions Corporation Class A (CTSH)

In the past six months, Cognizant's stock price has been impacted by several events. In Q2 2025, the company reported earnings per share of $1.31 and revenue of $5.25 billion, surpassing estimates, but the stock initially closed down. Cognizant announced an expanded partnership with Rubrik to launch Business Resilience-as-a-Service (BRaaS) and was selected by AP Pension for BPO and RPA services. SmartestEnergy engaged Cognizant to strengthen its cybersecurity. CTSH hit a new 52-week low of $65.15 on October 17, 2025, and has shown a decrease of 9.50% over the last year. Declining gross margins and insider selling activity have been noted as potential risks. Cognizant is scheduled to report its Q3 2025 results on October 29, 2025.

There is no clear indication of inherent demand seasonality for Cognizant Technology Solutions Corp.'s products and services. However, the company has experienced soft demand for discretionary projects as clients prioritize cost-cutting initiatives. Weak demand in the products and resources segment has also been noted due to tariff policy concerns and spending pressures. Stock seasonality exists, with November showing the highest probability of a positive return for CTSH stock and August the lowest, but this pertains to stock performance rather than the demand for the company's offerings.

Cognizant Technology Solutions Corp. is a global professional services company specializing in IT consulting, outsourcing, and professional services. It operates in the Technology sector, focusing on IT services, consulting, cloud computing, and data analytics. The company assists clients in modernizing technology, reimagining business processes, and transforming customer experiences through emerging technologies like AI and cloud computing. Cognizant's services include digital strategy, cloud services, data analytics, AI, IoT, BPO, and more, with revenue reported through Financial Services, Health Sciences, Products and Resources, and Communications, Media & Technology segments.

Cognizant has a significant global presence with nearly 350,000 employees worldwide. It operates across the Americas, Europe, the Middle East, and Asia-Pacific regions. Approximately 70% of its workforce is based in India, with major operations in the US, Argentina, Brazil, France, Germany, Spain, Australia, China, Japan, the UK, Hungary, Netherlands, Philippines, Canada, Mexico, and Costa Rica. North America accounts for the largest share of Cognizant's revenue, followed by Europe and the Rest of the World.

In the past year, Cognizant has received positive recognition, being included in Forbes' List of the World's Best Employers 2025 and recognized as a Leader in the Everest Group CPG Services PEAK Matrix® Assessment 2025. Historically, Cognizant has faced various criticisms and controversies, including allegations of bribery, Companies Act violations, discrimination, layoffs, and tax evasion in India, as well as concerns regarding working conditions in Ireland and the United States, corruption, a lawsuit with Crawford & Company, and wage theft and H-1B visa violations in the United States.

Institutional investors and hedge funds hold a significant majority of Cognizant Technology Solutions Corp. stock, owning 92.44% of the company's shares. Major institutional owners include Asset Management One Co. Ltd., VIRGINIA RETIREMENT SYSTEMS ET Al, Mirae Asset Global Investments Co. Ltd., LBP AM SA, Leo Wealth LLC, Envestnet Asset Management Inc., Golden State Wealth Management LLC, Zions Bancorporation National Association UT, Hilltop National Bank, Geneos Wealth Management Inc., and WPG Advisers LLC.