Cognizant Shares Surge Due to Robust AI Initiatives and Growing Client Base
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Source: NASDAQ.COM
Cognizant's Performance: Cognizant Technology Solutions (CTSH) shares have increased by 19% over the past three months, significantly outperforming the Zacks Computers IT Services industry and the broader Computer and Technology sector, driven by strong investments in AI and a series of large contracts.
AI Integration and Growth: The company is focusing on AI-led productivity, with AI generating about 30% of its internal code in Q3 2025, and plans to increase this to 50%. Cognizant has implemented AI across over 150 use cases, enhancing decision-making and operational efficiency.
Revenue and Earnings Projections: For Q4 2025, Cognizant expects revenues between $5.27 billion and $5.33 billion, with a year-over-year growth forecast of 3.8-4.8%. The consensus estimate for 2025 revenues is around $21.06 billion, indicating a growth of 6.7% from 2024.
Market Position and Recommendations: Cognizant holds a Zacks Rank #2 (Buy), while other top-ranked stocks in the sector include Advanced Energy Industries, Digital Turbine, and Kimball Electronics, each with strong long-term earnings growth rates and potential for significant appreciation.
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Analyst Views on CTSH
Wall Street analysts forecast CTSH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CTSH is 87.18 USD with a low forecast of 80.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
5 Buy
10 Hold
0 Sell
Moderate Buy
Current: 82.450
Low
80.00
Averages
87.18
High
100.00
Current: 82.450
Low
80.00
Averages
87.18
High
100.00
About CTSH
Cognizant Technology Solutions Corporation engineers modern businesses. Its services include artificial intelligence (AI) and other technology services and solutions, consulting, application development, systems integration, quality engineering and assurance, application maintenance, infrastructure and security as well as business process services and automation. Its segments include Health Sciences (HS), Financial Services (FS), Products and Resources (P&R), and Communications, Media and Technology (CMT). HS segment consists of healthcare providers and payers, and life sciences companies. FS segment includes banking, capital markets, payments and insurance companies. P&R segment includes manufacturers, automakers, retailers, consumer goods companies, and travel and hospitality companies, as well as businesses providing logistics, energy and utility services. CMT segment includes global communications, media and entertainment, education, information services and technology companies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Massive Contract Value: Belcan Government Solutions has been awarded the SHIELD contract with a ceiling of $151 billion, which will provide a broad range of innovative capabilities for the defense sector, significantly enhancing the company's competitive position in the defense market.
- Rapid Delivery Capability: The contract encompasses multiple work areas that allow for the rapid delivery of innovative capabilities, aimed at increasing the speed and agility of the warfighter, thereby directly supporting the nation's needs in complex defense challenges.
- Strategic Company Positioning: As part of Cognizant, Belcan focuses on delivering high-end differentiated services to federal government agencies, addressing mission-critical client issues and further solidifying its leadership in the government services market.
- Team Expertise Recognition: Surya Gummadi, President of Cognizant Americas, stated that this contract award is a testament to the dedication and expertise of the team, reflecting the company's ongoing commitment to addressing the nation's complex defense challenges.
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