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Box's Financial Performance: Box shares have declined 13.8% over the past six months, underperforming the industry and sector averages, primarily due to a tough macroeconomic environment and rising operational costs. The company reported flat gross margins and increased operating expenses, leading to a slight contraction in operating margins.

Future Expectations: For fiscal 2026, Box anticipates a gross margin of 81% and an operating margin of 28%. The company expects revenues of $1.175 billion, reflecting an 8% year-over-year growth, and non-GAAP earnings of $1.28 per share, indicating a decrease from the previous fiscal year.

AI and Product Innovations: Box is focusing on enhancing its AI capabilities with new products like Box Extract and Box Automate, which aim to improve data extraction and workflow automation. Partnerships with major tech companies are expected to bolster its AI ecosystem and drive revenue growth.

Customer Growth and Retention: Box has over 2,000 customers paying at least $100K annually, with a net retention rate of 104%. The company is investing in go-to-market initiatives, leading to a 12% year-over-year growth in billings for the third quarter of fiscal 2026.

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.