Core Viewpoint - Cognizant is set to announce its fourth quarter results for 2025 on February 4, 2026, before the market opens [1] Group 1: Earnings Announcement - The announcement will be followed by a conference call at 8:30 a.m. (Eastern) to discuss the operating performance for the quarter [2] - Domestic callers can participate by dialing 877-810-9510, while international callers can dial 201-493-6778, using the passcode "Cognizant Call" [2] Group 2: Conference Call Access - The conference call will be available live on Cognizant's Investor Relations website [3] - Participants are advised to register at least 15 minutes prior to the call and to download any necessary audio software [3] Group 3: Replay Information - For those unable to access the live broadcast, a replay will be available by dialing (877) 660-6853 for domestic callers or (201) 612-7415 for international callers, using the code 13757577 [4] - The replay will be accessible for two hours after the call until February 18, 2026, and will also be available on Cognizant's website for 60 days following the call [4] Group 4: Company Overview - Cognizant is a leading provider of information technology, consulting, and business process services, focused on modernizing technology and transforming business processes [5] - The company aims to help clients stay ahead in a fast-changing world [5]

Core Insights - Cognizant Technology Solutions (CTSH) has completed the acquisition of 3Cloud, enhancing its Azure, data, and AI capabilities, and solidifying its partnership with Microsoft [1][11] Group 1: Acquisition Details - The acquisition of 3Cloud adds over 1,000 Azure experts and more than 1,500 Microsoft certifications to CTSH's capabilities, expanding its workforce to nearly 21,000 Azure-certified associates globally [2][11] - 3Cloud has achieved a 20% organic CAGR since 2020 and is expected to continue expanding by over 20% in 2025, driven by strong demand for Microsoft Azure solutions [3] Group 2: Financial Performance - CTSH shares have increased by 19.9% over the past three months, outperforming the Zacks Computers IT Services industry's decline of 6.7% and the broader Zacks Computer and Technology sector's growth of 2.2% [4] - In Q3 2025, CTSH signed six large deals, each with a total contract value of $100 million or more, bringing the year-to-date total to 16, with trailing 12-month bookings growing by 5% year over year [5] - The total contract value of Cognizant's large deals increased by 40% year over year [5] Group 3: AI Integration and Productivity - Cognizant is focusing on AI-led productivity, with AI generating approximately 30% of its internal code in Q3 2025, expected to reach 50% in the coming years [6] - The company has integrated AI across more than 150 use cases, enhancing decision-making and operational efficiency [7] Group 4: Revenue Guidance - For Q4 2025, Cognizant expects revenues between $5.27 billion and $5.33 billion, indicating growth of 3.8-4.8% [8] - The Zacks Consensus Estimate for Q4 2025 earnings is $1.32 per share, reflecting a growth of 9.1% year over year [9] - For the full year 2025, revenues are projected to be between $21.05 billion and $21.10 billion, representing a growth of 6.6-6.9% [9]

Core Insights - Cognizant has finalized the acquisition of 3Cloud, a Microsoft Azure services provider, effective January 1, 2026, with the aim to enhance its capabilities in Azure, data, AI, and cloud-based application innovation [1][4] - The acquisition will add approximately 1,200 employees to Cognizant's workforce, including around 700 based in the US, and increase its roster of Azure-certified professionals to over 21,000 globally [1][2] Company Strategy - The integration of 3Cloud is expected to strengthen Cognizant's strategic partnership with Microsoft and enhance its enterprise-scale digital and AI transformation offerings [2][5] - Cognizant's CEO emphasized that the acquisition is a significant step towards becoming a leading AI builder for enterprises, leveraging 3Cloud's expertise in Azure, data, and AI [4] Financial Performance - 3Cloud has experienced significant growth under Gryphon Investors, with an average annual organic growth rate exceeding 20% since 2020 [3] - Financial details of the acquisition have not been disclosed [3] Market Context - The demand for AI-led business transformation using Microsoft Azure platforms is increasing, which aligns with Cognizant's strategy to broaden its portfolio of Azure-related services [5] - Microsoft's Azure and related cloud services reported a year-on-year growth rate of 40% in Q3 2025, indicating a robust market for cloud services [6]

Core Insights - Gryphon Investors has completed the sale of its portfolio company 3Cloud, a dedicated Microsoft Azure services provider, to Cognizant Technology Solutions Corporation [1] Company Overview - 3Cloud, founded in 2016 and headquartered in Chicago, Illinois, specializes in Microsoft Azure solutions, including AI enablement, modern data engineering, and Azure managed services [2][5] - The company has grown organically at over 20% per year since Gryphon's initial investment in June 2020, increasing its scale by approximately 12 times [2] Transaction Details - The transaction was initially announced on November 13, 2025, with financial terms not disclosed [1] - Gryphon was represented by Lazard for transaction advisory and Kirkland & Ellis for legal matters, while Cognizant was represented by Mayer Brown [3] Gryphon Investors Overview - Gryphon Investors is a middle-market private investment firm with over $10 billion in assets under management, focusing on sectors such as Business Services, Healthcare, and Technology Solutions [4] - The firm emphasizes forming strong partnerships with management teams to build high-quality companies and generate enduring value [4]

Core Viewpoint - Investors are evaluating the value opportunities between Cognizant (CTSH) and Accenture (ACN) in the IT Services sector, with a focus on which stock presents a better investment at the current time [1] Valuation Metrics - Cognizant (CTSH) has a forward P/E ratio of 16.22, while Accenture (ACN) has a forward P/E of 19.59, indicating that CTSH may be undervalued compared to ACN [5] - The PEG ratio for CTSH is 1.74, suggesting a more favorable growth outlook relative to its price, whereas ACN has a PEG ratio of 2.61, indicating a higher valuation for its expected growth [5] - CTSH's P/B ratio stands at 2.76, compared to ACN's P/B of 5.58, further supporting the notion that CTSH is more attractively valued [6] Zacks Rank and Earnings Outlook - Currently, Cognizant holds a Zacks Rank of 2 (Buy), while Accenture has a Zacks Rank of 3 (Hold), reflecting a more positive earnings estimate revision trend for CTSH [3] - The Zacks Rank system emphasizes companies with improving earnings outlooks, which is favorable for CTSH, making it a more appealing option for value investors [3][7] Value Grades - Based on various valuation metrics, CTSH has received a Value grade of B, while ACN has a Value grade of C, indicating that CTSH is perceived as a better value investment at this time [6]

Core Insights - Cognizant and Microsoft have established a multi-year partnership to enable global enterprises to implement AI solutions [1] - The collaboration focuses on developing industry-grade AI technologies for sectors such as financial services, healthcare, retail, and manufacturing [1][2] - The partnership aims to enhance productivity, customer experience, and operational resilience through the integration of AI into business processes [3] Partnership Details - The agreement includes global co-selling of AI solutions and collaboration on significant deals within targeted industries [1] - Cognizant will promote the adoption of Microsoft 365 Copilot and GitHub Copilot, while providing training in Microsoft Azure and related technologies [4] - The partnership will leverage Cognizant's proprietary platforms like TriZetto, Skygrade, and FlowSource for sector-specific developments [4] Strategic Goals - Cognizant's CEO emphasized the importance of AI in transformation programs and the goal to co-build scalable solutions that deliver measurable outcomes [5] - The initiative aims to combine Microsoft's cloud and AI capabilities with Cognizant's industry platforms to address the challenge of scaling AI across enterprises [5]

Core Viewpoint - Cognizant has announced a multi-year strategic partnership with Microsoft to assist global enterprises in transforming into "AI-driven frontier enterprises" by reshaping work methods and responsibly scaling innovation [1] Group 1: Partnership Details - The partnership will focus on building industry-level AI solutions and joint sales efforts across key sectors such as financial services, healthcare and life sciences, retail, and manufacturing [2] - The collaboration aims to integrate agent-based AI and Copilot into critical workflows, enhancing productivity, customer experience, and operational resilience [2] Group 2: Strategic Alignment - Cognizant's CEO, Ravi Kumar S, emphasized that AI is central to all transformation initiatives and that the partnership aligns with their three-vector AI building strategy to create scalable solutions [4] - The partnership will leverage Microsoft’s trusted cloud and AI capabilities alongside Cognizant’s industry platforms to address the "last mile" challenge of scaling AI in enterprises [4] Group 3: Implementation and Talent Development - Cognizant plans to scale the application of Microsoft 365 Copilot and GitHub Copilot within its delivery and consulting teams while enhancing employee skills in Microsoft Azure and related technologies [4] - The collaboration will also utilize Cognizant's proprietary platforms, such as TriZetto, Skygrade, and FlowSource™, to upgrade industry-specific capabilities and modernize software engineering at scale [4] Group 4: Innovation and Value Creation - Microsoft’s CEO, Judson Althoff, highlighted the combination of Cognizant's industry expertise and innovative approach as a key factor in their partnership, aiming to accelerate the creation of embedded industry-specific solutions for global clients [5]

Core Insights - Two stocks in the information technology sector are showing signs of being overbought, which may concern momentum-focused investors [1][2] Company Summaries - **Cognizant Technology Solutions Corp (NASDAQ:CTSH)**: - Entered a five-year IT services agreement with ERIKS, enhancing their strategic partnership [5] - Stock price increased approximately 17% over the past month, reaching a 52-week high of $90.82 [5] - RSI value stands at 78.4, indicating overbought conditions [5] - Current stock price closed at $83.63 [5] - Momentum score is 47.50 with a value score of 58.38 [5] - **Semrush**: - Launched an official app in ChatGPT, aimed at improving data-driven marketing efficiency [5] - Stock price surged around 75% over the past month, with a 52-week high of $18.74 [5] - RSI value is at 81.4, also indicating overbought conditions [5] - Current stock price closed at $11.86 [5]

Core Insights - Two stocks in the information technology sector are showing signs of being overbought, which may concern momentum-focused investors [1][2] Company Summaries - **Cognizant Technology Solutions Corp (NASDAQ:CTSH)**: - Entered a five-year IT services agreement with ERIKS, enhancing their strategic partnership [5] - Stock price increased approximately 17% over the past month, reaching a 52-week high of $90.82 [5] - RSI value stands at 78.4, indicating overbought conditions [5] - Current stock price is $83.63, with a momentum score of 47.50 and a value score of 58.38 [5] - **Semrush**: - Launched an official app in ChatGPT, aimed at improving data-driven marketing efficiency [5] - Stock price surged around 75% in the last month, achieving a 52-week high of $18.74 [5] - RSI value is at 81.4, also indicating overbought conditions [5] - Current stock price is $11.86 [5]

Core Insights - Cognizant has announced a strategic collaboration with Bupa Hong Kong to implement an AI-driven Business-Process-as-a-Service (BPaaS) solution for claims modernization, marking the largest Intuitive Operations and Automation (IOA) services deal for Cognizant in Hong Kong [1][2] Company Overview - Cognizant specializes in modernizing technology, reimagining processes, and transforming experiences to help clients stay competitive in a rapidly changing environment [4] - Bupa is an international healthcare group with over 70 years of experience, serving more than 38 million customers globally, and reinvesting profits to enhance healthcare services [5] Collaboration Details - The BPaaS solution will integrate cloud-native technologies, generative AI-led claims automation, and comprehensive fraud, waste, and abuse (FWA) detection to enhance Bupa's productivity and regulatory compliance [2] - The collaboration aims to improve key performance indicators (KPIs) for Bupa, including faster claims processing, increased customer satisfaction, and greater operational efficiency [2][3] Strategic Goals - Bupa Hong Kong aims to leverage this collaboration to streamline claims processing, reduce operational friction, and mitigate risks, ultimately enhancing customer satisfaction and regulatory compliance [3] - Cognizant emphasizes the importance of data in transformative AI, aiming to address data debt and fuel intelligent systems that adapt and scale according to client-defined parameters [3]