Cognizant's Momentum Accelerates as Enterprise AI Strategy Expands Customer Base

Cognizant Technology Solutions (CTSH) has experienced significant upward movement, with shares gaining 19% over three months—substantially outpacing the Computers IT Services sector’s 3.6% decline while exceeding the broader Computer and Technology sector’s 2.5% appreciation. The driver behind this performance: an aggressive artificial intelligence strategy that’s resonating with an expanding clientele seeking digital transformation.

AI Integration Reshaping the Enterprise Landscape

The company’s strategic emphasis on AI-driven productivity has become the cornerstone of its growth narrative. In Q3 2025 alone, Cognizant secured six megadeals (each exceeding $100 million in total contract value), bringing year-to-date large deal closures to 16—demonstrating robust demand. Year-over-year trailing 12-month bookings increased 5%, while large deal TCV growth accelerated 40% annually, underscoring investor appetite for CTSH’s AI capabilities.

What distinguishes Cognizant’s approach is its systematic deployment across enterprise workflows. The company has now embedded AI across more than 150 use cases spanning finance, operations, sales enablement, and contract pricing. This breadth of application is delivering tangible results: streamlined decision-making, enhanced accuracy, and compressed cycle times. During Q3 2025, AI accounted for approximately 30% of CTSH’s internal code generation, with management projecting this figure could reach 50% within the coming years.

The Flowsource platform—which bridges generative and agentic AI throughout the entire software development lifecycle—has attracted over 70 active clients with an additional 120 prospects in active discussions, illustrating growing market confidence in CTSH’s technological infrastructure.

Financial Guidance Points to Sustained Momentum

Cognizant has charted an optimistic path forward. Fourth-quarter 2025 revenue is projected between $5.27-$5.33 billion, translating to growth of 3.8-4.8% reported (2.5-3.5% constant-currency). The Zacks consensus figure of $5.31 billion aligns closely with management expectations, suggesting 4.4% expansion versus the prior-year quarter.

For the full 2025 fiscal year, revenue guidance spans $21.05-$21.10 billion, implying 6.6-6.9% reported growth and 6-6.3% on a constant-currency basis. The analyst consensus of $21.06 billion projects 6.7% annual growth compared to 2024 results. Adjusted earnings per share for 2025 are guided at $5.22-$5.26.

Earnings Momentum Building

The consensus estimate for Q4 2025 earnings stands at $1.32 per share, up one cent over the past 60 days and reflecting 9.1% year-over-year growth. For full-year 2025, the consensus mark of $5.25 per share has increased 9 cents during the same period, implying 10.5% annual growth relative to 2024 actual earnings—a trajectory suggesting sustained confidence in Cognizant’s execution capacity and AI-driven revenue model.