Can Cognizant’s AI Strategy Reverse Its Market Fortunes?

Cognizant finds itself in a curious position. While the technology sector fiercely competes for lucrative artificial intelligence contracts, this IT services provider delivered a robust quarterly performance, only to face continued selling pressure from skeptical investors. The company’s fundamental strength appears disconnected from its declining share price, creating a classic market dilemma.

For its second quarter of 2025, Cognizant reported financial metrics that surpassed analyst projections across key indicators. The company achieved earnings per share of $1.31, exceeding the anticipated $1.26. Revenue performance was equally impressive, reaching $5.25 billion against expectations of $5.17 billion, representing year-over-year growth of 8.1 percent.

Further strengthening this financial picture, Cognizant demonstrated a return on equity of 16.77 percent and maintained a net margin approaching 12 percent. Despite these solid operational... Read more...