Cognizant

CTSH

Market cap $41.6B

Despite a decade-long gross margin decline, Cognizant has maintained stable net margins near 11% by reducing SG&A as a share of revenue. Structural margin pressure persists due to Indian wage inflation, limited pricing power, and intense competition from Infosys and Wipro. Management's focus on cost control, AI-driven productivity, and portfolio mix supports margin stability, but sustained expansion remains challenging in a cost-sensitive market.

I maintain my 'Buy' rating for Cognizant Technology Solutions, following my analysis of its key corporate moves. The latest 3Cloud M&A deal is expected to enhance CTSH's growth profile by leveraging on the strong demand for Microsoft's Azure. The company is looking at a potential cross-listing in India; I think this can be a positive trigger to re-rate the stock.

TEANECK, N.J., Jan. 7, 2026 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading provider of information technology, consulting, and business process services, will announce results for the fourth quarter of 2025 on Wednesday, February 4, 2026 before market open.

CTSH expands Azure, AI and Microsoft ties with 3Cloud deal as shares surge nearly 20% and strong 2025 growth guides investor optimism.

SAN FRANCISCO, Jan. 2, 2026 /PRNewswire/ -- Gryphon Investors ("Gryphon"), a leading middle-market private investment firm, announced today that it has completed the sale of its portfolio company 3Cloud ("the Company"), a highly scaled dedicated Microsoft Azure services provider, to Cognizant Technology Solutions Corporation (NASDAQ: CTSH). The transaction was originally announced on November 13, 2025.

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The collaboration will co-innovate to deliver AI-powered solutions, combining Microsoft's trusted cloud with Cognizant's industry platforms to help organizations redefine work and scale innovation. TEANECK, N.J.

As of Dec. 18, 2025, two stocks in the information technology sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.