Cognizant Raises Profit Outlook as Financial Services Revenue Jumps 12%
CTSH sits 50% above its 52-week low of $37.08 on light trading volume (0.4× avg).
Summary
Cognizant lifted its full-year adjusted EPS guidance to $5.70–$5.82, above the prior $5.63–$5.77, driven by a 12% surge in its largest segment, Financial Services. The company also completed the $634M acquisition of AI infrastructure firm Astreya and launched Project Leap, an AI-focused transformation program. Q3 revenue guidance of $5.60B–$5.68B came in slightly below the $5.70B consensus, but the market focused on the raised annual outlook, sending shares up 10%. This follows the Q2 earnings release earlier today and builds on a series of AI partnership expansions with Snowflake and Google Cloud. The strong financial services demand and margin expansion offset higher costs and discretionary spending caution.
At the time of this announcement, CTSH was trading at $55.63 on NASDAQ in the Technology sector, with a market capitalization of approximately $26.4B. The 52-week trading range was $37.08 to $87.03. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Reuters.