Does Cognizant’s Upgraded EPS Outlook and AI Push Reshape The Bull Case For Cognizant (CTSH)?

Cognizant Technology Solutions, which announced its fiscal Q4 2025 results on February 4, 2026, had previously raised full-year adjusted EPS guidance to US$5.22–US$5.26 and increased the lower end of its annual revenue forecast to US$21.05 billion, following several quarters of outperforming Wall Street earnings expectations. Investor enthusiasm has been supported by Cognizant’s AI-focused growth plans and expectations that enterprises will increase spending on digital infrastructure and transformation projects. With optimism centered on Cognizant’s upgraded profit outlook and AI-driven growth focus, we’ll assess how this news reshapes its investment narrative. Find companies with promising cash flow potential yet trading below their fair value.Cognizant Technology Solutions Investment Narrative RecapTo stay invested in Cognizant, you need to believe its AI-heavy consulting and outsourcing model can keep attracting large digital transformation deals without being squeezed by automation or intense competition. The upcoming Q4 2025 results on February 4, 2026, and the recent lift in full-year adjusted EPS guidance to US$5.22–US$5.26 put near term focus on execution against these expectations, while a key risk remains how fast generative AI might reduce demand for traditional, labor-intensive services. The most relevant recent development here is Cognizant’s decision on October 29, 2025, to raise the lower end of its annual revenue outlook to US$21.05 billion after Q3 2025 results topped expectations. That update, together with continued earnings beats, frames the upcoming Q4 release as a test of whether AI-focused growth and large deal momentum can still offset margin pressures and competitive threats in IT services. Yet even with raised guidance and AI optimism, investors should be aware that accelerating client adoption of generative AI could eventually... Read the full narrative on Cognizant Technology Solutions (it's free!)Cognizant Technology Solutions’ narrative projects $23.5 billion revenue and $2.9 billion earnings by 2028.Uncover how Cognizant Technology Solutions' forecasts yield a $85.22 fair value, in line with its current price.Exploring Other PerspectivesCTSH 1-Year Stock Price Chart Eight fair value estimates from the Simply Wall St Community span roughly US$66 to US$125 per share, showing how differently investors can view Cognizant’s prospects. Against this wide range, the current focus on AI driven deal wins and raised 2025 guidance highlights why you may want to compare several viewpoints before forming your own expectations about future performance.Explore 8 other fair value estimates on Cognizant Technology Solutions - why the stock might be worth as much as 46% more than the current price!Build Your Own Cognizant Technology Solutions NarrativeDisagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.A great starting point for your Cognizant Technology Solutions research is our analysis highlighting 3 key rewards that could impact your investment decision.Our free Cognizant Technology Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cognizant Technology Solutions' overall financial health at a glance.Contemplating Other Strategies?Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:We've found 12 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.