Maggie Nolan Initiates Buy on Cognizant, Citing Strong Margin Expansion, Robust Financial Services Growth and Favorable AI-Driven Demand Trends

William Blair analyst Maggie Nolan has reiterated their bullish stance on CTSH stock, giving a Buy rating on July 27.

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Maggie Nolan’s rating is based on Cognizant’s ability to deliver revenue and margin performance that exceeded market expectations, even as EPS was slightly soft versus the Street. She views the company’s solid constant-currency growth, particularly in North America and in ramping large deals, as evidence that demand trends remain favorable and that the sales engine is executing well.

She has given her Buy rating due to a combination of factors, including robust, double‑digit growth in financial services, which she sees as an important early indicator of rising AI‑related spending. Nolan also highlights the sixth consecutive quarter of operating margin expansion, reflecting sustainable efficiency and productivity improvements, and believes this profitability trajectory, alongside resilient bookings, supports further upside in the stock despite tempered top‑line guidance.

According to TipRanks, Nolan is an analyst with an average return of -9.2% and a 40.72% success rate. Nolan covers the Technology sector, focusing on stocks such as Endava, Cognizant, and Exlservice Holdings.

In another report released on July 27, Guggenheim also maintained a Buy rating on the stock with a $65.00 price target.