Cognizant Technology Solutions Corporation

Q3 headline performance: solid growth + best margin in 4 years (AI-driven execution) - Revenue: $5.7B, +4.8% YoY in constant currency. - Adjusted operating margin: 16.3%, up 30 bps YoY and described as the highest level in 4 years. - AI/production momentum: management estimates >50% of software development was AI-assisted by end of Q3 and reports >8,500 AI engagements. - Bookings: trailing 12-month bookings up 4%; book-to-bill 1.3x; new bookings +16% YTD (with a mix shift toward new/expanded).

Portfolio + demand strength: Financial Services strong; discretionary softness shows up in guidance - Financial Services accelerated to +12% YoY constant-currency growth for the third consecutive quarter of double-digit growth. - North America strong; inorganic tailwinds from 3Cloud and Astreya and an “integrated offering” approach combining services + software + infrastructure + security. - Weakness/challenge: macro uncertainty is increasingly pressuring discretionary spending in Q4, especially health care and consumer-facing sectors (management explicitly cites that this is why guidance was revised down).

AI Builder strategy is being operationalized (opportunity + capacity build-out) - Four-part strategy: (1) reimagine workflows/work done, (2) engineer enterprise-grade AI via platforms, (3) help clients absorb AI via Skillspring, (4) govern/compound institutional intelligence via Cognizant AI Nexus. - Deployment capacity build: 45,000+ associates certified across frontier AI platforms (95,000 certs), plus 65,000+ in progress; expanded Google Cloud partnership with a Gemini Frontier Capability Group (18,000 associates). - Opportunity framing: agentic AI expected to expand addressable spend across AI productivity, modernization economics, and new services/platforms/operating models. - “Good but not easy” reality: they still expect clients to require trustworthy governance/security as AI moves into production.