Cognizant to Report Q4 Earnings: What's in Store for the Stock?

Cognizant Technology Solutions CTSH is scheduled to report its fourth-quarter 2025 results on Feb. 4, 2026.

The Zacks Consensus Estimate for fourth-quarter 2025 earnings is pegged at $1.32 per share, unchanged over the past 30 days. This indicates a 9.09% increase from the figure reported in the year-ago quarter. 

Cognizant expects fourth-quarter 2025 revenues between $5.27 billion and $5.33 billion, indicating growth of 3.8-4.8% and an increase of 2.5-3.5% on a cc basis. 

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $5.31 billion, indicating a year-over-year increase of 4.42%.

Cognizant Technology Solutions Corporation Price and EPS Surprise

Cognizant Technology Solutions Corporation price-eps-surprise | Cognizant Technology Solutions Corporation Quote

Cognizant’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.78%. 

Let’s see how things have shaped up for the upcoming announcement.

Factors to Note

Cognizant’s fourth-quarter 2025 performance is likely to have benefited from an expanding clientele and a robust pipeline that includes a favorable mix of new opportunities. In the third quarter of 2025, CTSH signed 16 large deals year-to-date, each with a total contract value of $100 million or more. The company also saw growth in mega deals, with two signed in the third quarter of 2025 and one in the second quarter of 2025. These deals are expected to have contributed to revenue growth in the to-be-reported quarter.

The growing demand for GenAI solutions across industries like financial services, healthcare and manufacturing is expected to provide continued growth opportunities in the fourth quarter of 2025, particularly in areas like fraud detection, medical imaging and predictive maintenance.

CTSH’s NextGen initiative is expected to have played a pivotal role in enhancing operational efficiency in the to-be-reported quarter.

However, the company is facing weak demand in the products and resources segment due to tariff policy concerns and spending pressures. Macroeconomic uncertainties, muted discretionary spending and ongoing cost optimization pressures across some sectors remain a concern

Cognizant Benefits From Expanding Clientele

Cognizant’s robust network of partners, which includes Pearson PSO, Rubrik RBRK, Microsoft MSFT, Lineage, SmartestEnergy, Kramp, Pegasystems, Omron, DocuSign, ServiceNow, NVIDIA, Boehringer Ingelheim, CrowdStrike, Zscaler, IBM, Palo Alto Networks and Amazon, is likely to have driven growth during the fourth quarter.

On Dec. 18, 2025, Cognizant announced a multi-year strategic partnership with Microsoft so that global enterprises become AI-powered frontier firms that redefine work, unlock new value and scale innovation responsibly. Under this agreement, Cognizant and Microsoft will jointly build industry-grade AI solutions, co-sell globally and collaborate on large-scale deals across key sectors, including Financial Services, Healthcare and Life Sciences, Retail and Manufacturing.

Cognizant’s partnership with Rubrik has been noteworthy. In October 2025, CTSH announced an expanded partnership with Rubrik to launch a global Business Resilience-as-a-Service (BraaS) offering, which helps enterprises to accelerate recovery from cyber incidents and ransomware attacks through a subscription-based, pay-as-you-go model.

In September 2025, Cognizant and Pearson formed a global strategic partnership to enhance AI-driven learning, support early and mid-career development and build future-ready workforce skills. The collaboration with Pearson will integrate generative and agentic AI, digital credentials and immersive technologies to create innovative, scalable education and workforce solutions for global learners and organizations.

Conclusion

Cognizant’s expanding clientele and robust AI-driven solutions are expected to have contributed to its growth prospects and drive top-line growth in the to-be-reported quarter. 

Cognizant currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
 

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This article originally published on Zacks Investment Research (zacks.com).

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