CTSH Rises 9% in a Month: Is the Stock a Must-Have for Your Portfolio?

Cognizant Technology Solutions CTSH shares have rallied 9% over the past month compared with the broader Zacks Computer & Technology sector’s increase of 8.8%. The outperformance can be attributed to an expanding clientele and a strong partner base. A favorable mix of business renewals and expansions of new opportunities is a major driver for Cognizant in 2025. 

The company’s expanding partner base, which includes Pegasystems PEGA, Docusign DOCU, Omron OMRNY, NVIDIA, ServiceNow, Boehringer Ingelheim, CrowdStrike, Zscaler, IBM, Palo Alto Networks and Amazon, is expected to drive its prospects in 2025. In the first quarter of 2025, the company secured several contracts, including a mega deal valued at more than $500 million, contributing positively to overall growth.

Can Cognizant sustain its growth momentum with the help of its expanding partner base?

CTSH Expands Clientele With PEGA Deal

Cognizant expanded its collaboration with Pegasystems to enhance its agentic AI services using Pega Blueprint. 

Cognizant Technology Solutions Corporation Price and Consensus

Cognizant Technology Solutions Corporation price-consensus-chart | Cognizant Technology Solutions Corporation Quote

The partnership aims to streamline cloud transformations for joint clients by integrating Cognizant’s intellectual property with Pega’s rapid development tools, including the Bluebolt innovation program. Addressing the high costs and inefficiencies of legacy systems, the collaboration uses AI-driven capabilities for legacy code modernization, process optimization, and AI-powered solutions on the Pega Infinity platform.  

Together, Cognizant and Pegasystems are enabling enterprises to move beyond traditional modernization approaches toward transformative, AI-infused business growth and improved customer experiences.

Cognizant’s Rich Partner Base to Drive Prospects

Cognizant’s rich partner base has been a major growth driver for its success. In April 2025, the company partnered with OMRON to integrate Information Technology (IT) and Operational Technology in manufacturing, combining OMRON’s automation products with Cognizant’s IT expertise to enable digital transformation and operational excellence.

Cognizant also expanded its partnership with Docusign to enhance customer support and drive digital transformation by providing comprehensive services, including real-time assistance, training, back-office support, and onboarding consultations for Docusign solutions.

Cognizant Benefits From Expanding Portfolio

Cognizant’s expanding portfolio has been noteworthy. It has advanced its AI capabilities, with innovations like the Neuro AI Multi-Agent accelerator, Neuro Cybersecurity and Neuro Edge for real-time AI. These developments allowed the company to expand its AI offerings. In first-quarter 2025, Cognizant deepened its AI capabilities with more than 1,400 Generative AI engagements across multiple clients.

Further expanding its portfolio, Cognizant announced the open-sourcing of its Neuro AI Multi-Agent Accelerator, allowing researchers and developers to prototype and build customizable multi-agent systems quickly. This move aims to advance AI adoption by fostering collaboration and supporting scalable, secure deployment of agent networks across industries.

CTSH Initiates Strong Q2 Guidance

Cognizant’s strong portfolio, along with an expanding partner base, reflects solid top-line growth potential over the long run. 

Cognizant expects second-quarter 2025 revenues between $5.14 billion and $5.21 billion, indicating growth of 5.9%-7.4% and an increase of 5%-6.5% on a cc basis. 

The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $5.19 billion, indicating year-over-year growth of 6.92%.

The consensus mark for earnings is pegged at $1.25 per share, which has increased by a couple of pennies over the past 30 days. The figure implies a year-over-year increase of 6.84%.

What Should Investors Do With CTSH Stock?

Cognizant’s expanding clientele and robust AI-driven solutions are continuously contributing to its growth prospects and driving top-line growth. 

Cognizant stock currently carries a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. 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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