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To be a shareholder in Cognizant Technology Solutions, you need to believe in the company’s ability to deliver differentiated AI and automation solutions as enterprises accelerate digital transformation and modernization of legacy systems. The launch of ONE Bridge with Ataccama should reinforce Cognizant’s positioning in AI-driven data migration, potentially sharpening its appeal for large-scale enterprise deals, the biggest near-term catalyst, but the short-term impact appears limited given rising competitive intensity in the IT consulting space.
Among recent announcements, Cognizant’s collaboration with Anthropic to embed advanced large language models into its engineering platforms directly complements its push into AI-enabled enterprise solutions, which could further strengthen its competitive edge as demand for generative AI services expands. This alignment between proprietary platform development and partnerships supports Cognizant’s efforts to sustain growth amid digital adoption cycles, but also highlights the ongoing need to maintain relevance as client needs evolve.
By contrast, investors should be aware of emerging risks if hyperscalers and specialized AI vendors intensify competition for...
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Cognizant Technology Solutions is projected to reach $23.5 billion in revenue and $2.9 billion in earnings by 2028. This outlook depends on a 4.7% annual revenue growth rate and a $0.5 billion earnings increase from current earnings of $2.4 billion.
Uncover how Cognizant Technology Solutions' forecasts yield a $84.70 fair value, a 9% upside to its current price.
Eight separate Simply Wall St Community estimates peg Cognizant’s fair value between US$66.06 and US$124.82 per share. While some see deep value, the potential for margin pressure from intense competition could limit upside, so consider multiple viewpoints before forming your own outlook.
Explore 8 other fair value estimates on Cognizant Technology Solutions - why the stock might be worth 15% less than the current price!
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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.
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