On the day software companies saw a $250 billion-plus Bloodbath, Cognizant posts strong results; says: As we enter 2026, our ...

Cognizant has forecast annual revenue above Wall Street estimates, betting on strong demand for its IT services as businesses adopt artificial intelligence (AI) into their workflows. The US-based company's results come on a day, software companies' stocks worldwide are reeling under Bloodbath. Most IT services and software companies are down up to 10%, driven by fears of disruption caused by AI, with some analysts warning of more volatility as investors assess whether the challenge is existential for the sector. The selloff has been triggered by a new legal tool from Anthropic, which showed the AI industry's growing push into industries that can unlock lucrative enterprise revenue needed to fund massive investments in the technology. Cognizant follows a January-December financial year. During the quarter, Cognizant reportedly benefited from enterprise clients prioritizing AI integration and automation as they migrate to the cloud. Cognizant reported a fourth-quarter revenue of $5.33 billion, above estimates of $5.31 billion. Adjusted profit came in at $1.35 per share, beating estimates of $1.32. Revenue from Cognizant's financial services segment — serving banking, capital markets, payments and insurance companies — grew the most, rising 10.5% to $1.59 billion. Analysts had expected $1.52 billion.The quarter was also marked by the signing of a massive USD 1 billion "mega deal," one of five such deals secured during the year.Cognizant said that it expects full-year 2026 revenue between $22.14 billion and $22.66 billion, compared with analysts' average estimate of $22.06 billion, according to data compiled by LSEG. The company also forecast annual adjusted profit per share between $5.56 and $5.70, the mid-point of which is largely in line with estimates of $5.62."As we enter 2026, our strategy is focused on solving the AI velocity gap, the gap between massive AI infrastructure spending in the past few years and business value realization for our clients," CEO Ravi Kumar said. "I am deeply grateful to our over 350,000 employees who helped make 2025 a defining year for Cognizant in which we put our AI builder strategy in motion and returned to the 'winner's circle' two years ahead of the target we set at our Investor Day. We have invested in our talent, strengthened our partnership ecosystem and advanced our AI platforms to help clients scale AI across the enterprise," Cognizant CEO Ravi Kumar S said.These investments, he noted, helped Cognizant sign 28 large deals in 2025, with TCV growth of nearly 50 per cent year-on-year."We are confident that the foundation we built over the last three years positions us well to carry this momentum in the years ahead," Kumar asserted.Chief Financial Officer Jatin Dalal said the company is still evaluating a primary offering and secondary listing in India, for which it is in conversation with Indian regulators and financial and legal advisers.Cognizant's total employee count as of December 31, 2025, was 351,600, an increase of 1,800 from September 30, 2025 and 14,800 from December 31, 2024.