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Cognizant to Report Q3 Earnings: What's in Store for the Stock?

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Key Takeaways

  • Cognizant will report third-quarter 2025 results on Oct. 29, with revenues rising up to 6.1%.
  • CTSH expects over 200 basis points of inorganic growth from its Belcan acquisition in Q3 2025.
  • New AI partnerships and six large deals, including two $1B wins, are set to boost Q3 performance.

Cognizant Technology Solutions (CTSH - Free Report) is scheduled to report its third-quarter 2025 results on Oct. 29.

The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at $1.29 per share, unchanged over the past 30 days. This represents a 3.20% increase from the figure reported in the year-ago quarter. 

Cognizant expects third-quarter 2025 revenues between $5.27 billion and $5.35 billion, indicating growth of 4.6%-6.1% and an increase of 3.5%-5% on a cc basis. The company anticipates a little more than 200 basis points of inorganic contribution from the Belcan acquisition in the third quarter of 2025.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $5.33 billion, indicating a year-over-year increase of 5.63%.

Cognizant’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.26%. 

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

Factors to Note

Cognizant’s third-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 second quarter of 2025, CTSH won six large deals, including two mega deals valued at $1 billion each. This is likely to have contributed to the to-be-reported quarter’s performance as well.

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

New partnerships, such as the collaboration with WRITER and the launch of Cognizant Agent Foundry, are expected to have driven enterprise-scale adoption of Agentic AI and further strengthen CTSH’s position in the market in the third quarter of 2025.

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

Despite Cognizant’s expanding clientele, weak demand in the products and resources segment due to tariff policy concerns and spending pressures remains a concern. Macroeconomic uncertainties, muted discretionary spending, and ongoing cost optimization pressures across some sectors have also been a headwind.

Cognizant Benefits From Expanding Clientele

Cognizant’s robust network of partners, which includes Pearson (PSO - Free Report) , Lineage (LINE - Free Report) , SmartestEnergy, Kramp, Pegasystems, Alphabet’s (GOOGL - Free Report) cloud business Google Cloud, Omron, DocuSign, ServiceNow, NVIDIA, Boehringer Ingelheim, CrowdStrike, Zscaler, IBM, Palo Alto Networks, and Amazon, is likely to have driven growth during the third quarter.

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.

In July 2025, Cognizant announced a collaboration with Lineage, the largest global temperature-controlled warehouse REIT. This partnership aims to improve Lineage’s customer service by providing better resources, reliable service models, and next-generation Agentic AI technologies to enhance its customer care operations.

In June 2025, Cognizant, in collaboration with Alphabet’s cloud platform Google Cloud, launched Cognizant Autonomous Customer Engagement, which is an AI-driven contact center solution powered by Alphabet’s Google Cloud to deliver hyper-personalized, omnichannel customer experiences with enhanced efficiency and scalability.

Conclusion

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

Cognizant currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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