Cognizant Technology Solutions CTSH shares have gained 6.4% in the year-to-date period compared with the broader Zacks Computer & Technology sector’s return of 33.6%.

The underperformance can be attributed to tight discretionary spending in manufacturing, logistics, and telecom sectors, as well as weak software spending in Europe.

However, CTSH shares have outperformed the Zacks  Business - Software Services industry which have declined of 23% in the year-to-date period.

CTSH is benefitting from an expanding clientele and a strong partner base. A favorable mix of business renewals and expansions of new opportunities are major drivers for Cognizant in 2025.

Cognizant Technology Solutions Corporation Price and Consensus

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

One notable area of strength for CTSH has been its positive momentum in the Financial Services sector, which has rebounded in recent times.

In the third quarter of 2024, Financial Services inched up 0.5% in constant currency and 0.7% on a reported basis, year over year. This growth was driven by improving discretionary spending and strong demand from banking and financial services clients. The trend is expected to continue in the near term.

Cognizant’s Rich Partner Base to Drive Prospects

Cognizant is seeing increased client confidence in digital and cloud transformation investments, leading to expanded opportunities in the financial services sector.

Building on this momentum, CTSH recently collaborated with Beyond Bank Australia, one of the country’s largest customer-owned banks. 

The partnership aims to transform Beyond Bank’s digital banking experience by enhancing operational resilience, streamlining processes, and improving customer satisfaction. 

By implementing innovative technology solutions, Cognizant will help the bank modernize its IT infrastructure, automate key processes, and leverage AI-driven insights to deliver tailored services. 

Cognizant’s expanding partner base, which includes ZScaler ZS, International Business Machines IBM and Palo Alto Networks PANW, is expected to drive its prospects in 2025.

Cognizant recently expanded its partnership with Zscaler to help enterprises transform their security posture with an AI-enabled zero-trust cloud security platform, streamlining policy enforcement, enhancing threat detection, and reducing security complexity at scale.

In the third quarter of 2024, Cognizant collaborated with Palo Alto Networks to deliver AI-driven cybersecurity solutions, enhancing security through platformization and reducing complexity for enterprises.