Cognizant Technology Solutions (CTSH) has acquired 3Cloud, strengthening its Azure, data, and AI capabilities. 3Cloud adds over 1000 Azure experts and engineers and more than 1500 Microsoft certifications to CTSH’s workforce, expanding its clientele and positioning as a Microsoft partner.

CTSH shares have outperformed industry and sector, rising 19.9% in the last three months. The company’s focus on AI-led productivity drives expansion, with six large deals signed in Q3 2025. AI now contributes 30% of CTSH’s internal code, expected to reach 50% in the future.

Cognizant anticipates Q4 2025 revenues between $5.27 billion and $5.33 billion, with a growth of 3.8-4.8%. For 2025, revenues are forecasted to be $21.05-$21.10 billion, representing a 6.6-6.9% increase. Adjusted earnings for 2025 are projected to range between $5.22 and $5.26 per share.

Cognizant currently holds a Zacks Rank #3. Top stocks in the Computer & Technology sector are Ciena (CIEN) and Digital Turbine (APPS), both with a Zacks Rank #1. Long-term earnings growth rates for CIEN and APPS are at 41.7% and 42.4% respectively.

Cognizant’s acquisition of 3Cloud is expected to accelerate AI transformation for clients, enhancing its capabilities in Azure, data, and AI solutions. This move aligns with CTSH’s strategic focus on AI-led productivity and business transformation solutions.

Read more at Nasdaq: Cognizant’s 3Cloud Buyout to Accelerate AI Transformation for Clients