How Investors May Respond To Cognizant Technology Solutions (CTSH) Securing CEPI’s Digital Transformation Partnership

• On November 20, 2025, the Coalition for Epidemic Preparedness Innovations (CEPI) announced the selection of Cognizant Technology Solutions to deliver a multi-year digital transformation program, including implementing a new HR and Expense Management System and consolidating support for CEPI's Salesforce platform.
• This collaboration underscores Cognizant's increasing recognition for expertise in enterprise architecture, platform implementation, and AI-enabled automation in the healthcare and life sciences sectors.
• We'll explore how Cognizant's CEPI partnership and move into AI-enabled operational transformation may impact its investment narrative.

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Cognizant Technology Solutions Investment Narrative Recap

To be confident in Cognizant as a shareholder, you must believe in the company’s ability to scale its digital and AI-enabled transformation services faster than sector-wide automation trends can erode traditional consulting demand. The CEPI partnership and recent automation wins reinforce this narrative, suggesting progress toward high-value, multi-year contracts, though they do not fully resolve key risks such as pricing pressure from heightened competition or margin headwinds caused by wage inflation in major delivery hubs.

The launch of ONE Bridge, announced with Ataccama, stands out in context, it targets faster, less risky data migration and showcases Cognizant’s push into agentic AI. This aligns with accelerating client demand for next-gen automation, supporting recurring, large-deal pipelines that are central to near-term revenue catalysts, but may also bring further margin scrutiny if not managed alongside rising delivery costs.

However, it's important for investors to be aware that, while growth in automation services is promising, the risk of competitive pressure impacting margins remains material if...

Read the full narrative on Cognizant Technology Solutions (it's free!)

Cognizant Technology Solutions is projected to reach $23.5 billion in revenue and $2.9 billion in earnings by 2028. This outlook assumes annual revenue growth of 4.7% and a $0.5 billion increase in earnings from the current $2.4 billion.

Uncover how Cognizant Technology Solutions' forecasts yield a $84.86 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided eight fair value estimates for Cognizant, ranging widely from US$66.06 up to US$126.34 per share. As many participants point to potential margin pressure from rising wage costs, it is clear investor outlooks differ considerably and you may benefit from reviewing several distinct viewpoints before making a judgment.

Explore 8 other fair value estimates on Cognizant Technology Solutions - why the stock might be worth 13% less than the current price!

Build Your Own Cognizant Technology Solutions Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Cognizant Technology Solutions research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Cognizant Technology Solutions research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Cognizant Technology Solutions' overall financial health at a glance.

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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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