Cognizant Technology Solutions Corp Class A

CTSH: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$71.00	Kwhlsw	Nyqhlsbj

Cognizant Earnings: Beat Indicates Firm Has Nothing to Fear of AI in Short Term; Shares a Buy

Julie Bhusal Sharma

Aug 1, 2024

Narrow-moat Cognizant reported second-quarter results surpassing our expectations all around. We are reiterating our $94 fair value estimate for the firm as our belief that Cognizant will benefit considerably from demand in digital transformation projects and artificial intelligence enablement remains strong. We continue to believe that the market is discounting the company for its past when it was slow to move on to cloud solutions. But, at present, Cognizant appears up to speed on all things latest and greatest in enterprise technology, making this a top pick in technology, in our view.

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