Cognizant Earnings: Financial Services and North America Drive Resilient Performance

Cognizant Technology Solutions posted resilient second-quarter results driven by strong performances in North America and financial services, with constant currency revenue growth topping that of Indian IT consultants. The company's financial services segment saw double-digit growth, bolstered by AI adoption and expanding partnerships with key AI vendors. Despite trimming its full-year revenue outlook due to macro uncertainty, Morningstar maintains its $84 fair value estimate, viewing Cognizant shares as deeply undervalued given its market share growth potential from increasing AI deployment.