Cognizant Technology Solutions (CTSH) Goldman Sachs Communicopia + Technology Conference 2025 summary

Market and client trends

• Shift in banking and financial services from cost optimization to innovation, with 6%-7% year-on-year growth in tech services over recent quarters.

• 30% of code now written by machines, enabling productivity gains and cost savings shared with clients.

• CIOs are maintaining or increasing budgets, redirecting savings from productivity to fund AI and agentic cycles.

• Large deals are increasing, with $2 billion deals last quarter and 55-60 tracked since 2023.

• Agentic development cycles are emerging as a major growth vector, offering a larger runway than traditional software cycles.

Technology and innovation

• Agentic cycles integrate human and agentic capital, expanding opportunities across enterprise functions.

• Agentic development requires iterative design, supervision, and offers a multiplier effect on productivity.

• AI addresses legacy technology debt, unlocking new labor pools and outsourcing cycles.

• BPO services are experiencing the highest growth, driven by agentic solutions in operations.

• New products and services, such as digital nurses, are being developed using agentic capital.

Financial performance and strategy

• Margin expansion and EPS growth of 7%-10% projected for the year, with EPS growth outpacing revenue.

• Productivity gains from AI are shared with clients, while also improving internal margins.

• Large deal momentum is expected to drive ACV growth into 2025 and 2026.

• Savings from AI and automation are used to fund further innovation, not to reduce budgets.

• Vendor consolidation is achieved by leveraging AI and productivity platforms, increasing wallet share.