Cognizant CEO Reportedly Touts Transition To ‘AI Builder’ As Stock Rises After Q3 Results

• Cognizant CEO Ravi Kumar described two “swim lanes” for AI growth — in software automation and “agentic AI” for enterprise operations.
• He said AI should enhance rather than replace human labor, calling it an “equalizer.
• Cognizant is also weighing a potential India listing to boost shareholder value.

Cognizant Technology Solutions (CTSH) is turning a corner in its AI-driven transformation, CEO Ravi Kumar said Wednesday, describing how artificial intelligence is reshaping both the company’s business model and its workforce.

Speaking with CNBC, Kumar said Cognizant has moved “to the upper end” of its revenue and margin guidance after a strong year of execution. “We are transitioning from a system integrator to an AI builder company,” he said, noting that investments in AI infrastructure are now flowing toward front-end applications that help enterprises reinvent operations.

Cognizant’s stock rose nearly 7% in afternoon trade, paring gains after hitting an almost three-month intraday high of $75.67, following the announcement of the company’s third quarter (Q3) earnings. 

Two ‘Swim Lanes’ For AI Growth

Kumar described two “swim lanes” of opportunity during the interview. The first centers on AI-assisted software development, where machines now write a measurable share of code. “As you do more for less, you actually get to do more because technology is elastic,” he said, arguing that AI can expand, not shrink, software demand.

The second area focuses on what Kumar called “agentic AI,” applying large-scale enterprise AI systems to reimagine business processes and workflows. “You can create digital labor,” he said, combining human and AI agents to boost productivity across industries.

AI Will Not Displace Human Capital

Despite broader concerns that AI could replace workers, Kumar said Cognizant is using the technology to expand hiring and upskill younger recruits. “If AI technology is used to displace human capital, that’s a mistake,” he said. “AI is an amplifier to human potential.”

The company has doubled its intake of school graduates this year, he added, saying early-career employees are seeing the largest productivity gains from AI tools. “At the bottom of the pyramid, you get great value,” Kumar said. “The bottom 50 percentile actually gets 37% productivity gains, while the top 50 gets 17%. AI is an equalizer.”

Cognizant Q3 Earnings

Cognizant reported earnings of $5.42 billion, beating analysts' estimate of $5.32 billion, according to Koyfin data. The company’s earnings per share (EPS) came in at $1.39, higher than the estimated $1.30.

The company is also looking to go public in India, as per management commentary during the earnings call. “Cognizant's Board and management team regularly assess opportunities to enhance the shareholder value,” said CFO Jatin Dalal. “Towards this end, we have been assessing a potential primary offering and a secondary listing in India with our legal and financial advisors.” 

Cognizant’s stock has fallen more than 6.5% this year and around 3% in the last 12 months.

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