Pzena Investment Management, LLC - Focused Value on Cognizant Technology Solutions Corporation

Pzena sees Cognizant as more exposed than Accenture to AI-driven automation because more of its revenue comes from delivery and operations work, but it believes the market is overestimating the disruption. Roughly 60% of revenue comes from healthcare and financial services, where mission-critical claims, payments, and risk systems create high switching costs and where Cognizant is deeply embedded, including through its TriZetto platform. The firm also highlights Cognizant's shift toward fixed-price and outcome-based contracts, now more than half of revenue, which lets it retain part of the productivity benefit from AI rather than passing all efficiency gains to clients. Bookings were still growing as new work offset contract-level price deflation.