Cognizant Technology Solutions Corporation (CTSH) Rebounded from Challenges

Pzena Investment Management recently released its fourth-quarter 2025 commentary for “Pzena Focused Value Strategy.” A copy of the letter can be downloaded here. The fourth quarter was defined by strong AI momentum and continued market dominance by mega-cap stocks. In this environment, Pzena Focused Value Strategy underperformed the Russell 1000® Value Index, delivering a net return of 2.5% vs. 3.8% for the Index. Given the limited leadership in the market, the firm still observes appealing valuation differences and believes the current environment is favorable for long-term value investors. In addition, you can check the Fund’s top five holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Pzena Focused Value Strategy highlighted Cognizant Technology Solutions Corporation (NASDAQ:CTSH) as one of its leading contributors. Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a multinational professional services company headquartered in Teaneck, New Jersey. On February 2, 2026, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) stock closed at $82.91 per share. Cognizant Technology Solutions Corporation (NASDAQ:CTSH) delivered a -2.02% return in the past month, and its shares are down 0.75% over the past twelve months. Cognizant Technology Solutions Corporation (NASDAQ:CTSH) has a market capitalization of about $40.02 billion.

Pzena Focused Value Strategy stated the following regarding Cognizant Technology Solutions Corporation (NASDAQ:CTSH) in its fourth quarter 2025 investor letter:

“IT services company Cognizant Technology Solutions Corporation (NASDAQ:CTSH) also contributed following an earnings beat, as organic sales continued to come in at the top of the peer group after several years of company-specific execution challenges.”

Jim Cramer Says Cognizant (CTSH) Is a Smart and Essential Tech Player!

Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 41 hedge fund portfolios held Cognizant Technology Solutions Corporation (NASDAQ:CTSH) at the end of the third quarter, compared to 47 in the previous quarter. While we acknowledge the risk and potential of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Cognizant Technology Solutions Corporation (NASDAQ:CTSH) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Cognizant Technology Solutions Corporation (NASDAQ:CTSH) and shared a list of best affordable AI stocks to invest. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.