We recently published a list of 10 Mid-Cap IT Stocks Outperforming The Market In 2025. In this article, we are going to take a look at where Cognizant Technology Solutions Corporation (NASDAQ:CTSH) stands against other mid-cap IT stocks outperforming the market in 2025.
US Stocks continue their recovery from a post-DeepSeek and post-tariffs period as nerves surrounding Donald Trump’s unpredictable policies calm down. The Nasdaq is surging 1.19% followed by the S&P 500 at 0.64%. The bullishness is expected to continue for the remainder of the day.
To determine which stocks could outperform the market in the coming months, it is essential to look at sectors that are benefitting from ongoing trends. IT stocks are unique in a way that with time, all companies have to spend more to keep their systems updated. Analysts expect companies to add 5% to their IT budgets in 2025. This, together with the increasing demand for AI products, will propel the sector’s returns in 2025.
Some companies have already started the year on a positive note. There are companies that are seeing increasing demand for their innovative products while others continue to serve the infrastructure involved in deploying these innovative solutions. Either way, it is important to look at what’s driving these stocks.
We decided to take a look at the top 10 mid-cap IT stocks that are outperforming the market in 2025. To come up with our list, we only considered stocks with a market cap of at least $10 billion with the highest return since the start of the year.
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Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Cognizant Technology Solutions Corporation is an outsourcing and technology & consulting services provider firm. The company operates through products & resources; financial services; communications, media & technology; and health sciences segments. The stock is up 12% this year supported by the strong financial results of Q4.
The company managed to beat analyst estimates by surpassing the expected EPS by $0.08. The revenue generated also exceeded estimates by $10 million with a 6.7% growth YoY. The revenue surge came as a result of an 11% YoY increase in bookings in Q4. Moreover, the company entered into 10 large deals (worth more than $100 million or more) during the quarter.
Based on Q4 results, guidance for the full year 2025 indicates a growth rate of 2.6 – 5.1%, while operating margins are predicted to improve from 15.5% to 15.7%. On another positive note, the company extended its strategic partnership with McDonald’s (MCD) recently. As per the agreement, the primary focus is to utilize technology to enhance MCD’s operational efficiency and customer satisfaction. CTSH also declared a strategic partnership with CrowdStrike (CRWD) last month to enhance the safety and security of corporate giants across industries.
Overall, CTSH ranks 9th on our list of mid-cap IT stocks outperforming the market in 2025. While we acknowledge the potential of CTSH as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as CTSH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
