Cognizant: AI Value Won't Magically Shift to Enterprises, IT Rout Overblown

• Cognizant CEO Ravi Kumar S addressed investor concerns about AI-led disruption after a significant IT stock selloff.
• Kumar stated that the assumption of new AI tools immediately replacing large parts of IT services work in enterprises is misplaced.
• He argued that economic value from AI technologies has not yet meaningfully shifted to enterprises, remaining with infrastructure providers.
• Cognizant emphasized that AI adoption will be gradual, requiring complex integration, process redesign, and managed services.
• The company reported strong Q4 revenue of $5.3 billion, up 4.9% year-on-year, and full-year revenue of $21.1 billion.