Cognizant enters five-year IT services agreement with ERIKS

Rhea-AI Summary

Cognizant (Nasdaq: CTSH) on Dec 16, 2025 announced a five-year IT services agreement with ERIKS to manage all operational IT services and support a technology-stack transformation.

The partnership aims to boost operational efficiency, enhance digital capabilities, and help ERIKS scale across Europe using technologies including GenAI. Cognizant and ERIKS have worked together since 2017; the new multi-year deal formalises a strategic extension of that relationship to accelerate ERIKS' IT objectives and provide ongoing technical expertise.

Key Figures

Agreement term five-year IT services agreement with ERIKS

Publication date Dec. 16, 2025 Announcement of ERIKS partnership

Relationship since 2017 Cognizant–ERIKS collaboration start

Current price $84.05 Pre-news trading level for CTSH

52-week high $90.82 Upper end of CTSH 1-year range

52-week low $65.15 Lower end of CTSH 1-year range

Market cap $40,513,344,944 CTSH equity value before ERIKS news

Volume today 5,416,688 shares Trading volume prior to news impact

Market Reality Check

$84.05 Last Close

Volume Volume 5,416,688 is 1.23x the 20-day average of 4,394,341 shares. normal

Technical Price $84.05 is trading above the 200-day MA at $74.58, indicating a prior uptrend.

Peers on Argus

CTSH is up 0.13% while key peers like FIS (-0.95%), WIT (-0.35%), BR (-0.40%), LDOS (-1.28%) and CDW (-1.07%) are down, suggesting stock-specific drivers.

Common Catalyst One peer, Broadridge (BR), also reported a platform-focused product news item, but only a single peer headline is present today.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 11	AI lab expansion	Positive	+0.7%	Opened India AI Lab and Moment Studio under $1B generative AI program.
Dec 10	IT partnership	Positive	+2.8%	Five-year strategic IT partnership with BayWa to modernize core IT.
Dec 04	Skilling initiative	Positive	+1.2%	Expanded Synapse commitment to upskill two million individuals by 2030.
Dec 03	AI partnership	Positive	+2.0%	Strategic partnership with Merchants Fleet to modernize fleet management.
Nov 20	Digital transformation	Positive	+0.1%	Chosen by CEPI for multi-year enterprise architecture and ERP overhaul.

Pattern Detected

Recent AI and partnership announcements for CTSH have generally seen modestly positive next-day price reactions.

Recent Company History

Over the past month, Cognizant has reported several strategic initiatives and partnerships. On Nov 20, 2025, it was selected by CEPI for a multi-year digital transformation, followed by partnerships with Merchants Fleet on Dec 3 and BayWa on Dec 10. It also expanded its Synapse skilling program on Dec 4 and opened an AI Lab in Bengaluru on Dec 11. Each event showed a positive 24-hour price reaction, giving context for the new five-year ERIKS agreement.

Market Pulse Summary

This announcement adds a new five-year IT services agreement with ERIKS to Cognizant’s recent string of multi-year partnerships and AI initiatives. Coming shortly after other collaborations and an AI lab launch that previously saw modest positive price reactions, it reinforces a strategy of securing long-duration digital transformation work. Investors may watch how this deal contributes to future backlog and revenue trends versus levels reported in recent filings, as well as its role in expanding European operations.

Key Terms

GenAI technical

"scale efficiently with emerging technologies such as GenAI, by drawing"

Generative AI (genai) is a type of artificial intelligence designed to create new content, such as text, images, or music, that resembles human-produced work. It matters to investors because it has the potential to transform industries by automating tasks, enhancing creativity, and enabling new products and services, which can influence company performance and market opportunities.

AI-generated analysis. Not financial advice.

Strategic partnership will support ERIKS in modernizing its technology stack, supporting the company to concentrate on innovation and drive future growth

AMSTERDAM, Dec. 16, 2025 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), one of the world's largest professional services companies, has entered into a five-year agreement with ERIKS, a leading provider of industrial components. Under the terms of the agreement, Cognizant will manage all of ERIKS' operational IT services, while also supporting them in transforming and modernising their technology stack. This aims to enable ERIKS to concentrate on achieving its most strategic IT objectives.

The multi-year partnership is expected to drive operational efficiency, enhance digital capabilities and support ERIKS' ambitions to innovate and expand its business across Europe and beyond.

"Partnering with Cognizant assists ERIKS to concentrate on our strategic IT roles and develop key capabilities by providing us with expedited access to advanced technical expertise," said Iman Koster, IT Director at ERIKS. "This collaboration supports our ability to scale efficiently with emerging technologies such as GenAI, by drawing on Cognizant's strengths. In a constantly changing business environment, having Cognizant serve as an adaptable extension of our IT department supports our effectiveness in responding to evolving business needs."

"ERIKS and Cognizant have built a strong and collaborative relationship since 2017," said Saket Gulati, Senior Vice President and Head of Northern Europe at Cognizant. "This new agreement elevates our partnership to a truly strategic level. Being selected as a trusted partner for the next five years is a testament to the confidence ERIKS places in our capabilities, and it recognises the excellent work and close cooperation our teams have delivered over the past years."

About Cognizant

Cognizant (Nasdaq: CTSH) engineers modern businesses. We help our clients modernize technology, reimagine processes and transform experiences so they can stay ahead in our fast-changing world. Together, we're improving everyday life. See how at www.cognizant.com or @cognizant.

For more information contact: GlobalPR@cognizant.com

About ERIKS 

ERIKS is an industrial component expert. They design, engineer, and supply components that enhance efficiency, reliability and sustainability across a wide range of industries, from seals, gaskets, hoses and valves to advanced solutions for rotation and flow control. See how on: https://www.eriks.com

 

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SOURCE Cognizant Technology Solutions

FAQ

What did Cognizant (CTSH) announce about ERIKS on December 16, 2025?

Cognizant announced a five-year agreement to manage ERIKS' operational IT services and modernise its technology stack.

How will the CTSH–ERIKS contract affect ERIKS' technology plans?

The agreement is intended to accelerate ERIKS' technology transformation, improve operational efficiency, and support scaling with GenAI and other tools.

Does the CTSH press release state the financial value of the ERIKS contract?

No — the announcement describes a multi-year strategic agreement but does not disclose contract value or financial terms.

How long has Cognizant worked with ERIKS before this new 2025 agreement?

The companies have collaborated since 2017, and the new deal elevates that relationship to a five-year strategic partnership.

What geographic scope does the CTSH–ERIKS agreement target?

The partnership is described as supporting ERIKS' ambitions to innovate and expand across Europe and beyond.