Cognizant Technology Solutions Corp (CTSH) stock surged 5.15% in pre-market trading on Thursday following the company's strong first-quarter 2025 earnings report and a series of positive analyst actions.

The IT services giant reported revenue of $5.1 billion for Q1, representing an 8.2% year-over-year growth in constant currency. This performance was driven by robust growth in the Health Sciences and Financial Services segments, which grew 11% and 6.5% respectively. The company's adjusted operating margin improved by 40 basis points to 15.5%, while adjusted earnings per share (EPS) grew by 10% year-over-year.

Following the earnings release, several analysts raised their price targets for Cognizant. Notably, Susquehanna upgraded the stock to Positive from Neutral, increasing its price target to $90 from $77. Jefferies and JP Morgan also raised their price targets to $90 and $88 respectively. These upgrades reflect growing confidence in Cognizant's ability to navigate the uncertain macroeconomic environment and capitalize on AI-driven opportunities.

Despite some caution regarding a slowdown in client decision-making observed in April, investors appear to be focusing on Cognizant's strong positioning in AI and its robust pipeline of large deals. The company's emphasis on AI-led productivity and cost optimization solutions seems to be resonating with clients in the current market conditions, potentially setting the stage for sustained growth in the coming quarters.