Cognizant Technology Solutions (CTSH) Q2 results are likely to indicate a start of major turnaround in growth and profitability metrics, supported by momentum with artificial intelligence-driven deals, Wedbush said in a Wednesday research report.

Analysts noted that a $5.48 billion consensus Q2 revenue estimate is reachable due to the momentum in the BFSI sector, driving more confidence in the company's ability to capitalize on incremental revenue opportunities over time. The company is due to report Q2 results on July 29.

The company's large pipeline and favorable investment cycles will result in sustained growth over the coming quarters, with its bookings-to-revenue conversion starting to ramp in 2026 as more AI deals close, according to the note.

Cognizant reworked its pricing architecture via an AI consumption model comprising an agentic cost estimator and a redesigned rate card, with pricing expected to shift towards outcome-based contracting for higher visibility into revenue generation, according to Wedbush.

The brokerage maintained its outperform rating on the stock and price target of $70 per share.

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