Cognizant Still a Best Idea in Tech

In terms of Cognizant’s investigation, it has identified approximately $5 million in potential improper payments. Cognizant has concluded that the amount is not material and won’t require a restatement of its historical financial statements. The company also finally linked former President Gordon Coburn's departure with the investigation, as we had suspected, and the firm announced a major overhaul to procurement and accounts payable as it applies to real estate transactions in India. Nevertheless, with the investigation ongoing, the duration, scope, and result remain uncertain. Until the final determination is known, it is possible that the investigation could provide a bit of an overhang, but we think that shares have been unfairly punished.

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