Under activist spotlight, US IT co Cognizant enters a high-stakes reset

Cognizant is once again under the activist investor spotlight, this time from Mantle Ridge, marking the second activist intervention the company has faced in under a decade. With margins slipping nearly 500 basis points, sluggish revenue growth, and its stock declining despite acquisitions, the company is navigating a high-stakes reset to regain profitability and close the valuation gap with peers.

Our Founder & MD, Mr. Shriram Subramanian, has shared his observations in The Economic Times, highlighting that Mantle Ridge is known for closely collaborating with management teams to drive cost optimisation and accelerate margin improvement. With a strong track record as an efficient activist investor, he notes that if Mantle Ridge’s thesis plays out similarly at Cognizant, “it will pay off.”

Read the full article: https://telecom.economictimes.indiatimes.com/news/enterprise-services/under-activist-spotlight-us-it-co-cognizant-enters-a-high-stakes-reset/125377447