Microsoft and Cognizant team up to accelerate enterprise AI adoption
Microsoft and Cognizant have unveiled a multi-year strategic partnership to build AI-driven solutions for global enterprises. The collaboration will focus on embedding advanced AI tools into critical business workflows to boost productivity and customer engagement.
The deal arrives as Microsoft’s AI and cloud divisions report strong growth, with Azure revenue rising sharply in recent quarters.
The partnership expands Microsoft’s push to scale AI adoption across industries. Cognizant will roll out Microsoft 365 Copilot and GitHub Copilot to its delivery teams while training staff on Azure technologies. This aligns with Microsoft’s plan to increase AI capacity by 80% through fiscal year 2026.
Both companies aim to integrate agentic AI into core operations, helping enterprises streamline decision-making and improve efficiency. Microsoft’s cloud dominance—holding a 20-26% market share—supports this push, with Intelligent Cloud revenue hitting $30.9 billion in Q1 FY26, up 40% year-over-year.
Cognizant, valued at $40.27 billion, reported solid Q3 2025 results, with organic revenue growth accelerating to around 4.0%. The firm joins other major consultancies like EY, Accenture, and IBM in developing sector-specific AI tools for finance, healthcare, retail, and manufacturing. These solutions target areas such as risk management, drug discovery, supply chain optimisation, and predictive maintenance.
Microsoft’s financial strength underpins the expansion, with a free cash flow margin of 26.6% and an operating margin of 46.3% over the past year. The company’s stock has also surged over 30%, fuelled by demand for its AI and cloud offerings. Copilot adoption now sits at 82% among enterprises, contributing an estimated $10 billion in annual revenue.
The partnership will see Cognizant and Microsoft co-develop AI solutions tailored to industries like finance, healthcare, and manufacturing. With Microsoft’s cloud infrastructure and Cognizant’s consulting expertise, the initiative targets faster AI integration into business processes.
The deal reflects broader industry trends, as firms race to adopt generative AI and automation tools to stay competitive. Both companies expect the collaboration to drive further revenue growth and operational improvements for their enterprise clients.
