$CTSH

The U.S. Department of Labor (DOL) suspended PERM applications for Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. The action follows investigations into alleged fraud and worker exploitation. No fixed dates or legal basis were announced, but the suspension may last up to 180 days. Employers are advised to review compliance and prepare for audits.

The US Department of Labor halted PERM labor certification processing for eight tech firms, including Microsoft, Adobe, and Indian IT giants like Infosys and Wipro, citing potential fraud. This suspension may delay green card applications for workers, primarily affecting Indian nationals, who comprise 71% of successful H-1B applicants. While the financial impact on companies may be limited, the policy could disrupt workers' plans and long-term US-India economic ties.

Deutsche Bank raised its price target for Cognizant Technology Solutions to $75 from $70. The company's stock is currently trading at $65.65, with a 5-day change of -0.18% and a year-to-date change of +12.18%.

On October 8, 2026, the US Department of Labor froze PERM labor certification applications from eight tech firms, including Microsoft, Infosys, and TCS, citing potential fraud. Indians, who make up 71% of H-1B approvals and 68% of the 1.8-million-person employment-based backlog, are most affected. The freeze may delay green-card processing but has limited revenue impact on Indian IT firms, as most work is done offshore.

Cognizant Technology Solutions (CTSH) stock rose 3.79% on October 13, 2026, driven by AI-related deals and analyst upgrades. The company secured a 5-year extension with Gilead Sciences and a major AI-led cloud platform deal with SITA. CTSH reported $21.1B in annual revenue, 33% gross margins, and a 2.2% dividend yield. However, a U.S. Labor Department visa suspension poses regulatory risks.

Cognizant (CTSH) rose 3.9% due to improved IT services demand, raised 2026 EPS guidance ($5.70-$5.82), and a new $2.4B credit facility. Investors anticipate earnings on October 29, 2026. Insider sales and mixed hedge fund activity were noted.

Infosys Foundation's Springboard program has facilitated over 2.5 lakh job offers in India, half of its 2030 goal. The initiative focuses on inclusive employment, with significant participation from women and graduates. The US has suspended Infosys, Microsoft, Adobe, and others from the PERM program, alleging misuse of employment visas to displace American workers. The suspension bars these companies from sponsoring foreign workers for permanent residency.

The US government suspended eight tech companies, including Tata Consultancy Services, Infosys, Wipro, HCLTech, Cognizant, Microsoft, Adobe, and Capgemini, from the PERM Green Card program. The move aims to address alleged misuse of foreign-worker programs. Existing H-1B visas remain valid, but the suspension may delay permanent residency for affected employees. Companies report limited PERM applications, suggesting a potential minimal impact on their operations.

Cognizant adapts to infrastructure market changes, focusing on seamless operations and AI-driven outcomes. Accenture and Dell Technologies launch a joint business group for AI in data centers, targeting regulated industries. Universal Quantum raises $100M for quantum computing development, with plans to expand globally.

The U.S. Department of Labor suspended Microsoft, Adobe, and six IT firms from the PERM green card program, citing federal investigations. The suspension is indefinite, halting new and pending applications. Affected companies include Microsoft, Adobe, Cognizant, Infosys, Tata Consultancy Services, Wipro, HCL Technologies, and Capgemini. The action does not impact existing H-1B visas or issued green cards.