Cognizant has entered into a definitive agreement to acquire 3Cloud, a Chicago‑based Microsoft Azure services provider that specializes in Azure‑dedicated AI enablement. The deal will add roughly 1,200 employees, more than 1,000 Azure experts, and over 1,500 Microsoft certifications to Cognizant’s workforce, reinforcing the company’s AI‑builder strategy and positioning it as one of the most credentialed partners in the Azure ecosystem.
3Cloud has grown its revenue at an average of 20% per year since 2020, a pace that has driven a more than 12‑fold increase over five years. The company employs 1,200 people, holds 1,000+ Azure experts and 1,500+ Microsoft certifications, and serves enterprise clients across banking, healthcare, technology, and consumer sectors. 3Cloud is an Elite Databricks partner and was founded by former Microsoft executives, underscoring its deep technical expertise and strong ties to Microsoft’s cloud platform.
Cognizant’s Q3 2025 results—revenue of $5.42 billion, up 7.4% year‑over‑year, and adjusted EPS of $1.39—beat analyst expectations and demonstrate the company’s healthy financial position. Microsoft’s Azure services grew 40% year‑on‑year in Q3 2025, and Azure’s global market share is estimated at 20–24%. These dynamics give Cognizant a favorable backdrop for expanding its Azure and AI offerings through the 3Cloud acquisition.
The transaction is expected to close in the first quarter of 2026; the financial terms have not been disclosed. After the deal, Cognizant and 3Cloud will collectively employ more than 21,000 Azure‑certified specialists, a figure that reflects the combined depth of expertise and the scale of the partnership. The addition of 1,200 employees and 1,000+ Azure experts will accelerate Cognizant’s ability to deliver AI‑enabled solutions to its clients.
The acquisition strengthens Cognizant’s competitive position against other IT services firms that are also pursuing Microsoft partnerships. By integrating 3Cloud’s specialized AI capabilities, Cognizant can help clients accelerate their AI journeys, offering end‑to‑end solutions that span data, analytics, and cloud infrastructure. The deal also supports the company’s broader AI‑builder strategy, which aims to deliver high‑margin, high‑growth services in the rapidly expanding AI and cloud markets.
CEO Ravi Kumar S emphasized that the acquisition “marks a pivotal step in empowering our clients for the future of enterprise AI.” Microsoft’s Judson Althoff noted that the deal will create “one of the most capable and credentialed partners in the Azure ecosystem.” Investors have responded positively to the announcement, reflecting confidence in Cognizant’s strategic focus on high‑growth cloud and AI services.
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