.png){kind=logo}
Cognizant Technology Solutions will leave the NASDAQ-100 Index before the market opens on June 22. The removal ends the IT services company’s place in the benchmark after more than two decades.
NASDAQ announced the quarterly index changes on June 11. Astera Labs, CoreWeave, Nebius Group, Rocket Lab and Teradyne will enter the index. They will replace Cognizant, Charter Communications, Insmed, Verisk Analytics and Zscaler.
The changes reflect shifts in company market values across the NASDAQ exchange. Several incoming companies operate in artificial intelligence infrastructure, semiconductor technology, cloud computing and advanced engineering.
Cognizant’s removal follows a sharp decline in its share price over the past six months. The stock closed at $52.17 on June 12, leaving it down about 37.85% over that period. Its market value stood near $24.5 billion during trading on Friday.
NASDAQ-100 membership depends largely on market capitalization and other index rules. Therefore, removal does not directly measure a company’s revenue growth, profit or operating position. Cognizant’s valuation has fallen behind companies that attracted more investment during the expansion of AI infrastructure.
The company has reported stronger operating results under Chief Executive Ravi Kumar. Revenue reached $5.4 billion in the March quarter, rising 5.8% from a year earlier. Revenue increased 3.9% when adjusted for currency movements.
Cognizant also raised its full-year outlook. It now expects 2026 revenue of between $22 billion and $22.6 billion. That range represents annual growth of 4.8% to 7.3%. The company also increased its operating margin forecast to between 16% and 16.2%.
CoreWeave and Astera Labs are among the companies joining the NASDAQ-100 as investment moves toward AI computing. CoreWeave provides cloud infrastructure designed for advanced computing workloads. Astera Labs develops semiconductor-based connectivity products used in data centers.
Nebius Group, Rocket Lab and Teradyne will also enter the benchmark. Nebius operates AI-focused cloud infrastructure, while Rocket Lab provides launch and space technology services. Teradyne supplies automated testing equipment used by semiconductor and electronics companies.
The incoming group shows how rising market values among AI, chip and infrastructure businesses are changing the index. Investors have directed more capital toward companies linked to data centers, processors and computing capacity.
Meanwhile, traditional software, consulting and IT services companies face closer scrutiny over how AI may change customer spending. Some analysts have raised questions about future demand for established service providers. Still, Cognizant has expanded its AI services and reported growth in its AI-related sales pipeline.
The NASDAQ-100 tracks 100 of the largest non-financial companies listed on the NASDAQ exchange. More than 200 investment products follow the benchmark, with over $800 billion in assets under management worldwide.
Funds that track the index must adjust their portfolios when NASDAQ changes its membership. As a result, passive funds and exchange-traded funds may sell shares of removed companies and buy shares of the new members before the changes take effect.
Cognizant has also increased its share repurchase plans. In May, its board doubled the company’s 2026 buyback target from $1 billion to $2 billion. The extra $1 billion in planned purchases is expected during the September quarter.
Additionally, the board approved a further $2 billion increase in its existing repurchase authorization. This decision raised the remaining buyback capacity to about $3.4 billion.
NASDAQ has introduced a ‘fast entry’ rule that took effect in May 2026. The mechanism allows large newly listed companies to enter the NASDAQ-100 sooner. The updated rule may lead to further changes in future index reviews.
Also Read: OpenAI Growth Concerns Trigger Sell-Off in Oracle and CoreWeave Stocks
