Cognizant to exit NASDAQ-100 after 20 years
What's the story
Cognizant, a leading IT services provider, is set to be removed from the NASDAQ-100 Index. The decision was announced on June 11 and will take effect before the market opens on June 22. This is the first time in over two decades that Cognizant has been dropped from this benchmark technology-heavy index. The move comes as part of a quarterly rebalance by NASDAQ to make room for new companies benefiting from the artificial intelligence (AI) boom.
Index significance
NASDAQ-100 Index and its significance
The NASDAQ-100 Index is a key barometer of the performance of 100 of the largest non-financial companies listed on the NASDAQ stock exchange. It is tracked by over 200 investment products worldwide, with more than $800 billion in assets under management. The index's latest rebalancing will see Cognizant exit alongside Charter Communications, Insmed, Verisk Analytics, and Zscaler.
Market trends
Impact of AI boom on index rebalancing
The rebalancing comes as investors continue to pour money into companies associated with AI infrastructure, advanced semiconductor technologies, and semiconductor firms. This has driven up their market capitalizations and helped them qualify for inclusion in the benchmark index. However, Cognizant's exit comes at a time when the IT services industry is facing slower discretionary spending and client caution amid the generative AI adoption race.
Listing prospects
Cognizant's plans for India listing
In October 2025, Cognizant had announced its plans to explore a primary offering and a secondary listing in India. The proposed secondary listing would allow NASDAQ-listed Cognizant to trade its shares on Indian stock exchanges, increasing visibility among Indian investors and potentially improving market liquidity. However, no decision has been made yet, and any offering or secondary listing would be subject to market conditions.