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TEANECK, N.J./RALEIGH, N.C. - Cognizant (NASDAQ:CTSH), a prominent IT services player with $20.49 billion in annual revenue, has formed a strategic partnership with the North Carolina Turnpike Authority (NCTA) to develop a next-generation tolling back-office system, according to a press release statement issued Monday. InvestingPro analysis suggests the company is currently trading below its Fair Value, making it an interesting prospect for value investors.
The multi-stage project aims to create a scalable, API-driven architecture that will integrate with partners including Mastercard and Volvo Car USA. The initiative seeks to eliminate the need for traditional toll transponders by enabling drivers to pay tolls directly through Volvo’s infotainment system.
Cognizant will lead the technology orchestration across all systems in the project, which is already in its first stage of implementation.
"This partnership is a critical milestone in our mission to deliver innovative, customer-centered transportation solutions for North Carolina," said James J. Eden, Executive Director of the N.C. Turnpike Authority.
The collaboration represents a shift from labor-intensive and capital-heavy tolling systems toward more agile, digital-first models. Cognizant will apply its experience in building back-office systems for tolling agencies to support this transformation.
Vishal Attal, Vice President and Head of Transportation and Logistics business at Cognizant, noted that the U.S. tolling market represents a $1.6 billion addressable market.
The NCTA has previously demonstrated innovation in the tolling space. Its Triangle Expressway was the first toll road in the country to utilize all-electronic tolling technology from inception.
In other recent news, Cognizant Technology Solutions reported impressive Q2 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.31, higher than the projected $1.26. Revenue also exceeded forecasts, reaching $5.25 billion compared to the anticipated $5.18 billion. Despite these strong financial results, BMO Capital adjusted its price target for Cognizant from $85.00 to $84.00, maintaining a Market Perform rating. The firm highlighted Cognizant’s solid performance, noting the company’s ability to beat revenue expectations and deliver strong bookings with high single-digit growth in Annual Contract Value (ACV). These developments reflect Cognizant’s ongoing success in meeting and exceeding market projections.
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