Coforge Shares Surge 10% After Landmark $1.56 Billion Deal with Sabre
Shares of Indian IT services firm Coforge (COFO.NS) surged as much as 10% on Wednesday following the announcement of a 13-year partnership with U.S.-based travel technology provider Sabre Corp (SABR.O). The deal, valued at $1.56 billion, is the largest in Coforge’s history and significantly surpasses its fiscal year 2024 revenue of $1.05 billion. Analysts at Jefferies highlighted that this agreement enhances Coforge’s revenue visibility for fiscal 2026 and strengthens its position in the travel sector.
Market analysts, including those at Macquarie and Morgan Stanley, noted that the deal signals Coforge’s ability to secure major contracts, positioning it as a reliable player in the IT services industry. The partnership is expected to generate annual revenue of $140 million to $150 million in its initial years. The stock was up 9.1% as of 10:44 a.m. IST, making it the top gainer on the Nifty IT index (.NIFTYIT), which was trading 2% higher.
Despite Wednesday’s rally, Coforge’s stock has declined 10% year-to-date, compared to a 12% drop in the IT index amid concerns over tariffs under U.S. President Donald Trump’s administration. Nevertheless, with this significant deal win, analysts remain optimistic about the company’s future growth and potential for securing larger contracts in the highly competitive IT sector.
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