Kroger (KR) shares dropped by 8.43% after it posted first-quarter results.
In the first quarter, revenue increased by 2.2% Y/Y to $46.1 billion. Gross margin fell by 30 bps to 22.7%. Higher fuel sales and transportation costs were offset slightly by a favorable pharmacy mix.
Cognizant Technology (CTSH) lost 15% of its value in the last week. Even though it announced an accelerated $500 million stock buyback on May 21, the share price continued to slip. At that time, CTSH stock traded at around $50, rallied near $60, but closed last week at $43.70.
At a technology conference, the firm cited a deflation on individual contracts for traditional IT services. This year, it expects growth of 3% to 4%, repeating. Its AI opportunity stems from performing old work in new ways.
Despite opportunities from the Mythos AI, investors are not convinced that CTSH stock is attractive. By buying a stock at a forward P/E of 7.7 times, shareholders hold a slow-growing but profitable firm.
IT service firms are out of favor. Shares of Accenture (ACN) lost more than half their value in 2026. Similarly, Infosys (INFY) is down by 41%, CGI (GIB.A) is down by 29%, and Wipro (WIT) lost 16%. AI chatbots offer corporations a cheap way of replacing IT service work. Stock markets are pricing in that eroding moat that consulting firms used to enjoy.
