Cognizant (CTSH) Boosts Innovation With Microsoft AI Assistant
Cognizant Technology Solutions CTSH is benefiting from an expanding partner base with its recent collaboration with Microsoft MSFT.
Leveraging Microsoft Azure OpenAI Service, the companies have jointly introduced the Innovation Assistant, an advanced generative AI-powered tool that forms a cornerstone of Cognizant's internal innovation initiative, Bluebolt.
The Innovation Assistant, an integral part of the Bluebolt grassroots innovation movement, empowers Cognizant employees at all levels to contribute to the innovation process, enhancing creativity and problem-solving capabilities across diverse industries.
With a focus on responsible and ethical AI practices, Cognizant ensures the tool maintains the highest standards of safety, security, privacy, transparency and inclusion, reinforcing its dedication to providing innovative solutions and safeguarding sensitive information and client confidentiality.
Cognizant Technology Solutions Corporation Price and Consensus
Cognizant Technology Solutions Corporation price-consensus-chart | Cognizant Technology Solutions Corporation Quote
Strong Partner Base Aids Cognizant’s Prospects
Cognizant’s shares have returned 13.9% compared with the Zacks Computer & Technology sector’s rise of 7.5% in the past six months. The uptick can be attributed to an expanding clientele underscoring Cognizant's focus on advancing innovation, human-machine collaboration and responsible AI practices.
This Zacks Rank #3 (Hold) company’s commitment to innovation, as highlighted by the Innovation Assistant, positions it for sustained success in the rapidly-evolving tech landscape. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cognizant’s strong partner base, which includes Fortrea FTRE and ServiceNow NOW, has been a key catalyst.
Cognizant has been recently selected as Fortrea's technology transformation provider, aiming to enhance digital infrastructure and accelerate innovation in clinical development for the pharmaceutical, biotechnology and medical device sectors.
In the third quarter of 2023, Cognizant deepened its relationship with ServiceNow through the launch of Telco Assurance 360 — a cloud-based, AI-powered solution designed to revolutionize service management strategies for telecommunications companies in the AI era.
In December 2023, Cognizant also finalized the acquisition of Thirdera, enhancing its ServiceNow Business Group and solidifying its partnership to achieve a $1 billion AI-driven automation business.
Another testament to its collaborative approach is that Cognizant has recently secured a multi-year contract with Cambridge University Press & Assessment, aimed at elevating operational efficiency and ensuring exam integrity while driving global digital transformation and leveraging AI technology for enhanced learning outcomes.
Cognizant’s Q4 View Not So Rosy
Cognizant’s strong portfolio and partner base are contributing to its growth prospects continuously and driving top-line growth.
However, Cognizant is suffering from weakness in the Financial Services segment. It continues to expect the challenging macro environment to hurt spending rates and affect top-line growth.
Cognizant expects fourth-quarter 2023 revenues between $4.69 billion and $4.82 billion, indicating a decline of 3.1% to an increase of 0.3%.
The Zacks Consensus Estimate for the fourth quarter is pegged at $4.76 billion, indicating a year-over-year decline of 1.6%.
The consensus mark for earnings is pegged at $1.04 per share, unchanged in the past 30 days.
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