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Cognizant (CTSH) Boosts AI-Driven Automation With ServiceNow
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Cognizant Technology Solutions (CTSH - Free Report) is set to acquire Thirdera, which will expand its ServiceNow (NOW - Free Report) platform offerings.
Thirdera's global reach and proficiency in advisory and implementation solutions positions it as a formidable force within the ServiceNow ecosystem. This is a key development in Cognizant's digital strategy.
The anticipated closure of this acquisition in January 2024 marks a significant advancement for the company in delivering innovative solutions in the ever-evolving digital landscape.
Cognizant Technology Solutions Corporation Price and Consensus
Cognizant's growing expertise within the ServiceNow platform underscores its commitment to digital transformation. This involves adapting to evolving technology trends and delivering data-driven, tailored solutions that drive innovation across sectors.
The company’s collaboration with ServiceNow extends beyond the Thirdera acquisition 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.
Cognizant leverages a robust partner base that includes Alphabet (GOOGL - Free Report) and ServiceNow, emphasizing its collaborative strength within the industry.
In partnership with Alphabet’s cloud offering Google Cloud, Cognizant is supporting Bendigo and Adelaide Bank — a major Australian retail bank — in rebuilding its digital banking system as part of the bank's broader transformation program.
Cognizant partnered with Intrum to deliver end-to-end digital integration and core modernization services, aiming to reduce costs, accelerate integration platform modernization and enhance customer services across 20 European countries.
In response to the growing demand for data-driven solutions in education, Cognizant's collaboration with The University of Melbourne, utilizing Tealium CDP, reflects the company's strategic efforts to elevate personalized experiences for students, staff and alumni.
Cognizant collaborated with Alm. Brand Group to automate outsourced business processes, including insurance policies, enhancing efficiency and customer experience, with plans to consolidate operations in its Centre of Excellence in Vilnius, LTU, by 2024.
Q4 View Not So Rosy
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 company is suffering from weakness in the Financial Services segment. It continues to expect the challenging macroeconomic environment to hurt spending rates and affect top-line growth.
The Zacks Consensus Estimate for fourth-quarter revenues 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 and indicating year-over-year growth of 2.97%.
Zacks Rank & Stocks to Consider
Currently, CTSH has Zacks Rank #3 (Hold).
The stock has returned 27.9% compared with the Zacks Computer & Technology sector’s rally of 47.8% year to date.
Image: Bigstock
Cognizant (CTSH) Boosts AI-Driven Automation With ServiceNow
Cognizant Technology Solutions (CTSH - Free Report) is set to acquire Thirdera, which will expand its ServiceNow (NOW - Free Report) platform offerings.
Thirdera's global reach and proficiency in advisory and implementation solutions positions it as a formidable force within the ServiceNow ecosystem. This is a key development in Cognizant's digital strategy.
The anticipated closure of this acquisition in January 2024 marks a significant advancement for the company in delivering innovative solutions in the ever-evolving digital landscape.
Cognizant Technology Solutions Corporation Price and Consensus
Cognizant Technology Solutions Corporation price-consensus-chart | Cognizant Technology Solutions Corporation Quote
Strong Portfolio Aids Cognizant’s Prospects
Cognizant's growing expertise within the ServiceNow platform underscores its commitment to digital transformation. This involves adapting to evolving technology trends and delivering data-driven, tailored solutions that drive innovation across sectors.
The company’s collaboration with ServiceNow extends beyond the Thirdera acquisition 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.
Cognizant leverages a robust partner base that includes Alphabet (GOOGL - Free Report) and ServiceNow, emphasizing its collaborative strength within the industry.
In partnership with Alphabet’s cloud offering Google Cloud, Cognizant is supporting Bendigo and Adelaide Bank — a major Australian retail bank — in rebuilding its digital banking system as part of the bank's broader transformation program.
Cognizant partnered with Intrum to deliver end-to-end digital integration and core modernization services, aiming to reduce costs, accelerate integration platform modernization and enhance customer services across 20 European countries.
In response to the growing demand for data-driven solutions in education, Cognizant's collaboration with The University of Melbourne, utilizing Tealium CDP, reflects the company's strategic efforts to elevate personalized experiences for students, staff and alumni.
Cognizant collaborated with Alm. Brand Group to automate outsourced business processes, including insurance policies, enhancing efficiency and customer experience, with plans to consolidate operations in its Centre of Excellence in Vilnius, LTU, by 2024.
Q4 View Not So Rosy
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 company is suffering from weakness in the Financial Services segment. It continues to expect the challenging macroeconomic environment to hurt spending rates and affect top-line growth.
The Zacks Consensus Estimate for fourth-quarter revenues 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 and indicating year-over-year growth of 2.97%.
Zacks Rank & Stocks to Consider
Currently, CTSH has Zacks Rank #3 (Hold).
The stock has returned 27.9% compared with the Zacks Computer & Technology sector’s rally of 47.8% year to date.
A better-ranked stock in the broader technology sector is Flex (FLEX - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flex’s shares have returned 22.5% on a year-to-date basis.
Long-term earnings growth rates for FLEX are pegged at 12.39%.