Back to top

Image: Shutterstock

Cognizant (CTSH) Boosts Developer Productivity with Google Cloud

Read MoreHide Full Article

Cognizant Technology Solutions (CTSH - Free Report) is strengthening its footprint in the software development and AI domains through an expanded partnership with Alphabet’s (GOOGL - Free Report) cloud business, Google Cloud.

Cognizant, in partnership with Google Cloud, is poised to transform the software delivery lifecycle and bolster developer productivity by integrating Gemini for Google Cloud into its operations and platforms.

Through this initiative, Cognizant seeks to equip its developers with AI-powered tools, enhancing their ability to write, test and deploy code efficiently. The partnership also marks a move toward upskilling its workforce, with plans to train more than 70,000 associates on Google Cloud's AI offerings within the following year.

With the establishment of Gemini Studios and Centers of Excellence in various locations, Cognizant is poised to deliver advanced AI solutions to its enterprise clients, further solidifying its position as a leader in the technology consulting industry.

 

Cognizant Prospects Driven by Strong Partner Base

Cognizant’s strong partner base, which includes the likes of Alphabet, Cermaq, NVIDIA (NVDA - Free Report) and Microsoft (MSFT - Free Report) , has been a key catalyst.

In a renewed collaboration with Cermaq Group AS, Cognizant plans to modernize and enhance its technology infrastructure, aiming to drive cost efficiencies, expedite product launches, and facilitate global digital transformation.

Cognizant will also provide advisory support to Cermaq's cloud governance group, aiding in the establishment of a centralized governance framework for IT, enabling entities in Norway and Canada to operate independently while maintaining alignment within established security and compliance guidelines.

Building on its expanding partner network, particularly in the life sciences and healthcare sector, Cognizant and NVIDIA are advancing generative AI technology to transform drug discovery and enhance productivity in the life sciences industry while also collaborating to extend AI applications to manufacturing and automotive engineering, aiming to establish an NVIDIA AI Center of Excellence for global innovation.

Cognizant and Microsoft collaborate to integrate generative AI into healthcare administration, enhancing productivity and efficiency for payers and providers, ensuring timely responses and improved patient care through the TriZetto Assistant on Facets, a crucial component of Cognizant's TriZetto software platform powered by Microsoft Azure and Semantic, Kernel.

However, in the Financial Services segment, Cognizant continues to expect the challenging macro environment to hurt spending rates, thereby impacting top-line growth.

Cognizant’s shares have declined 0.5% against the Zacks Computer & Technology sector’s rise of 10.3% year to date.

This Zacks Rank #3 (Hold) company expects first-quarter 2024 revenues between $4.68 billion and $4.76 billion, indicating a decline of 2.7% to 1.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for the first quarter is pegged at $4.73 billion, indicating a year-over-year decline of 1.79%.

The consensus mark for earnings is pegged at $1.11 per share, moving up by a couple of pennies in the past 30 days.

Published in