Cognizant Technology Solutions (CTSH Quick QuoteCTSH - Free Report) is set to report second-quarter 2021 results on Jul 28.

Second-quarter 2021 revenues are expected to be in the range of $4.342-4.46 billion, indicating growth of 8%-9% on a cc basis. The Zacks Consensus Estimate for revenues is currently pegged at $4.45 billion, indicating an increase of 11.2% from the figure reported in the year-ago quarter.

The consensus mark for second-quarter earnings has remained unchanged at 96 cents per share over the past 30 days, indicating year-over-year growth of 17%.

Notably, the company beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average surprise being 1.5%.

Let’s see how things have shaped up prior to the upcoming announcement.

Factors to Consider

Cognizant’s quarterly results are likely to reflect its domain expertise in areas like automation, digital engineering, cloud and IoT. Moreover, stellar demand for digital transformation across enterprises is anticipated to have fueled growth in the company’s digital bookings.

The company’s expanding partner base, which includes Salesforce (CRM Quick QuoteCRM - Free Report) , Workday (WDAY Quick QuoteWDAY - Free Report) , Oracle (ORCL Quick QuoteORCL - Free Report) , SAP and ServiceNow, is likely to have helped the company provide a complete suite of enterprise application services to its clients, thereby aiding client wins during the June-end quarter.

On Apr 6, Cognizant announced a multi-year partnership to be the Official Digital Transformation Partner of the elite global racing championship SailGP. Cognizant will leverage its digital transformation and software engineering expertise to improve audience insights, enable data visualization and create an immersive fan experience for the 257 million SailGP viewers worldwide.

Steady adoption of digital engineering, cloud infrastructure, IoT, AI and analytics solutions is expected to have driven this Zacks Rank #3 (Hold) company’s product and resource revenues during the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On Apr 1, Cognizant announced the completion of the acquisition of Servian, an Australia-based, privately held enterprise transformation consultancy, specializing in data analytics, artificial intelligence, digital services, experience design and cloud. The acquisition of Servian expands Cognizant's integrated, end-to-end digital transformation capabilities in Australia and New Zealand.

Apart from this, the company pursued several acquisitions, including Magenic Technologies, Linium, Bright Wolf, Tin Roof Software, 10th Magnitude and Zenith Technologies, to strengthen its digital capabilities, which is likely to have been a major positive during the quarter in review.

Additionally, rising demand for digital operations and cloud-based environments is likely to have aided Life Sciences in the to-be-reported quarter. Also, strong demand from biopharma customers, along with contribution from Zenith’s acquisition, is likely to have aided the top line in the healthcare segment.

Besides, the communications, media and technology segment is likely to have benefited from steady demand for digital engineering services. Nonetheless, the segment’s top-line results might underline the negative impact of the exit from certain portions of the content services business, and prevalent pressure in the media and entertainment.

However, weakness across select global banking accounts is expected to have dampened growth in the financial services segment.