Cognizant Technology Solutions’ (CTSH Quick QuoteCTSH - Free Report) generative AI technology experienced a recent breakthrough. The company is offering the facility of fundamentally transforming clients' businesses. It has been accelerating its investment in generative AI to enhance its own creativity and productivity.

To deploy generative AI at enterprise scale, Cognizant announced a new AI platform, Cognizant Neuro, designed to provide enterprises with a comprehensive approach to accelerate the adoption of generative AI technology and channel its business value in a flexible, secure, scalable and responsible way.

The Cognizant Neuro AI platform helps identify company specific-use cases and operationalizing AI to data engineering and continuous improvement. It includes a library of reusable and flexible generative AI models and agents, development tooling and control components.

The platform leverages Cognizant's consulting, advisory, ecosystem partnership, digital studios, solutioning, and delivery capabilities, in conjunction with industry expertise, to help clients transition into generative AI.

Cognizant Technology Solutions Corporation Price and Consensus

Cognizant Leveraging on Strong Partnerships

Cognizant rides on a strong partner base with the likes of Amazon (AMZN Quick QuoteAMZN - Free Report) , Microsoft (MSFT Quick QuoteMSFT - Free Report) and Alphabet (GOOGL Quick QuoteGOOGL - Free Report) that enhances Cognizant’s AI and cloud solutions to accelerate digital transformation and expand clientele.
    
Cognizant works with Amazon to build a robust digital platform on AWS Cloud driving transformative cloud innovation. It aims to provide richer customer experiences through three core capabilities — Cloud Consult, Cloud Migrate and Cloud Operate.

Microsoft and Cognizant collaborated to integrate Cognizant's TriZetto healthcare products with Microsoft Cloud for Healthcare, giving healthcare payers and providers easy access to cutting-edge technology solutions and improving interoperability to optimize business operations.

Cognizant and Google Cloud expanded their partnership to accelerate enterprises' application of generative AI with more highly-skilled AI experts, new solutions focused on creating business value and deep experience. It provides a suite of transformative solutions for all industries, leveraging Google Cloud's generative AI, predictive AI and analytics capabilities.

Cognizant’s Prospects not so Bright

Shares of Cognizant have increased 9.8% year to date compared with the Zacks Computer and Technology sector’s increase of 21.8% in the same time frame.

The recent underperformance in Cognizant’s shares reflects slowing growth primarily due to stiff competition, challenging macroeconomic conditions and unfavourable forex.

This Zacks Rank #4 (Sell) company expects second-quarter 2023 revenues between $4.83 billion and $4.88 billion, indicating a year-over-year decline of 1% to flat on a constant-currency basis. Unfavourable forex is expected to hurt the top line by 60 bps while acquisitions are expected to contribute 100 bps. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $4.8 billion, indicating a decline of 2.08% from the year-ago quarter’s reported figure.

The consensus mark for earnings has remained unchanged at $1 per share in the past 30 days, indicating a year-over-year fall of 12.28%.