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Cognizant (CTSH) Boosts AI-Driven Automation With ServiceNow
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Cognizant Technology Solutions’ (CTSH - Free Report) recently inked a strategic partnership with ServiceNow (NOW - Free Report) to help clients adopt AI-driven automation across industries. The alliance aims to build a $1-billion combined business for both companies.
The partnership leverages on Cognizant's ServiceNow Business Group, which offers AI-led platforms and industry solutions to transform IT, customer, employee and business experiences. The group will help clients improve operational effectiveness, enhance experience and expedite innovation.
To optimize operations, organizations across sectors face challenges around platform silos and intensive manual workflows. To address these challenges, Cognizant integrates its deep industry expertise and enterprise AI solutions with ServiceNow’s powerful platform, delivering innovative and cost-effective solutions that enhance the value of clients' products.
The collaboration offers integrated solutions that use data across the enterprise to drive business differentiation, such as – generative AI and hyperautomation, next-generation service operations, workflow optimization, contact center management, asset management and effective pathways to net zero emissions.
Cognizant Technology Solutions Corporation Price and Consensus
Cognizant rides on a strong partner base with the likes of Alphabet (GOOGL - Free Report) and Amazon (AMZN - Free Report) that enhances Cognizant’s AI and cloud solutions to accelerate digital transformation and expand clientele.
Cognizant partnered with Alphabet’s Google Cloud to accelerate enterprises' application of generative AI and offer new solutions to boost business value and deep experience. It leverages on Google Cloud's generative AI, predictive AI and analytic capabilities to provide a suite of transformative solutions for all industries.
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.
What Awaits Cognizant’s Shares in the Rest of 2023?
The software services industry in the United States is expected to rise moderately in 2023, despite facing challenges from inflation, labor shortages and global uncertainties. Per an article by Gartner, the worldwide software segment is expected to grow by 12.3% to $891 billion in 2023.
The key drivers to this growth are higher demand for digital transformation and innovation across industries and the shift from on-premises software to software-as-a-service (SaaS).
Cognizant’s shares have outperformed the Zacks Business – Software Services industry in the year-to-date period. While CTSH’s shares have gained 10.8%, the industry has increased 6.2%. The shift toward a multi-hybrid cloud and generative AI have been major performance drivers.
Cognizant 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.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $4.81 billion, indicating a decline of 1.87% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 97 cents per share in the past 30 days, indicating a year-over-year fall of 14.91%.
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Cognizant (CTSH) Boosts AI-Driven Automation With ServiceNow
Cognizant Technology Solutions’ (CTSH - Free Report) recently inked a strategic partnership with ServiceNow (NOW - Free Report) to help clients adopt AI-driven automation across industries. The alliance aims to build a $1-billion combined business for both companies.
The partnership leverages on Cognizant's ServiceNow Business Group, which offers AI-led platforms and industry solutions to transform IT, customer, employee and business experiences. The group will help clients improve operational effectiveness, enhance experience and expedite innovation.
To optimize operations, organizations across sectors face challenges around platform silos and intensive manual workflows. To address these challenges, Cognizant integrates its deep industry expertise and enterprise AI solutions with ServiceNow’s powerful platform, delivering innovative and cost-effective solutions that enhance the value of clients' products.
The collaboration offers integrated solutions that use data across the enterprise to drive business differentiation, such as – generative AI and hyperautomation, next-generation service operations, workflow optimization, contact center management, asset management and effective pathways to net zero emissions.
Cognizant Technology Solutions Corporation Price and Consensus
Cognizant Technology Solutions Corporation price-consensus-chart | Cognizant Technology Solutions Corporation Quote
Strong Partnerships Aids Cognizant’s Prospects
Cognizant rides on a strong partner base with the likes of Alphabet (GOOGL - Free Report) and Amazon (AMZN - Free Report) that enhances Cognizant’s AI and cloud solutions to accelerate digital transformation and expand clientele.
Cognizant partnered with Alphabet’s Google Cloud to accelerate enterprises' application of generative AI and offer new solutions to boost business value and deep experience. It leverages on Google Cloud's generative AI, predictive AI and analytic capabilities to provide a suite of transformative solutions for all industries.
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.
What Awaits Cognizant’s Shares in the Rest of 2023?
The software services industry in the United States is expected to rise moderately in 2023, despite facing challenges from inflation, labor shortages and global uncertainties. Per an article by Gartner, the worldwide software segment is expected to grow by 12.3% to $891 billion in 2023.
The key drivers to this growth are higher demand for digital transformation and innovation across industries and the shift from on-premises software to software-as-a-service (SaaS).
Cognizant’s shares have outperformed the Zacks Business – Software Services industry in the year-to-date period. While CTSH’s shares have gained 10.8%, the industry has increased 6.2%. The shift toward a multi-hybrid cloud and generative AI have been major performance drivers.
However, this Zacks Rank #3 (Hold) company underperformed the Computer and Technology sector that increased 35.2% year to date. The downtick was primarily due to stiff competition, challenging macroeconomic conditions and unfavourable forex. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cognizant 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.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $4.81 billion, indicating a decline of 1.87% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 97 cents per share in the past 30 days, indicating a year-over-year fall of 14.91%.