Cognizant (CTSH Quick QuoteCTSH - Free Report) is strengthening its footprint in the life sciences and healthcare domain, driven by an expanding partner base. It is teaming up with industry giants like NVIDIA (NVDA Quick QuoteNVDA - Free Report) and Microsoft (MSFT Quick QuoteMSFT - Free Report) to harness the power of generative AI (gen AI) technology in transforming the landscape of drug discovery and healthcare administration, respectively.

Cognizant, in partnership with NVIDIA, is poised to redefine the paradigm of drug discovery through the application of gen AI technology. By integrating NVIDIA’s BioNeMo platform into its operations, Cognizant aims to address the intricate challenges of the life sciences industry, particularly in drug development. Traditional methodologies often entail laborious processes, exorbitant costs and prolonged timelines, often resulting in high failure rates.

The incorporation of gen AI technologies promises to streamline these processes significantly. Through rapid analysis of extensive datasets and predictive modeling, researchers can expedite the identification of potential drug compounds and development pathways. This collaboration not only enhances productivity but also accelerates the delivery of life-saving treatments to market, ultimately benefiting patients worldwide.

Meanwhile, Cognizant and Microsoft are joining forces to integrate gen AI into healthcare administration. This strategic partnership aims to optimize productivity and efficiency for healthcare payers and providers while simultaneously enhancing patient care.

The integration of gen AI capabilities into Cognizant's TriZetto platform, powered by Microsoft Azure, holds immense promise for the healthcare industry. By leveraging Azure OpenAI Service and Semantic Kernel, the TriZetto Assistant on Facets facilitates seamless access to gen AI within the user interface. This innovation streamlines processes, enhances data security, and ensures regulatory compliance, ultimately leading to improved patient outcomes.

Cognizant Prospects Driven by Strong Partner Base

Cognizant’s strong partner base, which includes the likes of Microsoft, NVIDIA and ServiceNow (NOW Quick QuoteNOW - Free Report) , has been a key catalyst.

In January, Cognizant and Microsoft jointly introduced the Innovation Assistant, an advanced generative AI-powered tool that forms a cornerstone of Cognizant's internal innovation initiative, Bluebolt.

Moreover, CTSH announced a collaboration with ServiceNow to enhance the Cognizant WorkNEXT modern workplace services solution with gen AI capabilities.

The strong partner base is helping CTSH win new customers as well as retain existing ones.  It recently announced the continuation of its partnership with CNO Financial, a leading provider of insurance, financial services and workforce benefits solutions to middle-income America.

Cognizant will help in optimizing and enhancing CNO Financials’ technology-based services and solutions with cloud and digital technologies.

CTSH’s expanding portfolio is noteworthy. In February, this Zacks Rank #3 (Hold) company announced the launch of its latest Flowsource platform, a cutting-edge gen AI-enabled platform designed to revolutionize the landscape of software engineering for enterprises. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Cognizant currently expects first-quarter 2024 revenues between $4.68 billion and $4.76 billion, indicating a decline of 2.7% to 1.2% (a decline of 3-1.5% on a cc basis). The Zacks Consensus Estimate for revenues is pegged at $4.73 billion, indicating a 1.79% year-over-year decline.

The consensus mark for first-quarter 2024 earnings is pegged at $1.11 per share, unchanged over the past 30 days.