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Cognizant (CTSH), McCormik Team Up for Digital Transformation

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Cognizant Technology Solutions (CTSH - Free Report) recently inked a partnership with a global leader in the flavor industry, McCormik & Company (MKC - Free Report) . The partnership aims to transform and manage McCormik’s global technology infrastructure, spanning 150 countries and territories worldwide.

With a focus on delivering predictable business outcomes through AI automated tools, Cognizant aims to enhance user experiences for McCormik’s extensive workforce of approximately 13,000 employees across more than 80 global sites.

Over the next five years, Cognizant is expected to introduce a range of advanced capabilities, including self-service functionalities, improved service productivity and significant cost savings.

The partnership underscores Cognizant’s and McCormik’s commitment to driving digital transformation, leveraging innovation to strengthen brand affinity, and fostering deeper connections with flavor enthusiasts globally.

 

Cognizant’s Prospect Rides On Expanding Clientele

The latest move is in sync with Cognizant’s commitment to providing transformative AI-driven solutions, enhancing user experiences, and accelerating digital transformation for global leaders like McCormik & Company.

Cognizant’s expanding clientele has been noteworthy. In addition to MKC, Cognizant also recently collaborated with LexisNexis, Alphabet , NVIDIA (NVDA - Free Report) and Microsoft (MSFT - Free Report) .

In March, Cognizant announced a multi-year extension of its agreement with LexisNexis Legal & Professional, focusing on enhancing Lexis+ legal research solutions through cloud and digital engineering services.

CTSH’s partnership with Microsoft and NVIDIA further bolstered its presence within the healthcare sector.

Cognizant collaborated with NVIDIA to apply gen-AI technology to transform drug discovery, aiming to accelerate development, reduce costs, and improve patients’ outcomes while expanding into other sectors like manufacturing and automotive industries.

Cognizant partnered with Microsoft to incorporate gen-AI into healthcare administration through TriZetto Assistant on Facets, leveraging Azure Open AI Services and Semantic Kernel to boost productivity, efficiency and patient care while maintaining regulatory compliance and data security.

Cognizant and Alphabet’s cloud business, Google Cloud, recently expanded its partnership to integrate Gemini for Google Cloud, enhancing software delivery lifecycle and developer productivity with AI-powered tools.

However, Cognizant’s shares have declined 5.1% against the Zacks Computer & Technology sector’s rise of 12.2% year to date.

The challenging macroeconomic environment, along with weakness in the Financial Services segment, has been a concern for CTSH’s prospects.

This Zacks Rank #3 (Hold) company expects first-quarter 2024 revenues to be 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, unchanged in the past 30 days.
 

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