Cognizant Technology Solutions - CTSH STOCK NEWS

Cognizant (CTSH) reported Q4 2022 revenue of $4.8 billion, a 1.3% increase year-over-year, with full-year revenue reaching $19.4 billion, up 5%. Operating cash flow for the year was $2.6 billion, while free cash flow stood at $2.2 billion. Shareholders benefitted from $2 billion returned through dividends and repurchases. A cash dividend of $0.29 per share was announced for Q1 2023, reflecting a 7% increase. Guidance for Q1 2023 projects revenue decline of 1.5% to 2.5%. A $59 million impairment related to a health sciences contract negatively impacted margins and EPS. The company appointed Eric Branderiz as an independent director.

NICE and Cognizant have launched a strategic partnership aimed at enhancing customer experience (CX) transformation through integrated cloud solutions. This collaboration combines Cognizant's expertise in business transformation with NICE CXone's advanced CX platform, facilitating the adoption of digital and AI-driven solutions for organizations. The partnership is expected to create significant growth opportunities within their customer bases, focusing on improving customer and agent experiences via a unified CCaaS suite. Previous collaborations have successfully reduced wait times and accelerated platform deployments.

Cognizant (NASDAQ: CTSH) has signed a new 10-year services agreement valued at approximately $1 billion with CoreLogic, enhancing their longstanding partnership. This agreement aims to leverage Cognizant's digital transformation expertise, focusing on cloud migration, automation, and platform innovations that will lower technology costs for CoreLogic. The collaboration seeks to improve customer experience and operational efficiency within the real estate sector. Since 2011, Cognizant has provided application development, analytical modeling, and business process services to CoreLogic, reinforcing their strategic relationship.

Cognizant has announced an agreement to acquire Mobica, a Manchester-based IoT software engineering services provider. This acquisition, expected to close in February 2023, will enhance Cognizant's embedded software engineering capabilities in the technology and automotive sectors, adding nearly 900 employees, including 550 engineers in Poland. Recognized for its expertise in digital transformation, Mobica's integration will help Cognizant tap into a growing market projected to reach $164 billion by 2026. Financial details were not disclosed, but the move aims to strengthen Cognizant's offerings and competitive edge in enterprise digital transformation.

Hansen Technologies (ASX: HSN) has announced a global collaboration with Cognizant (Nasdaq: CTSH) to develop a digital services marketplace solution. This partnership aims to enhance services for communications service providers (CSPs) utilizing Hansen's software suite. Together, they plan to leverage the rising demand for 5G and IoT, facilitating B2B2X use cases across various sectors including healthcare and finance. With the new digital marketplace, CSPs can offer unique market solutions by integrating their core services with partner offerings. The initiative reflects a strategic move towards monetizing emerging revenue streams driven by technological advancements.

Cognizant (Nasdaq: CTSH) has scheduled its fourth-quarter 2022 earnings release for February 2, 2023, after the market closes. Following the earnings announcement, management will host a conference call at 5:00 p.m. Eastern to discuss the quarter's operating performance. Interested parties can join the call via phone or stream it live on the company's Investor Relations website. Recordings of the call will be available for replay for up to two weeks post-call. This earnings report is crucial for investors, as it could signal future performance and strategic directions.

Cognizant (Nasdaq: CTSH) has appointed Ravi Kumar S as its new CEO, effective immediately, succeeding Brian Humphries, who will serve as a special advisor until March 15, 2023. Kumar, with over 20 years of experience in technology consulting, previously held the role of President at Infosys. Concurrently, Stephen J. Rohleder has been elected as Chair of the Board. Cognizant also updated its 2022 revenue guidance to approximately $4.8 billion for Q4 and $19.4 billion for the full year, reflecting modest growth and an adjusted operating margin of about 15.3%.

Syniti and Cognizant have established a strategic alliance to enhance data transformation for customers migrating to SAP S/4HANA. This partnership will leverage Syniti's Knowledge Platform (SKP), streamlining data migration processes. According to IDC, organizations utilizing Syniti's solutions can expect a 46% faster migration, with a projected 314% ROI over three years, equating to an annual benefit of $4.16 million. This collaboration aims to reduce complexities in data migration, enabling clients to realize business value more effectively.

Harris Williams is advising Utegration on its sale to Cognizant (NASDAQ: CTSH). Utegration specializes in SAP consulting for the utilities and energy sectors, boasting strong customer ties in North America. This strategic acquisition aims to enhance Cognizant's capabilities in providing software and services related to SAP and includes Utegration's industry expertise and technology solutions. RLH Equity Partners, Utegration's parent, focuses on high-growth enterprises, especially in technology and consulting services, demonstrating the ongoing investor interest in the utility sector's modernization.