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Cognizant Technology Solutions (NASDAQ: CTSH) is a globally renowned professional services company headquartered in Teaneck, New Jersey. Ranked 195 on the Fortune 500 list, Cognizant is celebrated for its innovative approach in transforming clients' business, operating, and technology models to thrive in the digital era. Employing nearly 300,000 people worldwide, with a significant portion situated in India, Cognizant offers comprehensive IT services including consulting and outsourcing to a diverse clientele across finance, healthcare, media, and more.
Recent Achievements and Partnerships:
- In April 2024, Cognizant partnered with McCormick & Company, Inc. to overhaul its global technology infrastructure using AI-powered tools, enhancing service productivity and user experience.
- The company announced its first quarter 2024 financial results, showcasing a robust performance with significant revenue and margin growth, driven by strategic deals and operational efficiencies.
- Cognizant continues to expand its philanthropic efforts through the Synapse program, having awarded $70 million in grants to uplift underrepresented communities and bridge skill gaps globally.
- The company has deepened its collaboration with Microsoft, acquiring 25,000 Microsoft 365 Copilot seats to enhance productivity and integrating AI for business transformation, further solidifying its market position.
- Cognizant also recently announced the acquisition of Belcan, LLC for approximately $1.3 billion, strengthening its ER&D capabilities and expanding its footprint in aerospace and defense sectors.
Financial Condition and Future Outlook:
Cognizant remains financially robust, consistently returning capital to shareholders through dividends and share repurchases. The company’s NextGen program and strategic acquisitions are set to drive future growth and innovation. With a focus on AI, cloud, and digital transformation, Cognizant is positioned to lead in delivering advanced technology solutions and maintaining a competitive edge in the global market.
Cognizant (CTSH) reported Q2 2024 financial results with revenue of $4.9 billion, exceeding guidance. Key highlights include:
- Revenue increased 1.9% sequentially (2.1% in constant currency)
- Operating margin improved to 14.6% from 11.8% in Q2 2023
- Adjusted Operating Margin expanded 100 basis points year-over-year to 15.2%
- Trailing 12-month bookings of $26.2 billion with a book-to-bill ratio of 1.4x
The company narrowed its full-year 2024 revenue guidance to a range of -0.5% to 1.0% growth in constant currency. Adjusted Operating Margin guidance remains unchanged at 15.3-15.5%, representing 20-40 basis points expansion year-over-year. CEO Ravi Kumar S emphasized progress on strategic priorities and improved organic growth outlook.
Cognizant's latest survey, 'New Work, New World: Quantifying Global Gen AI Momentum', reveals cautious optimism in generative AI adoption across industries. Key findings show:
- 77% of global companies aim to grow revenues through AI
- Average planned AI investment this year is nearly $50 million
- Only 26% have implemented cross-enterprise AI use cases
- 54% plan to upskill workers, 44% to transition displaced workers
The survey introduces a 'momentum score' for AI adoption, with North America leading at 15% above the global baseline. Companies recognize challenges in scaling AI, with 70% feeling they're not moving fast enough. The study, covering 2,200 executives from 23 countries and 15 industries, predicts generative AI could inject $1 trillion into the U.S. economy over the next decade.
Cognizant has launched Cognizant Moment™, a new AI-powered digital experience practice area designed to help clients leverage artificial intelligence to reimagine customer experience and drive growth. The practice builds on Cognizant's 20+ years of digital experience expertise and recent acquisitions in the space. Cognizant Moment™ focuses on intelligent ecosystem orchestration, connecting experiences, data, technology, and operations across the enterprise ecosystem.
The new practice aims to address challenges with capabilities across multiple workstreams, including intelligent ecosystem orchestration, business transformation, digital products & platforms, marketing & content, commerce, and learning. Cognizant Moment is positioned as one of the few modern experience practices that can deliver at scale globally with cutting-edge technical expertise.
Cognizant (NASDAQ: CTSH) has secured a strategic partnership with Hays, the world's leading specialist in workforce solutions and recruitment. As Hays' global technology partner, Cognizant will transform Hays' technology landscape to enhance operational efficiency and innovation capabilities. The partnership aims to:
- Implement a modern and secure technology environment
- Enhance customer experience and provide valuable data insights
- Support Hays' Applications, Infrastructure, and Transformation journey globally
- Manage IT operations across UK&IRE, CEMEA, Americas, and APAC regions
- Simplify business processes, platforms, and applications
- Leverage automation to unlock value for clients and the business
This collaboration is expected to improve operational support, enhance agility, and transform the IT landscape, ultimately leading to a more efficient and effective recruitment process for Hays.
Unitywater, a leading Queensland water utility, has entered into a 5-year collaboration with Cognizant (Nasdaq: CTSH) for ICT Support Managed Services. This partnership aims to enhance Unitywater's digital infrastructure, improving operational efficiency and productivity. Cognizant was chosen for its proven capabilities in delivering innovative digital solutions and IT managed services.
The collaboration aligns with Unitywater's strategic ambition of fostering healthy and thriving communities. Key performance indicators include the Net Promoter Score, which will measure customer satisfaction and the impact of Cognizant's services on Unitywater's IT users, operational efficiency, and productivity improvements.
Cognizant (Nasdaq: CTSH) and Whitbread have expanded their digital transformation partnership, focusing on enhancing customer experiences across the UK and Germany. The three-year collaboration aims to support Whitbread's digital growth strategy, building on Cognizant's previous work in modernizing Premier Inn's e-commerce site and key digital elements.
The expanded relationship will cover all aspects of Whitbread customers' journeys, from pre-booking to post-stay, with the goal of increasing direct bookings and unlocking new monetization opportunities. Cognizant will leverage its AI-assisted software development capabilities and innovation lab to rapidly test and refine new technology prototypes.
This partnership aligns with Whitbread's strategic priorities to innovate in core UK markets and strengthen its digital proposition in Germany. The collaboration is expected to drive bookings and growth across Premier Inn's expanding international property portfolio.
Cognizant (Nasdaq: CTSH), a leading IT, consulting, and business process services provider, has announced its second quarter 2024 earnings release and conference call schedule. The company will release its Q2 2024 results on Wednesday, July 31, 2024, after market close. A conference call with Cognizant management will follow at 5:00 p.m. Eastern to discuss the quarter's operating performance.
Investors can participate in the call by dialing 877-810-9510 (domestic) or 201-493-6778 (international) with the passcode: Cognizant Call. The call will also be available live on Cognizant's Investor Relations website. A replay will be accessible until August 14, 2024, via phone and on the company's website for 60 days following the call.
Cognizant (NASDAQ: CTSH) has announced a five-year strategic collaboration with Victory Capital Holdings, Inc. (NASDAQ: VCTR), a global asset management firm. Cognizant will provide Victory Capital with technology infrastructure, security, and data and analytics capabilities, including infrastructure management, security engineering, a 24/7 security operations center, and comprehensive service desk support.
The collaboration aims to deliver reliable, scalable, and secure IT solutions, with Cognizant committed to providing new service management capabilities, improved service productivity, cost savings, and scalability support for Victory Capital's business growth. This extends a decade-long partnership between the two companies, during which Cognizant has assisted Victory Capital in transforming its IT landscape and implementing technology for its new headquarters in San Antonio, Texas.
Cognizant (NASDAQ: CTSH) has appointed Karima Silvent as an independent director to its Board of Directors, expanding the board to 13 members, with 12 being independent. Ms. Silvent, currently Group Chief Human Resources Officer at AXA, brings over 20 years of experience in human resources, talent management, public policy, and government affairs. Her appointment aligns with Cognizant's goal to enhance leadership diversity and expertise, particularly in human capital strategies, and to bolster its position as an employer of choice. The board has added six new independent directors since 2020, three of whom are women.
Cognizant has launched Cognizant Neuro® Edge, an advanced platform designed to enhance AI deployment at the edge. This platform integrates real-time AI-enabled data processing across various industries, improving data privacy and operational efficiency. Neuro® Edge facilitates instant decision-making and complements Cloud AI with deeper insights from longitudinal data. It is cloud-agnostic, supporting hybrid and multi-cloud environments, and offers critical advantages for sectors needing real-time decision-making, privacy, and security. Potential applications include healthcare, energy, logistics, telecommunications, manufacturing, retail, and automotive. The platform, developed in collaboration with Qualcomm Technologies, promises to revolutionize the automotive experience through generative AI. Cognizant aims to make Edge AI applications faster and more accessible, allowing businesses to focus on deriving value from AI and IoT investments.
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