Cognizant Technology Solutions - CTSH STOCK NEWS

Cognizant (NASDAQ: CTSH) has announced an extended collaboration with Cengage Group, a global edtech company, under a new seven-year agreement. This partnership focuses on utilizing advanced technology services to enhance operational efficiency, reduce costs, and support Cengage's digital transformation journey. Cognizant's strategic role includes providing operations services in global Finance and HR, cloud environment support, and corporate security services. The collaboration will leverage Cognizant's expertise in generative AI, cloud operations, and cybersecurity to streamline operations and innovate educational solutions. Cengage aims to achieve improved personalized, interactive, and immersive learning experiences through this partnership.

Cognizant (NASDAQ: CTSH) has entered an agreement with Gentherm (NASDAQ: THRM) to provide advanced engineering services, including systems engineering, validation, and model-based development. This collaboration will be centered in Hyderabad, India, where Cognizant has established a dedicated delivery and test facility for Gentherm.

The partnership aims to develop next-generation thermal management and pneumatic comfort technologies for the automotive industry, enhancing vehicle experiences and improving operational agility and efficiency. Cognizant will contribute its AI and Cloud Software Engineering expertise to help accelerate Gentherm's product development and market entry.

Both companies emphasize the importance of collaboration to drive innovation and meet the growing demands for software-defined vehicles.

Cognizant has introduced its first healthcare large language model solutions using Google Cloud's generative AI technology, including Vertex AI and Gemini models. These solutions aim to improve healthcare administrative processes, enhancing efficiency and patient experiences. The partnership between Cognizant and Google Cloud, which began last August, has earned Cognizant the '2024 Industry Solution Services Partner of the Year - Healthcare and Life Sciences' award. Key applications include streamlining marketing operations, call center operations, provider management, and contracting. Specific examples include an appeals resolution assistant to automate data retrieval and analysis, a contract management solution to reduce errors and boost productivity, a marketing content assistant for consistent communication, and a health plan shopper that aids in plan selection. These innovations, presented at the 2024 Cognizant Health Sciences Conference, aim to reduce administrative burdens and improve operational efficiency while adhering to privacy and security standards.

Cognizant (NASDAQ: CTSH) announced the acquisition of Belcan for approximately $1.3 billion. This move is set to bolster Cognizant's engineering capabilities and establish a strong presence in the aerospace and defense sectors.

The acquisition is expected to significantly expand Cognizant's access to the $190 billion Engineering Research & Development (ER&D) services market and deliver more than $100 million in annual revenue synergies within three years. Cognizant plans to host an investor call on June 10, 2024, to discuss the transaction.

The deal includes $1.19 billion in cash and 1.47 million Cognizant shares, with an anticipated close by September 30, 2024. Belcan's CEO, Lance Kwasniewski, will continue to lead Belcan, which will operate as a unit of Cognizant.

Cognizant and Nexthink have partnered to launch Cognizant WorkNEXT™ Workplace Intelligence, aiming to transform digital workplace experiences using Nexthink's flagship product, Nexthink Infinity.

This new offering targets improved workplace outcomes by integrating predictive intelligence, user engagement, and automated issue resolution features to reduce operational costs and enhance productivity.

Cognizant's integration with Nexthink aims to support hybrid work models, enabling proactive IT support and better talent retention. The platform will feature real-time user experience observability, early detection of performance issues, and proactive remediation capabilities.

Fortive, a key client, has already benefited from these solutions, seeing improvements in employee experience and operational efficiency.

Cognizant (Nasdaq: CTSH) has announced its participation in two upcoming investor conferences.

Chief Executive Officer Ravi Kumar S will present at the J.P. Morgan 52nd Annual Global Technology, Media and Communications Conference on May 21, 2024, at 11:30AM EST.

Chief Financial Officer Jatin Dalal will speak at the TD Cowen 52nd Annual Technology, Media & Telecom Conference on May 30, 2024, at 9:05AM EST.

Live audio webcasts of these presentations will be accessible on Cognizant's investor relations website, with replays available for 90 days.

Cognizant (Nasdaq: CTSH) reported first quarter 2024 financial results with revenue of $4.8 billion, a 1.1% year-over-year decline, or 1.2% decline in constant currency. Operating margin remained flat at 14.6%, while Adjusted Operating Margin expanded to 15.1%. The company returned $284 million to shareholders through share repurchases and dividends. Revenue guidance for 2024 is unchanged at (2.0%) to 2.0% in constant currency, with Adjusted Operating Margin guidance at 15.3-15.5%.

Cognizant (Nasdaq: CTSH) has entered into a five-year strategic partnership with Telstra, aiming to enhance software engineering capabilities, drive innovation, and improve customer and employee experience. The collaboration will accelerate Telstra's speed to market, operational efficiency, and technology outcomes by leveraging modern technologies like artificial intelligence (AI).