Cognizant Expands Neuro Suite With Edge AI Platform

Cognizant Technology Solutions CTSH benefits from an expanding portfolio with the recent launch of Neuro Edge, a new platform in its Neuro suite.

The solution empowers businesses across industries to harness the power of edge AI, enabling real-time decision-making and operational efficiency while reducing dependency on centralized servers and the cloud.

Neuro Edge supports a hybrid Cloud + Edge AI approach, ensuring data privacy, security and seamless integration with existing IT environments.

With applications spanning healthcare, manufacturing, retail, automotive and more, Cognizant is poised to transform enterprise capabilities in AI-driven edge computing.

Cognizant's Prospects Driven by Strong Partner Base

The latest move bodes well with CTSH's focus on enhancing AI capabilities and providing industry-specific solutions through the Cognizant Neuro Edge platform.

Further expanding its portfolio, Cognizant recently announced an agreement with Texas Dow Employees Credit Union (TDECU) to leverage its AI-driven Neuro IT Operations platform for enhancing operational efficiency, resilience and customer experience in TDECU's transformation journey.

Cognizant's robust partner base, which includes the likes of Gentherm THRM, Microsoft and CNO Financial Group CNO, is a critical catalyst. Its robust pipeline, which includes a favorable mix of new opportunities, is noteworthy.

In first-quarter 2024, CTSH demonstrated significant improvement in securing large deals, winning several contracts worth more than $100 million each.

The company recently collaborated with Gentherm to provide engineering services, including systems engineering, validation and model-based development, aiming to enhance agility and scalability in product development through cloud-native technologies and virtualization.

In April, Cognizant, in collaboration with Microsoft, announced an expanded partnership aiming to leverage generative AI and Copilots to drive innovation across industries, focusing on transforming enterprise operations and enhancing employee experiences.

In first-quarter 2024 Cognizant 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.

Conclusion

Despite an expanding portfolio and a strong partner base, weakness in the Financial Services segment negatively impacted Cognizant's top line.

In first-quarter 2024, revenues of $4.76 billion saw a year-over-year decline of 1.1% and 1.2% at constant currency (cc). The Financial Services revenues dropped 6.2% year over year to $1.38 billion during this period.

The company's shares have declined 10.3% against the Zacks Computer & Technology sector's growth of 24.5% year to date.

This Zacks Rank #2 (Buy) company expects second-quarter 2024 revenues to be between $4.75 billion and $4.82 billion, indicating a decline of 2.9% to 1.4% (a decline of 2.5-1% at cc).

The Zacks Consensus Estimate for second-quarter revenues is pegged at $4.81 billion, indicating a decline of 1.63% from year-ago levels.

The consensus mark for earnings is pegged at $1.12 per share, unchanged in the past 30 days.

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