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Cognizant (CTSH) Expands Clientele With Gentherm Partnership

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Cognizant Technology Solutions (CTSH - Free Report) is benefiting from an expanding clientele and strong partner base. It recently collaborated with Gentherm (THRM - Free Report) to provide crucial engineering services from its base in Hyderabad, India.

CTSH will also enhance Gentherm’s capabilities in systems engineering, validation and model-based development.

Cognizant established a specialized test facility to support research and development efforts for Gentherm’s thermal management and patient temperature systems.

This collaboration underscores Cognizant’s expertise in cloud native technologies and virtualization, aimed at enhancing Gentherm’s agility, scalability and efficiency in product development.

 

Cognizant’s Prospects Driven by Strong Partner Base

The latest move bodes well with CTSH’s commitment to enhancing engineering capabilities and fostering advancement in thermal management and pneumatic comfort technologies for automotive and medical industries through partnerships.

CTSH’s robust partner base, which includes the likes of Microsoft (MSFT - Free Report) and Fair Isaac (FICO - Free Report) , is a critical catalyst.

In first-quarter 2024, it expanded its partnership with Microsoft, integrating Microsoft Copilot and Cognizant’s advisory and digital transformation services to drive generative AI adoption and facilitate business transformation for employees and enterprise clients.

Cognizant also partnered with FICO to introduce a cloud-based, real-time payment fraud prevention solution utilizing FICO Falcon Fraud Manager, leveraging AI and ML to safeguard North American banks and payment service providers from fraud amid rising instant digital payments.

Despite an expanding clientele and strong partner base, a challenging macroeconomic environment, along with weakness in the Financial Services segment, is a concern for CTSH’s prospects.

In the first quarter of 2024, Financial Services revenues declined 6.2% year over year to $1.38 billion.

Cognizant’s shares have declined 13.2% against the Zacks Computer & Technology sector’s growth of 24.2% year to date.

This Zacks Rank #3 (Hold) 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 constant currency). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for the second quarter 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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