Cognizant Technology Solutions (CTSH) is scheduled to report its fourth-quarter 2024 results on Feb. 05.The Zacks Consensus Estimate for earnings is pegged at $1.13 per share, which has increased by a penny in the past 30 days. This indicates a decline of 4.24% from the figure reported in the year-ago quarter. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Cognizant expects fourth-quarter 2024 revenues between $5 billion and $5.1 billion, indicating growth of 5.1%-7.1% (an increase ...

Wall Street analysts expect Cognizant (CTSH) to post quarterly earnings of $1.13 per share in its upcoming report, which indicates a year-over-year decline of 4.2%. Revenues are expected to be $5.06 billion, up 6.4% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 1.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a comp ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Cognizant (CTSH) . This company, which is in the Zacks Business - Software Services industry, shows potential for another earnings beat.This information technology consulting and outsourcing firm has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an ...

Core Insights - Cognizant has announced an expanded agreement with Medidata to enhance support for life sciences clients and improve clinical trial development through AI-powered technologies [1][3] Partnership Details - The renewed multi-year agreement includes a dedicated team of Medidata Platform specialists to assist clients in pharmaceutical, biotech, medical device, and contract research organizations [2] - The collaboration aims to maximize Medidata's value for life sciences clients, focusing on improving user experience and patient outcomes [2][4] Technological Integration - The partnership combines Medidata's advanced AI-driven technologies with Cognizant's industry knowledge to streamline R&D efforts and derive actionable insights from complex data [3] - Solutions such as Medidata Clinical Data Studio, Medidata Health Record Connect, and the myMedidata patient portal are part of the initiative to transform R&D experiences [3] Strategic Goals - The collaboration seeks to unlock the full potential of clients' clinical data and processes, enhancing user satisfaction and enabling faster, better-informed decision-making [4]

Core Insights - Cognizant has expanded its partnership with Gilead Sciences to enhance customer service, employee engagement, and business value through AI-driven solutions [1][3] - The collaboration aims to improve cost leadership and productivity for Gilead while leveraging machine learning and generative AI [1][4] - Cognizant's Neuro AI generative AI platform will be utilized to accelerate value creation and improve operational efficiencies for Gilead [3][4] Company Overview - Cognizant has supported Gilead's global IT infrastructure and digital transformation initiatives over the past decade [2] - Gilead Sciences is a biopharmaceutical company focused on developing innovative medicines for life-threatening diseases, operating in over 35 countries [6] Partnership Goals - The expanded agreement seeks to provide significant cost savings that can be reinvested into Gilead's core life sciences business [3] - Cognizant aims to transform the user experience of IT services with custom-built generative AI solutions [3][4] - The partnership is expected to enhance operational efficiencies through leading-edge automation and managed services frameworks [4]

Core Viewpoint - The market anticipates a year-over-year decline in Cognizant's earnings despite higher revenues, with a focus on how actual results compare to estimates [1][2]. Earnings Expectations - Cognizant is expected to report quarterly earnings of $1.13 per share, reflecting a year-over-year decrease of 4.2% [3]. - Revenue projections stand at $5.07 billion, indicating a 6.5% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.17% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Cognizant is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.09% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likelihood of actual earnings deviating from consensus estimates, with positive readings being more predictive of earnings beats [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - Cognizant has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +9.65% in the last reported quarter [12][13]. Conclusion - Cognizant does not currently appear to be a strong candidate for an earnings beat, and investors should consider other factors when evaluating the stock ahead of its earnings release [16].

Core Insights - McDonald's Corporation (MCD) has extended its partnership with Cognizant Technology Solutions Corporation (CTSH) for several years, building on their collaboration since 2017, focusing on technological excellence and innovative solutions in the restaurant industry [1][2] Partnership Details - The renewed agreement allows Cognizant to continue supporting McDonald's in key enterprise areas such as Global Finance Systems and Human Capital Management, which includes payroll processing, franchisee management, master data management, and legal applications [2] - Cognizant will contribute its expertise in product development, digital engineering, and quality assurance, along with innovations in Cloud, Enterprise AI, and Generative AI, aimed at enhancing staff enablement, customer experience, and operational efficiency for McDonald's [3] Strategic Initiatives - McDonald's operates in over 100 countries, focusing on sustained product innovation, geographic expansion, loyalty programs, and digital initiatives to enhance customer experience, operational improvements, service times, and customer satisfaction [4] - The company aims to improve performance in International Operated Markets, including Australia, Canada, France, Germany, and the United Kingdom, through value meals, menu customization, restaurant reimaging, efficient marketing, and increased convenience via delivery and digital presence [5] Financial Performance - McDonald's shares have increased by 11.3% over the past six months, compared to a 13.2% growth in the Zacks Retail - Restaurants industry [7] - Despite macroeconomic challenges and rising commodity and wage costs, McDonald's anticipates that its strategic initiatives will drive growth, with plans to open 50,000 restaurants by 2027 [7]

Core Insights - Cognizant Technology Solutions (CTSH) has extended its partnership with McDonald's (MCD) for several years, focusing on innovation through advanced technologies to enhance staff enablement, customer experience, and operational efficiency [1][2] Group 1: Partnership and Collaboration - The renewed agreement with McDonald's emphasizes both companies' commitment to driving innovation in the food services industry [1] - Cognizant will leverage its expertise in Cloud, Enterprise AI, Generative AI, and digital engineering to support McDonald's in key enterprise areas [2] Group 2: Business Growth and Clientele - Cognizant is experiencing growth due to an expanding clientele and a strong partner base, with a favorable mix of business renewals and new opportunities expected to drive prospects in 2025 [3] - In Q3 2024, Cognizant signed six deals exceeding $100 million each, totaling 19 large deals in 2024, surpassing the 17 deals secured in 2023 [3][4] Group 3: Strategic Partnerships - Cognizant's partner base includes notable companies such as CrowdStrike, Zscaler, ServiceNow, IBM, Palo Alto Networks, NVIDIA, and Amazon, which are expected to enhance its prospects [4] - A strategic partnership with CrowdStrike aims to improve enterprise security transformation using the AI-native Falcon cybersecurity platform [4][5] - The partnership with Zscaler focuses on transforming security posture with an AI-enabled zero-trust cloud security platform [5] Group 4: AI Advancements - Cognizant has significantly invested in AI, committing $1 billion to enhance its platforms and capabilities, including Cognizant Neuro and Flowsource [6] - The launch of the Neuro AI Multi-Agent Accelerator and Multi-Agent Service Suite in January 2025 aims to help businesses adopt AI agents for improved operations and customer experiences [7] Group 5: Financial Performance and Estimates - The Zacks Consensus Estimate for Cognizant's 2025 revenues is $21.02 billion, indicating a year-over-year growth of 6.62% [8] - The consensus earnings estimate is $4.97 per share, reflecting a year-over-year increase of 6.58% [9] Group 6: Valuation and Market Performance - Cognizant shares are considered undervalued with a Value Score of B, and the forward 12-month Price/Sales ratio stands at 1.84, lower than the industry's 7 [10] - Over the past six months, Cognizant shares have gained 6.2%, slightly underperforming the broader Zacks Computer & Technology sector's return of 6.6% [10]

Strategic Partnership Overview - Cognizant and CrowdStrike announced a strategic partnership to enhance enterprise security transformation by delivering cybersecurity services powered by CrowdStrike's AI-native Falcon platform [1] - The partnership aims to streamline security operations, consolidate legacy point products, reduce cybersecurity program complexity, and strengthen overall cybersecurity posture [1] - The collaboration leverages Falcon® Next-Gen SIEM and Falcon® Cloud Security to provide advanced threat mitigation and cloud security solutions [1] Industry Context and Challenges - Organizations are increasingly adopting cloud services (IaaS, SaaS, PaaS, CaaS), exposing them to sophisticated cyber threats [2] - The cybersecurity skills gap and complex threat landscape necessitate solutions that transform security operations and consolidate point products [2] - Cloud exploitation cases surged by 110% over the past year, with cyberattacks accelerating in speed and sophistication, now measured in minutes [3] Partnership Benefits and Solutions - The partnership combines CrowdStrike's Falcon platform with Cognizant's Neuro® Cybersecurity platform, offering threat and vulnerability management and cloud infrastructure security [3] - The collaboration provides a flexible operations framework powered by AI-native technology, replacing legacy tools [3] - CrowdStrike's AI-native Falcon platform, combined with Cognizant's technology transformation expertise, delivers best-in-class protection, performance, and efficiency [4] Company Profiles - Cognizant focuses on modernizing technology, reimagining processes, and transforming experiences to help clients stay ahead in a fast-changing world [5] - CrowdStrike is a global cybersecurity leader, offering a cloud-native platform for protecting endpoints, cloud workloads, identity, and data [6] - The CrowdStrike Falcon® platform uses real-time indicators of attack, threat intelligence, and enriched telemetry to deliver hyper-accurate detections and automated protection [7] - The Falcon platform is designed for rapid deployment, superior protection, reduced complexity, and immediate time-to-value [8]

Core Insights - The joint study by Cognizant and Oxford Economics predicts that AI will influence 46% of consumer transactions in the U.S. by 2030, highlighting the necessity for businesses to leverage AI for enhancing customer experiences [1][2] - The study estimates that AI-influenced consumer spending in the U.S. will reach approximately $4.4 trillion by 2030, with significant contributions from the U.K. ($690 billion), Australia ($669 billion), and Germany ($539 billion) [1][2] Consumer Behavior Insights - U.S. consumers embracing AI are projected to drive nearly half (46%) of spending by 2030, with Australia leading at 55%, followed by Germany at 46% and the U.K. at 39% [2] - The study identifies three pivotal phases in the purchasing journey: Learn (product discovery), Buy (purchase decision), and Use (post-purchase engagement) [3][6] Economic Impact - The economic impact of AI adoption is substantial, with predictions indicating that AI could inject $1 trillion into the U.S. economy by 2032 [4] - Cognizant's initiatives aim to help businesses adapt to AI-empowered consumers and enhance the purchasing experience through AI integration [5][7] Consumer Comfort Levels - Consumers show the highest comfort level with AI during the discovery phase (Learn), with 47% expressing comfort in using AI for product selection [6] - Hesitation is noted during the decision-making phase (Buy), where 75% of consumers are unlikely to allow AI to make high-value purchases without direct authorization [6] - Comfort levels improve in the post-sale phase (Use), with 28% of consumers comfortable with AI reordering low-priced items [6] Strategic Initiatives - Cognizant has launched Cognizant Moment™, aimed at helping clients leverage AI to enhance customer experience and drive growth [7] - The Synapse program is a global upskilling initiative designed to redefine tech education and workforce development for over one million individuals worldwide [8] Methodology - The study utilized a multi-modal approach, including a survey of 8,400 adults across the U.S., U.K., Australia, and Germany, along with in-depth interviews to assess consumer attitudes towards AI in purchasing [9]