Cognizant (CTSH) Expands Healthcare Footprint With Fortrea Deal
Cognizant Technology Solutions CTSH is benefiting from an expanding clientele and strong partner base with its recent collaboration with Fortrea FTRE.
Fortrea selected Cognizant as its technology transformation provider. Over the course of a four-year agreement, Cognizant is poised to transform Fortrea's global technology environment, deploying next-generation hybrid cloud and platforms to drive digital innovation in the pharmaceuticals, biotech and medical devices sectors.
With a focus on enhancing digital infrastructure and elevating data capabilities, CTSH is set to redefine standards in the Contract Research Organization (CRO) industry and cater to the evolving needs of leading enterprises in healthcare and life sciences.
Cognizant’s shares have returned 12.3% compared with the Zacks Computer & Technology sector’s rise of 7% in the past six months. The outperformance can be attributed to Cognizant's expanding presence in high-growth sectors, mainly healthcare services, which has proven to be a key catalyst for its success.
The collaboration not only strengthens its position in healthcare services but also underscores its commitment to strengthen its position in the technology solutions landscape.
Cognizant Technology Solutions Corporation Price and Consensus
Cognizant Technology Solutions Corporation price-consensus-chart | Cognizant Technology Solutions Corporation Quote
Strong Partner Base Aids Cognizant’s Prospects
The latest move is in sync with Cognizant’s focus on driving technological innovation and enabling digital transformation across various sectors.
Cognizant is riding on a strong partner base with the likes of Alphabet GOOGL and ServiceNow NOW.
In partnership with Alphabet’s cloud offering Google Cloud, Cognizant is supporting Bendigo and Adelaide Bank, a major Australian retail bank, in rebuilding its digital banking system as part of the bank's broader transformation program.
In the third quarter of 2023, Cognizant deepened its relationship with ServiceNow through the launch of Telco Assurance 360, a cloud-based, AI-powered solution designed to revolutionize service management strategies for telecommunications companies in the AI era.
In December, Cognizant also finalized the acquisition of Thirdera, enhancing its ServiceNow Business Group and solidifying its partnership to achieve a $1 billion AI-driven automation business.
Another testament to its collaborative approach, Cognizant was selected by The University of Melbourne to implement the Tealium Customer Data Platform, aiming to enhance personalized experiences for students, staff and alumni and elevate constituent engagement in alignment with the university's commitment to excellence in teaching and research.
Cognizant’s strong portfolio and partner base are contributing to its growth prospects continuously and driving top-line growth.
However, the company is suffering from weakness in the Financial Services segment. It continues to expect the challenging macro environment to hurt spending rates and affect top-line growth.
Cognizant, which currently carries a Zacks Rank 3# (Hold), expects fourth-quarter 2023 revenues between $4.69 billion and $4.82 billion, indicating a decline of 3.1% to an increase of 0.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for the fourth quarter is pegged at $4.76 billion, indicating a year-over-year decline of 1.6%.
The consensus mark for earnings is pegged at $1.04 per share, unchanged in the past 30 days and indicating year-over-year growth of 2.97%.
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