Cognizant Technology Solutions reports news on its role as a technology services provider and AI builder for enterprise clients. Company updates commonly cover full-stack AI solutions, secure and governed AI deployment, ServiceNow implementation and managed services engagements, and IT modernization work for large organizations.
Recurring developments also include quarterly financial results, bookings trends, investor conference participation, AI Lab patent activity, and the Cognizant Innovation Network, its corporate investment arm focused on enterprise software startups in AI, data, cybersecurity and cloud. News may also include updates from Belcan, a Cognizant company serving aerospace, defense, space, automotive, industrial, marine and government services markets.
Cognizant Technology Solutions (CTSH) reported Q2 2020 revenue of $4.0 billion, a 3.4% decline year-over-year, adversely affected by a ransomware attack and exit from certain services. The GAAP operating margin dropped to 11.7% from 14.9%, while net income decreased to $361 million compared to $509 million in Q2 2019. Despite challenges, bookings increased by 14% in the first half of 2020. The company expects full-year revenue between $16.4 billion and $16.7 billion, and declared a quarterly dividend of $0.22 per share.
Cognizant (Nasdaq: CTSH) announced an agreement to acquire New Signature, a leading Microsoft public cloud transformation specialist. The acquisition aims to enhance Cognizant's hyperscale cloud advisory services and establish a dedicated group focused on Microsoft cloud solutions. Closing is expected in Q3 2020, pending regulatory approval. New Signature will add over 500 cloud experts from the U.S., U.K., and Canada to Cognizant's workforce. This acquisition marks Cognizant's fifth cloud-related acquisition in 2020, reinforcing its commitment to digital transformation.
Cognizant (Nasdaq: CTSH) announced its Shared Investigator Platform (SIP) has surpassed 100,000 users across 84 countries, highlighting its essential role in clinical trials during the COVID-19 pandemic. The platform, utilized by major biopharmaceutical companies, enhances collaboration and reduces site activation cycle time by 50%. Launched in 2016, SIP connects trial sponsors and medical professionals, streamlining processes crucial for drug development. This milestone underscores the platform's value in accelerating innovative therapies and improving patient care.
Cognizant (Nasdaq: CTSH) will announce its second-quarter 2020 earnings results on July 29, 2020, after market close. Following the announcement, management will host a conference call at 5:00 p.m. Eastern to discuss performance. Domestic participants can dial 877-810-9510, while international callers can use 201-493-6778, entering the passcode 'Cognizant Call'. A replay will be accessible after the call, and for those unable to join live, it can also be accessed via Cognizant’s website for 60 days.
Cognizant (Nasdaq: CTSH) has been named a Leader in Everest Group's Guidewire Services PEAK Matrix® Assessment 2020, marking its continued dominance in the insurance tech sector. Recognized as a 'Star Performer,' Cognizant showcased substantial revenue growth in Guidewire services. The report highlights a 15% growth in Guidewire service utilization in 2019, with the market recently exceeding $2 billion. Cognizant's strategic use of AI and automation has led to significant operational efficiencies for clients, including a $20M saving for a major P&C insurer.
Cognizant (Nasdaq: CTSH) has partnered with Verily Life Sciences to enhance COVID-19 testing accessibility across the United States. The collaboration supports Verily's Baseline COVID-19 Testing Program, which has administered over 284,000 tests at 140 sites in 13 states. Cognizant is deploying its life sciences experts to facilitate test scheduling, part of the company’s broader $10 million pledge for pandemic relief. The initiative aims to ensure wellness as communities reopen and continues to expand testing locations nationwide.