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Cognizant Technology Solutions CTSH is expanding its clientele through its partnership with Omron OMRNY, which aims to integrate Information Technology (IT) and Operational Technology (OT) in the manufacturing industry.
As the engineering partner for Omron’s Industrial Automation Business (IAB), Cognizant will combine its expertise in cloud AI, IOT, and digital twin technologies with Omron’s advanced OT solutions, including sensors, controllers, and robotics.
The joint offering will also provide a comprehensive solution to improve operational efficiency, sustainability, and productivity across industries such as automotive, semiconductor, and life sciences. The partnership also aims to deliver continuous IT-OT improvements to optimize manufacturing processes and reduce environmental impact.
Cognizant’s Rich Partner Base to Drive Prospects
Cognizant shares have plunged 13.6% in the year-to-date period compared with the broader Zacks Computer & Technology sector’s decline of 20.8%. This is attributed to an expanding clientele and a strong partner base. A favorable mix of business renewals and expansions of new opportunities are major drivers for Cognizant in 2025.
Cognizant Technology Solutions Corporation Stock Price and Consensus
Cognizant Technology Solutions Corporation price-consensus-chart | Cognizant Technology Solutions Corporation Quote
The company’s expanding partner base, which includes Omron, NVIDIA NVDA, ServiceNow NOW, Boehringer Ingelheim, CrowdStrike, Zscaler, IBM, Palo Alto Networks and Amazon, is expected to drive its prospects in 2025. In the fourth quarter of 2024, CTSH secured 10 large deals, up from seven in the previous year, bringing the total to 29 large deals for the year.
In March, Cognizant launched an AI-powered dispute management solution in partnership with ServiceNow. The solution leverages ServiceNow’s advanced dispute management technology to streamline dispute resolution for mid-market banks in North America.
Cognizant, in collaboration with NVIDIA, announced advancements in AI technology. It leverages NVIDIA’s advanced AI solutions across five key areas, including enterprise AI agents, industry-specific large language models, digital twins for smart manufacturing, AI infrastructure, and the integration of NVIDIA’s AI technology into Cognizant’s Neuro AI platform to drive business transformation.
CTSH Initiates Strong 2025 Guidance
Cognizant’s strong portfolio and expanding partner base reflect solid top-line growth potential over the long run.
CTSH expects first-quarter 2025 revenues between $5 billion and $5.1 billion, indicating growth of 5.6-7.1% and an increase of 6.5-8% on a cc basis.
For 2025, revenues are expected to be $20.3-$20.8 billion, implying an increase of 2.6-5.1% on a reported basis and growth of 3.5-6% on a cc basis.
The adjusted operating margin for 2025 is expected to be 15.5-15.7% (an increase of 20-40 basis points).
Adjusted earnings for 2025 are expected to be between $4.90 and $5.06 per share.