Cognizant Technology

With its results around the corner, it would be interesting to look at Cognizant’s results from the last quarter. The company had delivered revenue below the guidance range of the management, primarily driven by a lower billable headcount in North America. Cognizant has been seeing revenue growth from health services and from products and resources driven by demand for its digital services among travel and hospitality, consumer goods, automotive, and logistics clients. Revenue also grew in technology, media, and communication, driven by strength across digital native clients. Among key updates, Cognizant announced the acquisition of AustinCSI, the premier digital transformation consultancy that specializes in enterprise data and cloud analytics advisory services. Also, Cognizant announced an agreement to acquire the application management practices and professional services of OneSource Virtual, a Dallas-based Workday partner. We provide the stock of Cognizant a ‘Hold’ rating with a revision in the target price.