Cognizant (CTSH) Streamlines Healthcare With AI-Powered LLMs
Musk doubles down on Tesla growth after successful shareholder vote Cognizant Technology Solutions CTSH is gaining momentum into the life science and healthcare domain with its recent partnership with Alphabet’s GOOGL cloud business, Google Cloud.
As part of the expanded collaboration, Cognizant has introduced a suite of healthcare large language model (LLM) solutions leveraging Alphabet’s cloud business, Google Cloud’s generative AI technology, including the Vertex AI platform and Gemini models.
The solutions are aimed to streamline complex administrative processes and enhance the overall experience within healthcare systems.
Partnerships and Innovations
Cognizant’s solutions are designed to streamline critical workflows such as appeals management, contract lifecycle, marketing operations, and health plan selection, aiming for improvement in operational speed, accuracy, and overall service quality for healthcare stakeholders.
Aside from Google Cloud, CTSH teamed up with NVIDIA NVDA, Microsoft MSFT, and Clario to bolster its presence in the healthcare sector.
In the first quarter of 2024, Cognizant announced the integration of its generative AI technology with NVIDIA’s BioNeMo gen AI platform. The collaboration aims to address complex challenges in drug discovery within the life sciences industry, enhancing productivity in the development process and accelerating the introduction of new life-saving treatments to the market.
CTSH also partnered with Microsoft to incorporate gen AI into healthcare administration through TriZetto Assistant on Facets, leveraging Azure Open AI Services and Semantic Kernel to boost productivity, efficiency, and patient care while maintaining regulatory compliance and data security.
In March, the company has been selected by Clario, a healthcare research technology company, to support its global IT infrastructure and applications, providing automation and digital technologies to reduce costs and accelerate time to market.
Challenges and Outlook
Despite an expanding clientele and strong partner base, challenging macroeconomic environment, along with weakness in the Financial Services segment, is a concern for CTSH’s prospects.
In the first quarter of 2024, Financial Services revenues decreased 6.2% year over year to $1.38 billion.
Cognizant’s shares have declined 14.5% against the Zacks Computer & Technology sector’s growth of 9.8% year to date.
This Zacks Rank #3 (Hold) company expects second-quarter 2024 revenues between $4.75 billion and $4.82 billion, indicating a decline of 2.9% to 1.4% (a decline of 2.5-1% on a cc basis). The Zacks Consensus Estimate for the second quarter is pegged at $4.81 billion, indicating a decline of 1.63% from the year-ago reported level.
The consensus mark for earnings is pegged at $1.12 per share, unchanged in the past 30 days.
