CTSH partners with Omron to improve manufacturing efficiency, faces challenges, negative for stock.

From Nasdaq: 2025-04-09 15:00:00

Cognizant Technology Solutions (CTSH) is expanding its clientele by partnering with Omron (OMRNY) to integrate IT and OT in the manufacturing industry. The joint offering aims to improve operational efficiency and sustainability in industries like automotive and life sciences.

CTSH has seen a 13.6% decline in share price this year. The company’s strong partner base, including Omron, NVIDIA, and ServiceNow, is expected to drive growth in 2025. CTSH secured 10 large deals in Q4 2024, bringing the total to 29 for the year.

CTSH expects strong growth in 2025, with revenues estimated between $5-5.1 billion in Q1 and $20.3-20.8 billion for the year. Adjusted earnings are forecasted to be between $4.90 and $5.06 per share. The company also anticipates a slight margin increase.

Earnings estimates for CTSH show upward movement, with Q1 2025 revenues expected to reach $5.07 billion and earnings at $1.19 per share. Full-year 2025 revenues are estimated at $20.56 billion, with earnings projected at $4.96 per share.

Despite CTSH’s expanding clientele, challenges like macroeconomic conditions and cost optimization pressures exist. The company faces negative impacts from currency exchange rates and a slight margin decline in Q1 2025. Investors are advised to stay away from the stock for now.



Read more at Nasdaq: CTSH Expands Clientele With OMRON Deal: Buy, Sell or Hold the Stock?