Cognizant Increases 2026 Share Repurchase Target by $1 Billion to $2 Billion
Board Approves $2 Billion Increase in Stock Repurchase Authorization
Additional $1 Billion of Shares Expected to be Repurchased in the Second Quarter of 2026
Cognizant CEO to Participate in Fireside Chat Hosted by J.P. Morgan on May 18, 2026
TEANECK, N.J., May 18, 2026 /PRNewswire/ -- Cognizant (Nasdaq: CTSH), a leading AI builder and technology services provider, today announced that its Board of Directors has authorized a $2 billion increase to its existing share repurchase program, and that it has increased its share repurchase target for 2026 to $2 billion, an increase of $1 billion over its prior expectation. The additional $1 billion in share repurchases are expected to be completed during the second quarter of 2026.
"Our plan to increase the amount of share repurchases reflects our strong conviction in the long-term opportunity AI creates and our critical role in it as an AI builder," said Ravi Kumar S, CEO. "We believe a fundamental shift in the IT services is underway, one that strengthens Cognizant's position for future growth. We believe our current share price significantly undervalues those prospects. I am confident that our early investments will position us to emerge as a leader in AI-led enterprise transformation in the years ahead."
"A strong balance sheet and robust free cash flow give us the flexibility to opportunistically accelerate the return of capital to shareholders while we continue to invest for growth, including through strategic M&A," said Jatin Dalal, Chief Financial Officer.
Return of Capital to Shareholders
On May 17, 2026, the Board of Directors approved an increase of $2 billion to the amount authorized under the Company's existing stock repurchase program. With this increase, as of May 17, 2026, there is approximately $3.45 billion remaining under the share repurchase authorization. For 2026, the Company is increasing its share repurchase expectation by $1 billion to $2 billion. In connection with this plan and given the anticipated closing of our previously announced acquisition of Astreya, the Company will draw down $1 billion from its existing revolving credit facility. The Company reiterates its long-term capital allocation framework, including the flexibility to pursue strategic acquisitions.
Conference Participation
Cognizant CEO, Ravi Kumar S, will participate in a fireside chat at the J.P. Morgan 2026 Global Technology, Media and Communications Conference today, May 18, at 3:30 PM EST.
A live audio webcast of the presentation will be available at Cognizant's website: http://investors.cognizant.com
A replay of the webcast will remain available on the company's website for 90 days.
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