Cognizant
Cognizant makes bold $2 billion move as AI growth accelerates
Cognizant, a leading AI builder and technology services provider, has announced that its Board of Directors has authorised a $2 billion increase to its existing share repurchase programme and raised its 2026 share repurchase target to $2 billion — an increase of $1 billion from its earlier guidance.
The additional $1 billion in share repurchases is expected to be completed during the second quarter of 2026, underscoring the company’s confidence in its long-term growth strategy and market position.
“Our plan to increase the amount of share repurchases reflects our strong conviction in the long-term opportunities that artificial intelligence creates and our critical role in shaping that future as an AI builder,” said Ravi Kumar S, Chief Executive Officer of Cognizant.
“We believe a fundamental shift in IT services is underway — one that strengthens Cognizant’s position for future growth. We believe our current share price significantly undervalues these 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,” he added.
Commenting on the move, Jatin Dalal, Chief Financial Officer, said the company’s strong financial position provides flexibility to accelerate shareholder returns while continuing to invest strategically.
“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 mergers and acquisitions,” Dalal said.
Return of Capital to Shareholders
On May 17, 2026, Cognizant’s Board approved a $2 billion increase to the amount authorised under the company’s existing stock repurchase programme.
With this latest increase, approximately $3.45 billion remains available under the share repurchase authorisation as of May 17, 2026.
For 2026, the company has raised its share repurchase expectation by $1 billion to a total of $2 billion.
In connection with this plan, and in anticipation of the closing of its previously announced acquisition of Astreya, Cognizant will draw down $1 billion from its existing revolving credit facility.
The company also reaffirmed its long-term capital allocation framework, emphasising its continued flexibility to pursue strategic acquisitions while maintaining disciplined shareholder returns and sustained investment in growth opportunities, particularly in artificial intelligence and digital transformation.
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