Cognizant announced that its Board of Directors approved a $2 billion increase to the company’s existing share repurchase authorization, while also raising its 2026 share repurchase target to $2 billion, up from the company’s prior expectation of $1 billion.
The company said the additional $1 billion in share repurchases is expected to be completed during the second quarter of 2026. Following the authorization increase approved on May 17, 2026, Cognizant said approximately $3.45 billion remains available under the company’s repurchase program.
Cognizant also disclosed that it plans to draw down $1 billion from its existing revolving credit facility in connection with the accelerated repurchase plan and the anticipated closing of its previously announced acquisition of Astreya. The company said it continues to maintain flexibility within its long-term capital allocation strategy, including pursuing strategic acquisitions.
In addition, Cognizant CEO Ravi Kumar S is scheduled to participate in a fireside chat at the J.P. Morgan 2026 Global Technology, Media and Communications Conference on May 18 at 3:30 p.m. EST.
Cognizant describes itself as an AI builder and technology services provider focused on helping enterprises develop full-stack AI solutions and integrate AI investments into business operations.
KEY QUOTES:
“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. 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.”
Ravi Kumar S, CEO, Cognizant
“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.”
Jatin Dalal, Chief Financial Officer, Cognizant
