Board Approves $2 Billion Increase to Share Repurchase Authorization
Expects to Repurchase an Additional $1 Billion in Stock in Q2 2026
Cognizant CEO to Participate in a Fireside Chat at J.P. Morgan on May 18, 2026
TEANECK, N.J.May 20, 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 raised its 2026 share repurchase target to $2 billion, an increase of $1 billion from its prior expectation. The additional $1 billion in share repurchases is expected to be completed in the second quarter of 2026.
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CEO Ravi Kumar S said: “Our planned increase in share repurchases reflects our strong confidence in the long-term opportunities created by AI and our critical role as an AI builder in this process. We believe the IT services industry is undergoing a fundamental transformation that will solidify Cognizant’s advantageous position in future growth. We believe our current stock price significantly undervalues these prospects. I am confident that our early investments will help us become a leader in AI-driven enterprise transformation in the years ahead.”
CFO Jatin Dalal said: “Our strong balance sheet and robust free cash flow give us the flexibility to time and accelerate the return of capital to shareholders, while continuing to invest in growth, including through strategic M&A.”
Returning Capital to Shareholders
On May 17, 2026, the Board approved a $2 billion increase to the company’s existing share repurchase program authorization. Following this increase, as of May 17, 2026, the company had approximately $3.45 billion remaining under its share repurchase authorization. In 2026, the company raised its share repurchase expectation by $1 billion to $2 billion. Under this plan, and considering the anticipated closing of the previously announced acquisition of Astreya, the company will draw $1 billion from its existing revolving credit facility. The company reaffirms its long-term capital allocation framework, including flexibility for 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 p.m. ET.
A live audio webcast of the presentation will be available on the Cognizant website: http://investors.cognizant.com
A replay of the webcast will be available on the company’s website for 90 days.
About Cognizant
Cognizant (NASDAQ: CTSH) is an AI builder and technology services provider dedicated to bridging AI investment and enterprise value by building full-stack AI solutions for its clients. With deep industry, process, and engineering expertise, we deeply integrate unique business scenarios with technology systems to unlock human potential, deliver tangible returns, and help global enterprises stay ahead in a rapidly changing world. Visit cognizant.ai or follow us on social media @cognizant for more information.
Forward-Looking Statements
This press release includes forward-looking statements that may be considered under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which is necessarily subject to risks, uncertainties, and assumptions about future events that may not prove accurate. These statements include, but are not limited to, those related to our share repurchase plan, strategy, strategic partnerships and collaborations, market competitive position and opportunities, business investments and growth, the pace, scale, and client demand for generative AI, recruitment and talent efforts and related costs, labor market trends, expected amounts of capital returned to shareholders, expected financial performance, matters related to Project Leap, expectations related to the pending acquisition of Astreya, and other forward-looking statements involving matters that are not historical facts. These statements are neither promises nor guarantees and are subject to a variety of risks and uncertainties, many of which are beyond our control, that could cause actual results to differ materially from those anticipated in these forward-looking statements. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Factors that could cause actual results to differ materially from those expressed or implied include: general economic conditions, the competitive and rapidly changing nature of the markets in which we operate, our ability to successfully leverage AI technologies and the impact these technologies may have on the demand for and terms of our services, the competitive market for talent and its impact on employee recruitment and retention, legal, reputational, and financial risks from cyberattacks, changes in the regulatory environment (including immigration, trade, and tax), and other factors discussed in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission and in other filings. Cognizant undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities laws.