Cognizant Boosts Share Buyback by $1B, Raises 2026 Target to $2B
CTSH•Cognizant’s board approved a $2 billion increase to its stock repurchase authorization, bringing available buyback capacity to approximately $3.45 billion. The company raised its 2026 share repurchase target by $1 billion to $2 billion and plans to repurchase the additional amount in Q2 while drawing $1 billion from its credit facility for the Astreya acquisition.
1. Board Approves Additional Authorization
Cognizant’s board of directors authorized a $2 billion increase to its existing share repurchase program, elevating total buyback capacity to roughly $3.45 billion as of May 17, 2026.
2. 2026 Repurchase Target Raised by $1B
The company increased its 2026 share repurchase expectation by $1 billion, setting a new target of $2 billion, with plans to repurchase the incremental amount during the second quarter.
3. Funding Strategy and Acquisition Link
To support the expanded buyback, Cognizant will draw $1 billion from its revolving credit facility in connection with the anticipated closing of its Astreya acquisition, while preserving flexibility for strategic M&A.
4. Leadership Highlights Capital Allocation
CEO Ravi Kumar S. emphasized conviction in AI-driven growth as justification for the accelerated buyback, and CFO Jatin Dalal pointed to strong free cash flow and balance sheet strength as enablers of continued shareholder returns and investments.
