Cognizant ups 2026 share buyback target by $1bn

BENGALURU: Cognizant has said its board approved a $2 billion increase to its existing share repurchase programme and raised its 2026 share buyback target to $2 billion, up from the earlier target of $1 billion. The additional $1 billion in buybacks is expected to be completed during the Sept quarter of 2026.The announcement pushed Cognizant’s stock up 6% in early Nasdaq trading. However, the shares have remained under pressure over a longer period, with the stock down nearly 39% over the past year. TOI reported on Monday that Cognizant’s market capitalisation stood at about $22.3 billion as of Friday, down 22% over the past month and 44% over the past year, bringing it close to the lower end of its FY26 revenue guidance range of $22.1 billion to $22.6 billion.

“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,” CEO Ravi Kumar S said. “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 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.”Its CFO Jatin Dalal said the company was using its strong balance sheet and cash position to enhance shareholder returns while continuing to invest in growth opportunities. “A strong balance sheet and robust free cash flow give us flexibility to opportunistically accelerate return of capital to shareholders while we continue to invest for growth, including through strategic M&A,” he said.