IT major Cognizant has announced that its Board of Directors has authorised an increase of $2 billion to its existing share repurchase programme, taking the company’s total share repurchase authorisation now stands at $3.45 billion.
Cognizant has also doubled its share repurchase target for 2026 to $2 billion, an increase of $1 billion over its prior expectation.
The additional $1 billion in share repurchases is expected to be completed during the second quarter of (calendar year) 2026, the company said in a statement.
“Our plan to increase the amount of share repurchase 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,” said Ravi Kumar S, CEO, Cognizant.