Cognizant raises buyback to $3.45 billion, doubles 2026 target
Business
Cognizant just bumped up its stock buyback plan by another $2 billion, bringing the total to $3.45 billion.
The company also doubled its 2026 buyback target, aiming for $2 billion instead of $1 billion, with the additional $1 billion expected to be completed during the second quarter of 2026.
Cognizant CEO ties buyback to AI
CEO Ravi Kumar S says this move is all about backing their push into artificial intelligence, which he calls a "fundamental shift" for IT services.
He believes Cognizant's early bets on AI are setting them up for long-term success, and thinks the current stock price doesn't really show how much potential the company has because of these investments.