The US-based Cognizant Technology Solutions’ board has approved a $2 billion increase to its existing share repurchase authorisation. With this increase, as of March 24, 2025, there is approximately $3.1 billion remaining under the share repurchase authorisation.
For 2025, the company in a release said that it is increasing its share repurchase expectation by $500 million to $1.1 billion. The company reiterates its long-term capital allocation framework including the flexibility to pursue strategic acquisitions.
Cognizant’s CEO S Ravi Kumar said, “Given our confidence in our strategy and future prospects, we are pleased to announce that the Board approved a $2 billion increase to our existing share repurchase authorisation, and we now expect to repurchase $1.1 billion of shares in 2025, an increase of $500 million over our prior expectation.”
At the Investor Day on Tuesday (US time), Cognizant’s executive leadership team will outline the company’s progress against its strategic priorities and unveil its long-term growth strategy. Participants will also have an opportunity to hear from top clients and partners about Cognizant’s differentiated capabilities supporting their AI journeys and experience demonstrations of several of Cognizant’s AI-enabled platforms, according to a release.
AI technology transformation
Kumar said in the release, “Cognizant is well positioned to lead in the next wave of AI-driven technology transformation. The company has achieved significant progress over the past two years, accelerating growth, becoming an employer of choice, and simplifying operations.”
“We are now poised to build on this momentum and return to the Winner’s Circle. We are confident that Cognizant’s differentiated capabilities and strategic investments in AI and embedded engineering will enhance our ability to capture outsized growth in the expanding IT services market. Investor Day is an important opportunity to share our vision for the future, and how we plan to create long-term shareholder value,” he said.
