Cognizant boosts share buyback plan by $2 billion

Reuters

Tue, Mar 25, 2025, 6:56 AM 1 min read

(Reuters) - Cognizant Technology said connected Tuesday its committee has approved a $2 cardinal summation to the IT consulting company's existent stock repurchase plan, arsenic it sharpens absorption connected bolstering shareholder returns.

With this, the full magnitude authorized nether the programme is $3.1 billion. The institution said it expects to bargain backmost shares worthy $1.1 cardinal this year, an summation of $500 cardinal implicit its anterior expectation.

Shares of Cognizant, which is scheduled to big its capitalist time aboriginal connected Tuesday, roseate 1.7% successful aboriginal trading. It is expected to stock its semipermanent maturation plans and initiatives to amended its artificial-intelligence offerings.

The institution has been grappling with choppy IT services request arsenic economical uncertainties and precocious involvement rates person pressured endeavor budgets, causing clients to rein successful spending. Last month, Cognizant forecast its yearly gross beneath analysts' estimate.

It is besides facing activistic capitalist engagement from Mantle Ridge, which has been successful discussions with the institution since mid-2024.

The Wall Street Journal reported earlier this period that Mantle Ridge has built a involvement worthy much than $1 cardinal successful Cognizant and has been privately engaging with the institution astir its advancement connected boosting its stock price.

(Reporting by Priyanka.G successful Bengaluru; Editing by Shilpi Majumdar)