COGNIZANT TECHNOLOGY SOLUTIONS CORP

Cognizant Technology Solutions Corporation announced the preliminary approval of a $5.5 million settlement in a stockholder derivative action. The lawsuit, "Viswanatha Palempalli v. Michael Pastalos-Fox, et al.", alleged breach of fiduciary duty, waste of corporate assets, and FCPA violations. The settlement funds will be paid to Cognizant by its directors and officers insurance carriers, with a final approval hearing set for September 14, 2026.

Cognizant Technology Solutions Corporation announced its intent to borrow $1 billion under its existing revolving credit facility. The company provided notice to lenders on May 15, 2026, with the funding scheduled for May 20, 2026. This borrowing is pursuant to the Credit Agreement originally dated October 6, 2022, and amended on April 18, 2024.

Cognizant's Board of Directors approved a $2 billion increase to its existing stock repurchase program, bringing the total remaining authorization to approximately $3.45 billion as of May 17, 2026. The company also raised its 2026 share repurchase target by $1 billion to $2 billion, with the additional $1 billion expected to be completed in the second quarter of 2026. To fund this, Cognizant will draw $1 billion from its revolving credit facility, considering the upcoming Astreya acquisition. CEO Ravi Kumar S will also participate in a J.P. Morgan conference fireside chat today.

Cognizant Technology Solutions Corp (CTSH) acquired 3Cloud, a Microsoft Azure services provider and AI enablement solutions leader, for $728 million on January 1, 2026. For the first quarter of 2026, the company reported revenues of $5.41 billion, a 5.8% increase year-over-year, with diluted EPS rising to $1.39. Net income remained stable at $662 million. CTSH also declared a quarterly dividend of $0.33 per share and repurchased $448 million in common stock.

Cognizant reported strong first quarter 2026 results with revenue of $5.4 billion, up 5.8% year-over-year, and adjusted EPS of $1.40, a 13.8% increase. The company also announced "Project Leap," a restructuring program expected to generate $200M-$300M in-year savings and incur $230M-$320M in costs. This initiative led to an increased full-year 2026 adjusted operating margin guidance, alongside robust bookings growth and strategic AI partnerships.