Cognizant (CTSH) Soars 9% on Upcoming Dividends, $2-Billion Buyback Boost

Cognizant Technology Solutions Corp. (NASDAQ:CTSH) is one of the 10 Stocks Making Monster Moves.

Cognizant rallied for a third straight day on Monday, jumping 9.05 percent to close at $51.40 apiece, as investor sentiment was bolstered by twin initiatives to boost shareholder value through a combination of dividends and a $2 billion increase in its existing share buyback program.

On the same day, investors scrambled to load up on shares of Cognizant Technology Solutions Corp. (NASDAQ:CTSH), being the last day to qualify for $0.33 per share in dividends. Payments will be made on May 27, 2026.

The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels

Meanwhile, Cognizant Technology Solutions Corp. (NASDAQ:CTSH) also said that its board of directors has given the green light for a $2 billion increase in its authorized share repurchase program, which will bring the total to $3.45 billion.

Some $1 billion of the total amount is expected to be completed by the end of the second quarter.

“Our plan to increase the amount of share repurchases reflects our strong conviction in the long-term opportunity AI creates and our critical role in it as an AI builder,” Cognizant Technology Solutions Corp. (NASDAQ:CTSH) CEO Ravi Kumar said.

“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,” he noted.

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