Jatin Dalal on Capital Allocation
From Cognizant Technology Solutions Corp ($CTSH) Q1 2026 Earnings Call · · Castify Earnings Call
“We still expect to return approximately 1.6 billion dollars of capital to shareholders including 1 billion dollars towards share repurchases and the remainder towards our regular dividend. We remain committed to acting in the best interest of our shareholders and will provide updates as appropriate regarding our evaluation of a potential primary offering and secondary listing in India.”
On , Jatin Dalal, Chief Financial Officer at Cognizant Technology Solutions Corp, spoke about Capital Allocation during Cognizant Technology Solutions Corp ($CTSH) Q1 2026 Earnings Call on Castify Earnings Call.
About Jatin Dalal
Jatin Dalal, Cognizant’s chief financial officer, said on the company’s first-quarter 2026 earnings call that the midpoint of the 2026 guidance “assumes a little bit of improvement in discretionary spending in the second half.” He described large deal bookings as “very healthy” and noted that growth was driven by new opportunities from existing and new customers. Dalal also announced Project Leap, a transformation program with expected costs of $230 million to $320 million, substantially all incurred in 2026. He stated that Cognizant is “evolving our commercial models towards fixed and outcome-based pricing” and that several clients are exploring “tokenized rate cards” that price work along a continuum from human-led discovery to autonomous agentic delivery. On the fourth-quarter 2025 call, Dalal said Cognizant expected to return approximately $1.6 billion of capital to shareholders in 2026, including about $1 billion in share repurchases. He also noted that the company was “evaluating a potential primary offering and secondary listing in India.” Earlier, on the third-quarter 2025 call, Dalal increased adjusted operating margin guidance to approximately 15.7%, representing 40 basis points of expansion, and reported a one-time non-cash income tax expense of $390 million related to a deferred tax asset write-off due to the July U.S. budget bill. On the second-quarter 2025 call, he cited changes in U.S. Medicaid policy as a factor expected to weigh on near-term discretionary demand from payers and providers.