Cerner Corp.'s board of directors approved a stock repurchase program on May 23. The board has authorized the repurchase of up to $500 million of its common stock.
The program does not have a time limit for completion, and the repurchase will be funded from working capital.
Based on the company's May 24 closing price, around 7.8 million shares could be repurchased.
"We believe Cerner is very well-positioned for long-term growth, and this program reflects our confidence in delivering this growth," said Marc Naughton, executive vice president and CFO of Cerner. "Given our strong balance sheet and expected strong cash flow, we are well positioned to continue investing in growth while also returning value to shareholders through share repurchases."
Cerner reported first quarter revenue of $1.26 billion, marking an 11 percent increase from $1.14 billion in the first quarter of 2016.