EPAM Raises Share Buyback Authorization to $1.8 Billion Through 2029
Key Facts
EPAM Systems said on November 5 that its board had ended the previous repurchase program and replaced it with a new authorization allowing it to buy up to $1.8 billion of common stock through December 31, 2029. The board increased the authorization by $1.5 billion, bringing the remaining authorized balance to $1.8 billion. The company said it expects to enter into a $500 million accelerated share repurchase agreement during the week of November 9. The transaction will be funded with available cash and borrowings under its existing credit facility. The announcement places share repurchases within a broader plan to return capital to shareholders over the coming years.
EPAM set a near-term date for the accelerated agreement, but the overall authorization runs through the end of 2029. The company also committed to returning at least 50% of its free cash flow to shareholders annually during 2027–2029. The commitment gives the capital-return policy a three-year time frame alongside the authorized repurchase amount. The company said the repurchase program is discretionary and may be suspended or terminated at any time. It is not required to buy a specific number of shares, so the authorization ceiling does not mean the company will use it in full.
The announcement coincided with results for the third quarter ended September 30, when revenue was $1.426 billion, up 2.3% year over year. Revenue increased 2.5% on an organic constant-currency basis, while GAAP operating income margin was 12.3%, compared with 10.4% a year earlier. Non-GAAP operating income margin also rose to 16.7% from 16.0%. Non-GAAP diluted earnings per share were $3.51, up 14% from $3.08 in the third quarter of 2025. Chief Executive Officer Balazs Fejes said the company delivered "a strong quarter, with better-than-expected results, continued margin expansion, AI-driven momentum, and progress in our transformation strategy."
EPAM had approximately $969.9 million in cash, cash equivalents and restricted cash on September 30, 2026. That balance was 25.5% below $1.301 billion at the end of 2025, a decline of $331.4 million over the period. The company said the $500 million accelerated repurchase would rely on available cash and borrowings under its existing credit facility. That clarification applies to the accelerated transaction; the company did not specify funding for the entire program in its statement. The company said it had launched new generative AI services, "Frontier AI," as part of its offering, alongside the AI momentum cited by the CEO.
EPAM shares closed at $165.70 on November 5, up 20.63% during the session. The stock had closed at $137.36 on November 4, according to published price data. The session's gain coincided with the results announcement, the buyback authorization and the commitment to return cash flows to shareholders. The company's statement did not identify a separate effect for each of these elements on the share price move. Closing prices provide a picture of the stock's trading on the announcement date and the preceding day.
For the fourth quarter of 2026, EPAM expects revenue of between $1.405 billion and $1.420 billion, reflecting a year-over-year change ranging from a 0.2% decline to 0.9% growth. It also expects GAAP diluted earnings per share of between $2.43 and $2.51 for the quarter, and between $8.41 and $8.49 for fiscal 2026. The outlook follows annual revenue growth in the third quarter, while operating margins and earnings per share improved compared with the same period a year earlier. Under the schedule announced by the company, the accelerated repurchase remains tied to the week of November 9. The annual commitment to return at least half of free cash flow begins for the 2027 to 2029 period.