EPAM Enters Into $300 Million Accelerated Share Repurchase Agreement
MWN-AI** Summary
EPAM Systems, Inc. (NYSE: EPAM), a leader in digital and AI transformation, has announced an accelerated share repurchase (ASR) agreement with Morgan Stanley & Co. LLC, enabling the company to repurchase $300 million of its common stock. This strategic move is part of EPAM’s existing $1.0 billion share repurchase authorization, underscoring the management's confidence in the firm's long-term prospects.
Balazs Fejes, CEO and President of EPAM, highlighted that the accelerated repurchase program reflects the company's belief that its current market valuation does not accurately capture its inherent strength and future growth potential. He emphasized the company’s commitment to sustained growth driven by its robust engineering capabilities and leadership in AI-native solutions.
Under the agreement, EPAM will pay Morgan Stanley $300 million, initially receiving 1,703,336 shares, approximately valued at $240 million based on the closing price from March 4, 2026. The final share count to be repurchased will be determined by the volume-weighted average share price during the duration of the ASR, adjusted according to the agreement's terms. Upon completion of this ASR, EPAM will have approximately $452.5 million remaining in its share repurchase authorization.
EPAM Systems has earned recognition for its innovative capabilities and workplace culture, serving a diverse client base that includes Global 2000 companies and startups. The company draws on over three decades of experience in custom software and platform engineering to assist organizations in becoming AI-native enterprises.
While the announcement highlights EPAM’s strategic undertakings, the press release also cautions regarding forward-looking statements, emphasizing the inherent risks and uncertainties associated with economic and geopolitical conditions that could affect the company's performance and operations.
MWN-AI** Analysis
EPAM Systems, Inc.'s recent announcement regarding a $300 million accelerated share repurchase (ASR) agreement signifies a strategic move aimed at enhancing shareholder value and reflects management's confidence in the company's long-term prospects. This repurchase is part of EPAM's existing $1.0 billion share repurchase authorization, which highlights its commitment to returning capital to shareholders.
The immediate impact of the ASR has already begun, with EPAM repurchasing approximately 1.7 million shares based on the latest closing price. This action may indicate that the company believes its stock is undervalued, as stated by CEO Balazs Fejes, aligning with broader market trends where companies engage in buybacks when they perceive their share prices do not reflect intrinsic value.
From an investment perspective, EPAM's share repurchase signals several potential benefits. Reduced outstanding shares can enhance earnings per share (EPS), making the stock more attractive to investors. Moreover, buybacks can often lead to share price appreciation as demand for the stock increases. Investors should also note that the remaining $452.5 million available under the repurchase program may afford EPAM further flexibility to enhance shareholder returns if the market conditions are favorable.
However, potential investors should also remain cautious. While buybacks are typically viewed positively, they do reduce cash reserves that could be used for growth initiatives or to navigate uncertain economic conditions. Investors should consider the broader economic landscape and EPAM's operational performance, particularly in the evolving digital transformation and AI sectors.
In conclusion, EPAM's ASR initiative is an encouraging sign for current and prospective investors, but it is essential to approach investment decisions holistically, factoring in both potential rewards and associated risks within the current economic climate. Monitoring future earnings reports and market trends will be crucial to assessing the ongoing viability of this strategy.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
PR Newswire
NEWTOWN, Pa., March 5, 2026 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital and AI transformation company, today announced that it has entered into an accelerated share repurchase agreement (ASR) with Morgan Stanley & Co. LLC to repurchase an aggregate of $300 million of its common stock. The ASR was authorized under the Company's existing $1.0 billion share repurchase authorization.
"Our accelerated repurchase program demonstrates our confidence in EPAM's long-term outlook and our ability to generate sustained growth through our robust engineering foundation and AI-native market leadership," said Balazs Fejes, CEO & President of EPAM. "We believe our current valuation does not fully reflect the strength and future potential of our business and view this action as a value-enhancing use of capital."
Under the terms of the ASR, the Company will make a payment of $300 million to Morgan Stanley and receive from Morgan Stanley an initial share delivery of 1,703,336 shares, or $240 million worth based on the closing price on March 4, 2026. The final number of shares of the Company's common stock to be repurchased under the ASR will be determined on completion of the ASR no later than the second quarter of 2026 and will generally be based on the volume-weighted average share price of the Company's common stock during the term of the ASR, less a discount, and subject to adjustments pursuant to the terms and conditions of the ASR.
After giving effect to this ASR, the Company has $452.5 million of remaining availability under its current share repurchase authorization.
About EPAM Systems
EPAM (NYSE: EPAM) is a global leader in AI transformation engineering and integrated consulting, serving Forbes Global 2000 companies and ambitious startups. With over thirty years of expertise in custom software, product and platform engineering, EPAM empowers organizations to become AI-native enterprises, driving measurable value from innovation and digital investments. Recognized by industry benchmarks and leading analysts as a leader in AI, EPAM delivers globally while engaging locally, making the future real for clients, partners and employees.
We are proud to be recognized by Forbes, Glassdoor, Newsweek, Time Magazine, Great Place to Work and kununu as a Most Loved Workplace around the world.
Learn more at www.epam.com and follow us on LinkedIn.
Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.
SOURCE EPAM Systems, Inc.
FAQ**
How does EPAM Systems Inc. EPAM's $300 million accelerated share repurchase agreement reflect its confidence in long-term growth amid current market conditions?
What specific factors led EPAM Systems Inc. EPAM’s management to conclude that its current valuation does not fully represent the company's strength and future potential?
Can you elaborate on how the volume-weighted average share price will be determined in the accelerated share repurchase agreement from EPAM Systems Inc. EPAM, particularly regarding market fluctuations?
With the $300 million repurchase, how does EPAM Systems Inc. EPAM plan to leverage its remaining $452.5 million under the share repurchase authorization to enhance shareholder value moving forward?
**MWN-AI FAQ is based on asking OpenAI questions about EPAM Systems Inc. (NYSE: EPAM).
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