EPAM Enters Into $300 Million Accelerated Share Repurchase Agreement
Rhea-AI Summary
EPAM (NYSE: EPAM) entered an $300 million accelerated share repurchase (ASR) with Morgan Stanley on March 5, 2026, funded from its existing $1.0 billion repurchase authorization. The company received an initial delivery of 1,703,336 shares valued at $240 million based on the March 4, 2026 closing price.
The final shares repurchased will be settled no later than Q2 2026 and will be based on the VWAP during the ASR term, less a discount and subject to contractual adjustments. After this ASR, EPAM reports $452.5 million of remaining buyback authorization.
Positive
- Commits $300 million to share repurchase, signaling capital return focus
- Initial delivery of 1,703,336 shares reduces outstanding float immediately
- Leaves $452.5 million available under the $1.0 billion authorization for future repurchases
Negative
- ASR payment uses $300 million of cash that could fund other corporate uses
- Final share count unsettled until completion, creating short-term EPS and share-count uncertainty
Key Figures
Market Reality Check
Peers on Argus
EPAM was nearly flat pre-news (+0.09%). Peers showed mixed moves: KD +2.34%, G +1.34%, EXLS +1.58%, GDS +0.87%, while PSN -0.89%. No peers appeared in the momentum scanner and there were no same-day peer headlines, indicating this ASR is a stock-specific catalyst rather than a sector-wide move.
Previous Buybacks Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 21 | New buyback program | Positive | +7.0% | Announced new <b>$1B</b> 24‑month share repurchase program citing strong cash generation. |
Prior buyback news on Oct 21, 2025 saw a positive +6.95% 24-hour move, suggesting historically supportive reactions to repurchase announcements.
EPAM’s previous tagged buyback event on Oct 21, 2025 introduced a new $1 billion share repurchase program with a 24-month term and flexible execution methods. That announcement followed improving organic revenue growth and strong free cash flow, and the stock gained 6.95% over the next 24 hours. Today’s $300 million accelerated share repurchase utilizes that same authorization, leaving $452.5 million available, and represents a concrete step in executing the capital return plan.
Historical Comparison
Past buyback news on Oct 21, 2025 with a $1B authorization saw an average +6.95% move; today’s ASR executes a portion of that same program.
The company moved from authorizing a $1B, 24‑month repurchase program in 2025 to executing a specific $300M accelerated share repurchase under that authorization in 2026.
Market Pulse Summary
This announcement details a fixed-dollar $300 million accelerated share repurchase under EPAM’s existing $1.0 billion authorization, with an initial 1,703,336 shares delivered and $452.5 million capacity remaining. Historically, a 2025 buyback authorization coincided with a +6.95% move, underscoring how capital returns have mattered to this stock. Investors may monitor final share count, ASR completion by Q2 2026, and how these actions interact with earnings trends and AI-driven growth plans.
Key Terms
AI-generated analysis. Not financial advice.
"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
After giving effect to this ASR, the Company has
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
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SOURCE EPAM Systems, Inc.
FAQ
What did EPAM (EPAM) announce about its $300 million ASR on March 5, 2026?
How does the $300 million ASR affect EPAM's remaining buyback capacity (EPAM)?
When will the final number of shares repurchased in the EPAM ASR be determined?
What immediate share impact did EPAM report from the ASR payment on March 5, 2026?
Why did EPAM say it initiated the $300 million ASR (EPAM)?
