EPAM Systems Inc. Launches $300 Million Accelerated Share Repurchase Agreement
1. Strategic Move Reflects Confidence in Long-Term Growth
On March 5, 2026, EPAM Systems, Inc. (NYSE: EPAM), a prominent player in digital and AI transformation services, announced the initiation of a $300 million accelerated share repurchase agreement (ASR) with Morgan Stanley & Co. LLC. This strategic decision underscores the company's commitment to enhancing shareholder value while solidifying its long-term growth trajectory.
Details of the Accelerated Share Repurchase Agreement
The ASR is part of EPAM’s ongoing $1.0 billion share repurchase authorization, which reflects the company's robust financial standing and proactive approach to capital management. Under the terms of the ASR, EPAM will pay Morgan Stanley $300 million upfront and will receive an initial delivery of 1,703,336 shares, valued at approximately $240 million based on the closing price as of March 4, 2026.
The total number of shares repurchased will be finalized by the conclusion of the ASR, anticipated by the second quarter of 2026. The final count will be determined based on the volume-weighted average share price of EPAM's common stock throughout the duration of the ASR, subject to certain adjustments and a discount.
Leadership’s Perspective on Value Enhancement
Balazs Fejes, CEO and President of EPAM, expressed confidence in the company's future during the announcement. “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,” he stated. Fejes further emphasized that the current market valuation does not fully capture the strength and future potential of EPAM, positioning the share repurchase as a strategic move to enhance shareholder value.
Remaining Share Repurchase Authorization
Following the execution of this ASR, EPAM will have approximately $452.5 million remaining under its existing share repurchase authorization. This ongoing commitment to repurchasing shares indicates a strong belief in the company's underlying value and growth potential in the competitive landscape of digital transformation.
2. About EPAM Systems
EPAM Systems has established itself as a leader in AI transformation engineering and integrated consulting, catering to Forbes Global 2000 companies and startups alike. With over three decades of experience in software development, product engineering, and platform engineering, EPAM empowers organizations to transition into AI-native enterprises, thus generating measurable value from their digital investments. The company has garnered accolades from various industry benchmarks and is recognized as a top workplace globally.
Conclusion
The $300 million accelerated share repurchase agreement marks a significant milestone for EPAM Systems, reinforcing its commitment to enhancing shareholder value while navigating the complexities of the digital transformation landscape. As the company continues to innovate and lead in AI-driven solutions, stakeholders will be closely watching how this strategic move impacts EPAM's financial health and market positioning in the coming quarters.
