#USA #share buyback #EPAM Systems #Newtown #Q3 2026

EPAM Systems Releases Third Quarter 2026 Results

On November 5, 2026, EPAM Systems, Inc., a notable leader in digital and AI transformation, announced its financial results for the third quarter ended September 30, 2026. The company reported impressive growth, with revenues rising to $1.426 billion, marking a 2.3% year-over-year increase. When adjusted for organic constant currency, the revenue growth stands at 2.5%, reflecting solid operational performance.

Operational Highlights

The report provided several key metrics reflecting the company's strong performance:

• - GAAP income from operations increased to $175.9 million, constituting 12.3% of revenues, up from 10.4% in the same quarter of the previous year.
• - Non-GAAP income from operations rose to $238.4 million, translating to 16.7% of revenues, an increase from 16.0% year-over-year.
• - The diluted earnings per share (EPS) on a GAAP basis reached $2.53, a notable 32.5% increase from $1.91 in the prior year’s quarter.
• - Non-GAAP diluted EPS saw a 14.0% jump, landing at $3.51 compared to $3.08.

This performance highlights EPAM's commitment to increasing margins and delivering enhanced value to its shareholders.

Strategic Capital Allocation

In addition to growth figures, EPAM has significantly expanded its capital allocation strategy. The company announced an increased share repurchase authorization of $1.5 billion, raising the total remaining authorization to $1.8 billion. Next week, EPAM intends to initiate a $500 million accelerated share repurchase program, showcasing its confidence in future growth and a commitment to returning capital to its shareholders. EPAM has pledged to return at least 50% of its free cash flows to shareholders annually from 2027 to 2029.

Future Outlook for 2026

For the remainder of 2026, EPAM anticipates a positive revenue growth trajectory. The company’s year-over-year revenue growth rate is now expected to be between 3.5% to 3.7%, with an organic constant currency growth rate prediction of 2.5% to 2.7%. The GAAP diluted EPS is projected to range from $8.41 to $8.49, while non-GAAP diluted EPS is estimated between $13.23 to $13.31. For the fourth quarter of 2026, EPAM expects revenues in the range of $1.405 billion to $1.420 billion, forecasting a year-over-year change ranging from (0.2)% to 0.9%.

Conclusion

Overall, EPAM Systems has demonstrated resilience and growth in a challenging economic landscape. With enhanced results, strategic share repurchases, and a forward-looking approach to revenue growth, EPAM continues to position itself as a leader in digital transformation while creating value for its stakeholders. The detailed results are set to be discussed in a conference call scheduled for November 5, 2026 at 8:00 AM ET, allowing for further analysis and insights into the company’s future direction.