EPAM Systems Announces $300 Million Accelerated Share Repurchase Deal with Morgan Stanley

EPAM Systems Announces $300 Million Accelerated Share Repurchase Agreement

On March 5, 2026, EPAM Systems, Inc. (NYSE: EPAM) revealed that it has entered into an accelerated share repurchase (ASR) agreement with Morgan Stanley & Co. LLC to buy back a total of $300 million of its common stock. This strategic move is part of the company's ongoing efforts to enhance shareholder value and underscores its confidence in future growth potential.

Background of EPAM Systems

Founded over thirty years ago, EPAM Systems has established itself as a global leader in digital transformation and AI engineering. The company specializes in helping organizations elevate their capabilities through innovative technologies and the development of AI-native enterprises. EPAM has served a diverse array of clients, including Fortune Global 2000 companies and innovative startups, driving significant advancements in various sectors with its expert knowledge in software engineering and consulting.

As of now, EPAM has authorized up to $1 billion for share repurchase, highlighting its commitment to returning value to shareholders. With the ASR agreement, the company will pay the initial sum of $300 million to Morgan Stanley, who will deliver approximately 1.7 million shares of stock based on closing prices as of March 4, 2026. This approach allows EPAM to efficiently manage its capital while optimizing its stock's market performance.

Insights from Leadership

In comments regarding this ASR agreement, Balazs Fejes, CEO and President of EPAM, stated, "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." Fejes emphasized that the action is an astute use of capital, particularly as the current market valuation might not fully capture the company's strength and growth prospects.

The final number of shares to be bought back will be determined after the completion of the ASR, expected no later than the second quarter of 2026. The total repurchased stock will be contingent on the stock's volume-weighted average price throughout the ASR period, subject to certain conditions that are common in such agreements.

Future Outlook

Interest in EPAM's shares remains robust, with $452.5 million still available under the company's share repurchase plan after executing this ASR. This residual availability positions EPAM to continue enhancing returns for shareholders while navigating the competitive landscape of digital transformation and AI technologies.

In an era marked by rapid technological advancements and shifts in business paradigms, EPAM Systems stands at the forefront, positioning itself as a critical partner for organizations aiming for sustainable growth and innovative excellence. The accelerated share repurchase agreement not only reinforces this position but also reflects the company's strategic foresight in capital allocation.

Conclusion

As EPAM Systems continues to forge ahead in the digital and AI space, its recent ASR agreement highlights a commitment to shareholder value and long-term growth potential. With a solid foundation in integrated consulting and engineering, the company is poised to emerge as a frontrunner in the transformation journey of businesses across various industries.

To learn more about EPAM Systems and their offerings, visit their official website or follow them on LinkedIn for the latest updates and insights.