EPAM Systems Unveils $1 Billion Stock Repurchase Initiative to Boost Shareholder Value

EPAM Announces a $1 Billion Stock Repurchase Program

In a significant move to bolster its stock price and demonstrate confidence in future growth, EPAM Systems, Inc. (NYSE: EPAM), a leading player in the digital transformation and product engineering sector, has revealed a new stock repurchase initiative. This program allows for the buyback of up to $1 billion of the company’s outstanding common stock over a period of 24 months. This announcement comes at a time when EPAM is optimizing its operations and focusing on delivering value to its shareholders.

The Details of the Program

The Board of Directors at EPAM has authorized this new repurchase plan, which reflects the company's strategic approach towards maintaining a robust balance sheet while also returning cash to shareholders. The stock buyback could be executed through various means, including open market purchases, privately negotiated transactions, or structured trading plans that comply with existing securities regulations. Factors influencing the timing and amount of repurchases will include overall market conditions, prevailing stock prices, and corporate governance requirements.

CEO Balazs Fejes commented on the initiative, stating, "Our Board and management team are confident in our ability to deliver higher levels of future growth and shareholder value, underpinned by our recognized core engineering expertise and AI-native market position." This statement aligns with EPAM's broader strategy aimed at enhancing client relationships through innovative and reliable technologies.

Growth and Financial Stability

EPAM has been experiencing consistent growth, characterized by three quarters of improving organic constant currency revenue growth. CFO Jason Peterson noted the organization's strong financial health, attributing it to efficient cash flow generation and a well-managed balance sheet. This stock repurchase program is seen as a mechanism to leverage favorable market dynamics, while simultaneously committing resources towards ongoing enhancements of their business operations and investment in AI technologies.

Since its inception in 1993, EPAM has evolved into a global front-runner in digital engineering and transformation services, implementing advanced software engineering techniques to assist enterprises and startups in navigating digital change. Their services extend across multiple sectors, providing tailored technology solutions to address complex challenges faced by clients.

Future Perspectives

With the integration of AI and innovative tech-driven frameworks, EPAM estimates that these investments will accelerate digital innovation for its clients and strengthen their competitive edge in various industries. Special initiatives like EPAM AI/RUN™ reflect the company's commitment to merging sophisticated AI capabilities with business strategies customized for client needs. EPAM emphasizes local engagement with experts who can bring transformative solutions to life, ensuring that their operations resonate positively across all regions they serve.

The company’s reputation has been validated through its inclusion in the S&P 500 and the Forbes Global 2000 list, alongside commendations from Glassdoor and Newsweek as one of the Most Loved Workplaces. EPAM prides itself on its multidisciplinary teams that cater to clients across six continents, affirming its standing as a top 15 company in Information Technology Services within the Fortune 1000.

In the face of global uncertainties, including geopolitical tensions and economic fluctuations, the repurchase program reflects EPAM’s proactivity in managing market challenges and adapting strategies that foster long-term value for shareholders.

For more information about EPAM's ongoing initiatives and investment strategies, you can visit their official website at www.epam.com.