EPAM Systems has been actively repurchasing its shares, with a notable $300 million accelerated share repurchase (ASR) agreement announced on March 5, 2026, with Morgan Stanley & Co. LLC. This ASR is part of an existing $1.0 billion authorization, and the company initially received 1,703,336 shares valued at approximately $240 million. The final number of shares for this ASR will be determined by the second quarter of 2026 based on the volume-weighted average share price. After this ASR, $452.5 million remains available under the repurchase authorization. CEO Balazs Fejes stated that the buyback reflects confidence in EPAM's long-term outlook and its AI-native market leadership.
In addition to the ASR, EPAM completed a $632.49 million buyback program in the second quarter of 2026, retiring 3,801,717 shares, or 7.01% of its outstanding stock. This program was announced in October 2025. Earlier, in the first quarter of 2026, the company also completed a $547.49 million buyback of 2,997,000 shares. These buybacks are seen by management as a value-enhancing use of capital, given their belief that EPAM's current valuation does not fully reflect its business strength and future potential.
EPAM's capital return strategy is intertwined with its aggressive push into AI. The company reported first-quarter 2026 revenue of $1,400.06 million and second-quarter 2026 revenues of $1,414.77 million. It has entered into a multi-year partnership with Anthropic and is building a dedicated practice of over 10,000 Claude-certified architects, with 1,300 already certified and 5,000 targeted by the end of Q3 2026. This focus on AI-driven delivery is a key lever for supporting a recovery narrative for investors, despite concerns about wage inflation and competition. Some analysts are optimistic, with a median price target of $151.0 from 11 analysts and multiple "Buy" or "Overweight" ratings, while others are more cautious about potential margin pressures and the impact of ESOP-related share registrations on diluted EPS.
