EPAM Systems Enters $300 Million Accelerated Share Repurchase Agreement with Morgan Stanley
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy EPAM?
Source: seekingalpha
- Repurchase Agreement: EPAM Systems has entered into an accelerated share repurchase agreement with Morgan Stanley to repurchase an aggregate of $300 million in common stock, reflecting the company's confidence in its stock value and aiming to enhance shareholder returns.
- Authorization Context: This repurchase is conducted under the company's existing $1 billion share repurchase authorization, indicating a proactive strategy in capital management to leverage market opportunities and increase shareholder value.
- Initial Share Delivery: Under the terms of the agreement, EPAM will pay Morgan Stanley $300 million and receive an initial delivery of 1,703,336 shares, valued at $240 million based on the closing price on March 4, 2026, providing liquidity support for the company.
- Future Revenue Outlook: EPAM projects $600 million in AI-native revenues for 2026, reflecting accelerated client demand and indicating the company's proactive positioning in technology innovation and market needs.
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Analyst Views on EPAM
Wall Street analysts forecast EPAM stock price to rise
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 145.870
Low
170.00
Averages
214.70
High
246.00
Current: 145.870
Low
170.00
Averages
214.70
High
246.00
About EPAM
EPAM Systems, Inc. is a global provider of digital engineering, cloud and AI-enabled transformation services, and is a business and experience consulting partner for global enterprises and startups. The Company addresses its clients’ transformation challenges by fusing EPAM Continuum’s integrated strategy, experience and technology consulting. Through platforms like EPAM AI/RUN and initiatives like DIALX Lab, the Company integrates advanced AI technologies into tailored business strategies, driving industry impact and fostering continuous innovation. Its strategy services include optimizing for growth, talent enablement, mergers & acquisitions, project to product, generative AI advisory, and transformative research & insights. Its engineering services include platform & product development, agile ways of working, quality engineering, open source, and metaverse. It serves various industries, including financial services; telecom, media & entertainment, and life sciences & healthcare.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
EPAM Named Top IT Vendor in Netherlands for Fourth Consecutive Year
- Recognition of Excellence: EPAM has been named one of the top three IT vendors in the Netherlands by Whitelane Research for the fourth consecutive year, achieving an 88% satisfaction rate in application services and 87% overall satisfaction, indicating strong client trust and satisfaction in a competitive market.
- Positive Client Feedback: Over 350 participants evaluated nearly 800 IT outsourcing relationships, with EPAM receiving exceptional performer rankings in application services and overall satisfaction, reflecting its critical role in digital transformation and solidifying its position as a trusted partner.
- Driving Technological Transformation: EPAM is committed to delivering advanced AI capabilities, secure cloud solutions, and modern engineering practices that help clients scale efficiently and adopt emerging technologies confidently, thereby driving measurable business outcomes to meet urgent market demands for digital transformation.
- Market Leadership Position: This recognition not only strengthens EPAM's market position in the Netherlands but also reinforces its performance across other European markets, showcasing the company's influence and potential for sustained growth on a global scale.
See More
EPAM Recognized as One of the Best IT Service Providers in the Netherlands for Four Consecutive Years
- Exceptional Customer Satisfaction: EPAM achieved an 88% score for application services and 87% for overall customer satisfaction in the 2026 Dutch IT Sourcing Study, demonstrating its strong position as a reliable partner in a competitive market.
- Sustained Industry Recognition: This honor marks EPAM's fourth consecutive year of recognition, reflecting its leadership in digital transformation, particularly in the implementation of AI and cloud solutions.
- Expanded Market Influence: EPAM excelled in evaluations of nearly 800 IT sourcing relationships across over 350 IT spending organizations, further solidifying its influence in European markets, especially in Germany, Switzerland, and the UK.
- Strategic Investment and Development: EPAM is committed to delivering advanced AI capabilities and modern engineering practices to help clients achieve measurable business outcomes, thereby driving its continued growth in global markets.
See More
EPAM Named Top IT Vendor in Netherlands for Fourth Consecutive Year
- Recognition of Excellence: EPAM achieved an 88% rating in application services and a 87% overall satisfaction score in the 2026 Dutch IT Sourcing Study, being named a top IT vendor for the fourth consecutive year, which underscores its leadership position in a highly competitive market.
- Customer Satisfaction Improvement: Among 43 IT service providers, EPAM received high scores of 88% in service delivery quality and 84% in account management quality, indicating ongoing enhancements in customer service and management that further solidify client trust.
- Support for Digital Transformation: The VP of EPAM noted that as organizations accelerate digital transformation, they increasingly rely on EPAM's advanced AI capabilities and secure cloud solutions, which not only enhance the company's market competitiveness but also create measurable business outcomes for clients.
- Market Expansion Potential: EPAM's continued strong performance across various European markets, particularly in Germany, Switzerland, and the Nordics, demonstrates its robust influence and market expansion potential globally, further driving the company's long-term growth strategy.
See More
Pomerantz LLP Investigates Claims on Behalf of EPAM Systems Investors
- Securities Fraud Investigation: Pomerantz LLP is investigating whether EPAM Systems and its executives have engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and potentially initiate a class action lawsuit.
- Declining Financial Performance: On February 19, 2026, EPAM reported its financial results for Q4 and full year 2025, with the CFO acknowledging a revenue decline from its largest NEORIS customer, indicating a business ramp-down between Q4 and Q1.
- Significant Stock Reaction: Following the earnings report, EPAM's stock price fell by $9.20, or 6.61%, over the next two trading sessions, closing at $129.96 per share, reflecting market concerns about the company's outlook.
- Legal Firm Background: Pomerantz LLP is a prominent firm in securities and antitrust class litigation, founded over 85 years ago, dedicated to fighting for the rights of victims of securities fraud and corporate misconduct, having recovered multimillion-dollar damages for class members historically.
See More
Analysts Assure That AI Concerns Are Impacting IT Services Firms Like Accenture, But There's No Need for Alarm.
Impact on IT Service Firms: The past year has been challenging for IT service firms, particularly Accenture, which has seen a significant decline in its stock value.
Stock Performance: Accenture's stock has dropped 45% from its February 2025 levels, raising concerns among investors.
Concerns Over AI Tools: Investors are worried that advancements in artificial intelligence tools may lead to reduced demand for Accenture's services.
Potential Client Behavior Changes: There is a fear that clients might either pay less for services or eliminate the need for consulting services altogether due to AI capabilities.
See More
EPAM Systems Enters $300 Million Accelerated Share Repurchase Agreement with Morgan Stanley
- Repurchase Agreement: EPAM Systems has entered into an accelerated share repurchase agreement with Morgan Stanley to repurchase an aggregate of $300 million in common stock, reflecting the company's confidence in its stock value and aiming to enhance shareholder returns.
- Authorization Context: This repurchase is conducted under the company's existing $1 billion share repurchase authorization, indicating a proactive strategy in capital management to leverage market opportunities and increase shareholder value.
- Initial Share Delivery: Under the terms of the agreement, EPAM will pay Morgan Stanley $300 million and receive an initial delivery of 1,703,336 shares, valued at $240 million based on the closing price on March 4, 2026, providing liquidity support for the company.
- Future Revenue Outlook: EPAM projects $600 million in AI-native revenues for 2026, reflecting accelerated client demand and indicating the company's proactive positioning in technology innovation and market needs.
See More
EPAM Named Top IT Vendor in Netherlands for Fourth Consecutive Year
- Recognition of Excellence: EPAM has been named one of the top three IT vendors in the Netherlands by Whitelane Research for the fourth consecutive year, achieving an 88% satisfaction rate in application services and 87% overall satisfaction, indicating strong client trust and satisfaction in a competitive market.
- Positive Client Feedback: Over 350 participants evaluated nearly 800 IT outsourcing relationships, with EPAM receiving exceptional performer rankings in application services and overall satisfaction, reflecting its critical role in digital transformation and solidifying its position as a trusted partner.
- Driving Technological Transformation: EPAM is committed to delivering advanced AI capabilities, secure cloud solutions, and modern engineering practices that help clients scale efficiently and adopt emerging technologies confidently, thereby driving measurable business outcomes to meet urgent market demands for digital transformation.
- Market Leadership Position: This recognition not only strengthens EPAM's market position in the Netherlands but also reinforces its performance across other European markets, showcasing the company's influence and potential for sustained growth on a global scale.
See More
EPAM Recognized as One of the Best IT Service Providers in the Netherlands for Four Consecutive Years
- Exceptional Customer Satisfaction: EPAM achieved an 88% score for application services and 87% for overall customer satisfaction in the 2026 Dutch IT Sourcing Study, demonstrating its strong position as a reliable partner in a competitive market.
- Sustained Industry Recognition: This honor marks EPAM's fourth consecutive year of recognition, reflecting its leadership in digital transformation, particularly in the implementation of AI and cloud solutions.
- Expanded Market Influence: EPAM excelled in evaluations of nearly 800 IT sourcing relationships across over 350 IT spending organizations, further solidifying its influence in European markets, especially in Germany, Switzerland, and the UK.
- Strategic Investment and Development: EPAM is committed to delivering advanced AI capabilities and modern engineering practices to help clients achieve measurable business outcomes, thereby driving its continued growth in global markets.
See More
EPAM Named Top IT Vendor in Netherlands for Fourth Consecutive Year
- Recognition of Excellence: EPAM achieved an 88% rating in application services and a 87% overall satisfaction score in the 2026 Dutch IT Sourcing Study, being named a top IT vendor for the fourth consecutive year, which underscores its leadership position in a highly competitive market.
- Customer Satisfaction Improvement: Among 43 IT service providers, EPAM received high scores of 88% in service delivery quality and 84% in account management quality, indicating ongoing enhancements in customer service and management that further solidify client trust.
- Support for Digital Transformation: The VP of EPAM noted that as organizations accelerate digital transformation, they increasingly rely on EPAM's advanced AI capabilities and secure cloud solutions, which not only enhance the company's market competitiveness but also create measurable business outcomes for clients.
- Market Expansion Potential: EPAM's continued strong performance across various European markets, particularly in Germany, Switzerland, and the Nordics, demonstrates its robust influence and market expansion potential globally, further driving the company's long-term growth strategy.
See More
Pomerantz LLP Investigates Claims on Behalf of EPAM Systems Investors
- Securities Fraud Investigation: Pomerantz LLP is investigating whether EPAM Systems and its executives have engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and potentially initiate a class action lawsuit.
- Declining Financial Performance: On February 19, 2026, EPAM reported its financial results for Q4 and full year 2025, with the CFO acknowledging a revenue decline from its largest NEORIS customer, indicating a business ramp-down between Q4 and Q1.
- Significant Stock Reaction: Following the earnings report, EPAM's stock price fell by $9.20, or 6.61%, over the next two trading sessions, closing at $129.96 per share, reflecting market concerns about the company's outlook.
- Legal Firm Background: Pomerantz LLP is a prominent firm in securities and antitrust class litigation, founded over 85 years ago, dedicated to fighting for the rights of victims of securities fraud and corporate misconduct, having recovered multimillion-dollar damages for class members historically.
See More
Analysts Assure That AI Concerns Are Impacting IT Services Firms Like Accenture, But There's No Need for Alarm.
Impact on IT Service Firms: The past year has been challenging for IT service firms, particularly Accenture, which has seen a significant decline in its stock value.
Stock Performance: Accenture's stock has dropped 45% from its February 2025 levels, raising concerns among investors.
Concerns Over AI Tools: Investors are worried that advancements in artificial intelligence tools may lead to reduced demand for Accenture's services.
Potential Client Behavior Changes: There is a fear that clients might either pay less for services or eliminate the need for consulting services altogether due to AI capabilities.
See More
EPAM Systems Enters $300 Million Accelerated Share Repurchase Agreement with Morgan Stanley
- Repurchase Agreement: EPAM Systems has entered into an accelerated share repurchase agreement with Morgan Stanley to repurchase an aggregate of $300 million in common stock, reflecting the company's confidence in its stock value and aiming to enhance shareholder returns.
- Authorization Context: This repurchase is conducted under the company's existing $1 billion share repurchase authorization, indicating a proactive strategy in capital management to leverage market opportunities and increase shareholder value.
- Initial Share Delivery: Under the terms of the agreement, EPAM will pay Morgan Stanley $300 million and receive an initial delivery of 1,703,336 shares, valued at $240 million based on the closing price on March 4, 2026, providing liquidity support for the company.
- Future Revenue Outlook: EPAM projects $600 million in AI-native revenues for 2026, reflecting accelerated client demand and indicating the company's proactive positioning in technology innovation and market needs.
See More
