EPAM Posts $1.43B Q3 Revenue; Boosts Buyback Authorization

EPAM Systems, Inc. reported third-quarter revenue of $1.426 billion on Thursday, up 2.3% from $1.394 billion a year earlier, and said GAAP diluted earnings rose to $2.53 a share from $1.91.

The Newtown, Pennsylvania-based digital engineering company said organic constant-currency revenue rose 2.5%. GAAP income from operations was $175.9 million, or 12.3% of revenue, compared with $144.9 million, or 10.4%, a year earlier. Non-GAAP diluted earnings, a measure the company emphasizes, were $3.51 a share, up from $3.08.

Capital return

The board increased the share-repurchase authorization by $1.5 billion, bringing the remaining authorization to about $1.8 billion, and said it plans to enter a $500 million accelerated share repurchase next week. EPAM also said it intends to return at least 50% of free cash flow to shareholders each year from 2027 through 2029.

Outlook

For full-year 2026, EPAM now expects year-over-year revenue growth of 3.5% to 3.7%, and GAAP diluted EPS of $8.41 to $8.49. Non-GAAP diluted EPS guidance is $13.23 to $13.31. For the fourth quarter, the company guided revenue to $1.405 billion to $1.420 billion and GAAP diluted EPS to $2.43 to $2.51.

Chief Executive Balazs Fejes pointed to better-than-expected results, wider margins and progress on the company’s transformation strategy. Shares of EPAM trade on the New York Stock Exchange.

Sources: PR Newswire, EPAM Systems