Monitor the final settlement of the ASR transaction by Q2 2026, which will determine the exact number of shares repurchased. The buyback should provide EPS support, but watch for any share dilution from employee compensation programs that could offset this benefit. Consider the impact of using credit facilities on EPAM's debt levels.
Price Chart
Executive Summary
EPAM Systems entered into a $300 million accelerated share repurchase (ASR) agreement with Morgan Stanley to repurchase its common stock. The company will receive an initial delivery of 1.7 million shares ($240 million) upfront, with the final share count determined by the volume-weighted average price during the ASR period, less a discount. This transaction is funded through cash on hand and credit facilities, reducing EPAM's remaining share buyback authorization to $452.5 million.
Key Financial Metrics
Key Facts
- EPAM entered into a $300 million accelerated share repurchase agreement with Morgan Stanley
- Initial share delivery of 1,703,336 shares ($240 million) based on March 4, 2026 closing price
- Final share count will be determined by volume-weighted average price during the ASR period, less a discount
- Transaction funded with cash on hand and borrowings under existing credit facility
- Remaining share repurchase authorization reduced to $452.5 million from $1.0 billion
Financial Impact
EPAM will spend $300 million to repurchase shares, with immediate reduction of $240 million in cash and corresponding increase in treasury stock. The final share count will depend on the volume-weighted average price during the ASR period.
Risk Factors
- Final share count could be lower than expected if stock price increases during the ASR period
- Use of credit facilities increases leverage and interest expense
- Opportunity cost of deploying $300 million in cash for share repurchases instead of acquisitions or R&D
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001352010-26-000019 |
| Exhibit: ex991-asr.htm | 0001352010-26-000019 |
| Document: epam-20260304.htm | 0001352010-26-000019 |
| Document: 0001352010-26-000019-index-headers.html | 0001352010-26-000019 |
| Document: 0001352010-26-000019-index.html | 0001352010-26-000019 |
| Document: 0001352010-26-000019.txt | 0001352010-26-000019 |
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| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 8w ago | Institutional Cluster | $109.87 $117.20 | ▼ −6.67% | ▼ −7.27% | $108.29 (+1.44%) |
Jul 6, 2026 12w ago | Press Release | $89.55 $107.26 | ▲ +19.78% | ▲ +18.44% | $108.29 (+20.93%) |
Apr 30, 2026 22w ago | Insider Cluster | $113.06 $101.43 | ▼ −10.29% | ▼ −15.25% | $108.29 (−4.22%) |
Apr 15, 2026 24w ago | DEFA14A | $126.59 $90.39 | ▼ −28.60% | ▼ −34.41% | $108.29 (−14.46%) |
Mar 5, 2026 30w ago | 8-K | $144.28 $137.76 | ▼ −4.52% | ▼ −0.73% | $108.29 (−24.94%) |
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