EPAM Systems, Inc. reported third-quarter revenue growth of 2.3% and increased its share-repurchase authorization by $1.5 billion to $1.8 billion, with plans for a $500 million accelerated buyback under the program.
Revenue for the quarter ended Sept. 30 was $1.426 billion. GAAP income from operations rose 21.4% to $175.9 million, and the GAAP operating margin increased to 12.3% from 10.4% a year earlier. On a non-GAAP basis, income from operations rose 7.0%, and the operating margin was 16.7%, compared with 16.0% a year earlier.
Diluted earnings per share were $2.53 on a GAAP basis, up 32.5% year over year. Non-GAAP diluted earnings per share reached $3.51, an increase of 14%.
EPAM’s Form 8-K was filed with the Securities and Exchange Commission on Nov. 5 and included the results and the company’s updated outlook. The SEC filing index lists Items 2.02, 8.01 and 9.01, covering results of operations and financial condition, other events, and financial statements and exhibits.
The expanded authorization leaves EPAM with $1.8 billion available for repurchases. EPAM plans to enter into a $500 million accelerated share-repurchase agreement during the week of Nov. 9 and intends to cover its cost with cash on hand and borrowings from its existing credit facility. The company also committed to returning at least half of its free cash flow to shareholders in each year from 2027 through 2029.
For 2026, the company forecast revenue growth of 3.5% to 3.7% and GAAP diluted earnings per share of $8.41 to $8.49. Its fourth-quarter revenue outlook is $1.405 billion to $1.420 billion.
