EPAM Systems, Inc. (NYSE:EPAM) released its third-quarter 2026 earnings results on November 5, 2026, reporting revenues of $1.426 billion, expanded operating margins, and a new $1.5 billion share repurchase authorization alongside plans for a $500 million accelerated share repurchase.

Key Highlights

  • Revenue reached $1.426 billion in Q3 2026, a year-over-year increase of $32.1 million, or 2.3%, and up 2.5% on an organic constant currency basis.
  • GAAP diluted EPS was $2.53, an increase of $0.62, or 32.5%, compared to $1.91 in Q3 2025; non-GAAP diluted EPS was $3.51, up $0.43, or 14.0%, from $3.08.
  • GAAP income from operations was $175.9 million, or 12.3% of revenues, up from 10.4% in Q3 2025; non-GAAP income from operations was $238.4 million, or 16.7% of revenues, up from 16.0%.
  • Board approved $1.5 billion in incremental repurchase authorization and replaced the prior program with a new $1.8 billion program through December 31, 2029.
  • EPAM plans to enter a $500 million accelerated share repurchase during the week of November 9, 2026, funded by cash on hand and borrowings under its existing credit facility.
  • The company committed to returning at least 50% of free cash flow to shareholders annually from 2027 through 2029, according to the filing.
  • Full-year 2026 GAAP diluted EPS guidance is now in the range of $8.41 to $8.49, and non-GAAP diluted EPS in the range of $13.23 to $13.31.

EPAM Q3 2026 Financial Results and Capital Return Plans

According to the filing, EPAM Systems reported third-quarter 2026 revenues of $1.426 billion, reflecting a year-over-year increase of 2.3%. On an organic constant currency basis, the company disclosed revenues grew 2.5% compared to the third quarter of 2025. GAAP income from operations totaled $175.9 million, up $31.0 million or 21.4% from $144.9 million in the prior-year period, and represented 12.3% of revenues versus 10.4% in Q3 2025. Non-GAAP income from operations was $238.4 million, an increase of $15.6 million or 7.0%, and came in at 16.7% of revenues, up from 16.0%.

The filing disclosed that cash provided by operating activities was $288.8 million for the three months ended September 30, 2026, compared to $294.7 million for the same period in 2025. For the first nine months of 2026, cash provided by operating activities was $250.1 million, compared to $372.0 million for the same period in 2025. Cash, cash equivalents, and restricted cash totaled $969.9 million as of September 30, 2026, a decrease of $331.4 million, or 25.5%, from $1.301 billion as of December 31, 2025. Total headcount was approximately 63,650 as of September 30, 2026, including approximately 57,350 delivery professionals, an increase of 1.2% from June 30, 2026.

On the capital allocation front, the filing stated EPAM has returned approximately $1.7 billion to shareholders since initiating repurchase programs in 2023. The company spent approximately $489 million on share repurchases during the first nine months of 2026, including approximately $80 million in Q3. The Board of Directors terminated the prior repurchase program on September 30, 2026, replacing it with a new program authorizing up to $1.8 billion of repurchases through December 31, 2029. For the fourth quarter, the company disclosed revenue expectations of $1.405 billion to $1.420 billion and GAAP diluted EPS of $2.43 to $2.51, with weighted average diluted shares outstanding of 49.9 million.

What Was Disclosed

EPAM Systems filed its Q3 2026 earnings release on November 5, 2026, disclosing revenue of $1.426 billion, expanded GAAP and non-GAAP operating margins, updated full-year and Q4 guidance, a new $1.8 billion share repurchase program, and a planned $500 million accelerated share repurchase.