What happened?
Shares of digital engineering services company EPAM Systems (NYSE: EPAM) jumped 16.3% in the morning session after the company reported third-quarter 2026 earnings growth, raised its full-year financial guidance, and significantly increased its share buyback authorization.
According to a company press release, EPAM reported third-quarter revenue of $1.426 billion, up 2.3% year over year, while non-GAAP diluted earnings per share rose 14.0% to $3.51. The company lifted its full-year outlook, forecasting annual revenue growth between 3.5% and 3.7% and non-GAAP diluted earnings per share of $13.23 to $13.31. In addition, EPAM authorized an additional $1.5 billion for share repurchases, elevating the total program authorization to $1.8 billion. The company also outlined plans for a $500 million accelerated share repurchase and committed to returning at least 50% of annual free cash flow to shareholders from 2027 through 2029.
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What is the market telling us
EPAM’s shares are very volatile and have had 25 moves greater than 5% over the last year. But moves this big are rare even for EPAM and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was about 1 month ago when the stock gained 6.8% on the news that Accenture’s stronger-than-expected results and above-consensus fiscal 2027 outlook lifted IT consulting and business-services peers, while IBM separately announced a self-hosted deployment option for IBM Bob aimed at enterprise AI sovereignty and governance.
EPAM is down 19.7% since the beginning of the year, and at $160.91 per share, it is trading 27.3% below its 52-week high of $221.40 from January 2026. Investors who bought $1,000 worth of EPAM’s shares 5 years ago would now be looking at only $228.22.
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