EPAM Systems

Capital deployment has been balanced between reinvestment, M&A, and buybacks. EPAM completed sizable 2024 acquisitions of NEORIS and First Derivative to deepen domain and expand LATAM and financial services capabilities, then pivoted to large 2025 buybacks of 660.6 million with 776.5 million authorization remaining.

SBC expense in 2025 was 176.8 million, a manageable ~3% of revenue, and diluted weighted average shares declined year over year. Acquisition integration risk remains, as does the need to sustain organic margin improvement post-integration.

Overall, management’s record merits a positive score with a watchlist on discipline and returns from the 2024 deal cohort.