2 months ago
On August 25, EPAM Systems (NYSE:EPAM) announced a partnership with Wiz, the cloud and AI security platform now owned by Google Cloud, joining the Wiz Partner Alliance to help large organizations turn cloud risk data into actual engineering fixes. The timing is notable. Just weeks earlier, on August 6, EPAM reported second-quarter revenue growth of only 4.5% and pointed to a much slower pace ahead. A cybersecurity push gives the company a fresh growth story just as its core business decelerates.
The Wiz deal pairs Wiz's AI Application Protection Platform with EPAM's AI-native engineering and cloud modernization work, aiming to move clients from simply spotting cloud risks to actually remediating them across Google Cloud, AWS, Azure, and other environments. White Hat, an EPAM company, adds an offensive security layer of defensive, offensive, and incident response specialists to test whether flaws found by Wiz are actually exploitable, rather than just theoretical. EPAM says this formalizes work already underway, having delivered Wiz implementation programs across six industries: media and entertainment, transportation and logistics, life sciences and healthcare, financial services, automotive, and retail and consumer goods. That existing footprint gives the partnership a running start rather than a cold launch.
The financial backdrop supports the case that EPAM has room to invest here. Second quarter GAAP income from operations rose to 10.8% of revenue from 9.3% a year earlier, while non-GAAP operating margin climbed to 16.4% from 15%. GAAP diluted EPS reached $1.97, up 26.3% year over year, and non-GAAP diluted EPS hit $3.38, up 22%. The company also returned $409 million to shareholders through buybacks in the first half of 2026, including $85 million in the second quarter alone.
The numbers behind the Wiz announcement tell a more cautious story. EPAM's full-year revenue growth guidance now sits at 3.2% to 4.2%, with organic constant currency growth pegged at just 2.0% to 3.0%. The third quarter outlook is softer still: revenue of $1.410 billion to $1.425 billion implies year-over-year growth of roughly 1.7% at the midpoint, a sharp step down from the 4.5% posted in the second quarter.
Cash flow moved in the wrong direction too. EPAM used $38.8 million in operating activities during the first half of 2026, compared with $77.4 million generated over the same period in 2025. Total cash, equivalents and restricted cash fell 39% to $794.3 million as of June 30, from $1.301 billion at the end of 2025, a decline driven in part by continued share repurchases. Headcount growth was modest as well, with delivery professionals up just 0.3% from the prior quarter, suggesting a company being deliberate rather than aggressive about scaling capacity even as it adds new service lines like Wiz implementation.
#epam #cloud #year #company
The Wiz deal pairs Wiz's AI Application Protection Platform with EPAM's AI-native engineering and cloud modernization work, aiming to move clients from simply spotting cloud risks to actually remediating them across Google Cloud, AWS, Azure, and other environments. White Hat, an EPAM company, adds an offensive security layer of defensive, offensive, and incident response specialists to test whether flaws found by Wiz are actually exploitable, rather than just theoretical. EPAM says this formalizes work already underway, having delivered Wiz implementation programs across six industries: media and entertainment, transportation and logistics, life sciences and healthcare, financial services, automotive, and retail and consumer goods. That existing footprint gives the partnership a running start rather than a cold launch.
The financial backdrop supports the case that EPAM has room to invest here. Second quarter GAAP income from operations rose to 10.8% of revenue from 9.3% a year earlier, while non-GAAP operating margin climbed to 16.4% from 15%. GAAP diluted EPS reached $1.97, up 26.3% year over year, and non-GAAP diluted EPS hit $3.38, up 22%. The company also returned $409 million to shareholders through buybacks in the first half of 2026, including $85 million in the second quarter alone.
The numbers behind the Wiz announcement tell a more cautious story. EPAM's full-year revenue growth guidance now sits at 3.2% to 4.2%, with organic constant currency growth pegged at just 2.0% to 3.0%. The third quarter outlook is softer still: revenue of $1.410 billion to $1.425 billion implies year-over-year growth of roughly 1.7% at the midpoint, a sharp step down from the 4.5% posted in the second quarter.
Cash flow moved in the wrong direction too. EPAM used $38.8 million in operating activities during the first half of 2026, compared with $77.4 million generated over the same period in 2025. Total cash, equivalents and restricted cash fell 39% to $794.3 million as of June 30, from $1.301 billion at the end of 2025, a decline driven in part by continued share repurchases. Headcount growth was modest as well, with delivery professionals up just 0.3% from the prior quarter, suggesting a company being deliberate rather than aggressive about scaling capacity even as it adds new service lines like Wiz implementation.
#epam #cloud #year #company
3 months ago
Ending the month on an auspicious note, EPAM Systems (NYSE: EPAM) stock soared through the last week of July. With an ***** yst taking a more bullish stance on the software stock and the company reporting a new artificial intelligence (AI) collaboration, investors found plenty of reasons to pick up shares.
According to data provided by S&P Global Market Intelligence, shares of EPAM Systems rose 17.5% from the end of trading on July 24 through the close of yesterday's market session.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Maintaining a neutral rating, Citigroup lowered its price target on EPAM Systems stock to $100 from $112 on Monday. While the more tempered view of the stock's prospects seemed negative on the surface, investors interpreted the reduced price target as a glass-half-full view.
Shares of EPAM Systems closed at $89.85 before the weekend, implying upside of over 11% from the new price target.
#NVIDIA #intelligence
According to data provided by S&P Global Market Intelligence, shares of EPAM Systems rose 17.5% from the end of trading on July 24 through the close of yesterday's market session.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Maintaining a neutral rating, Citigroup lowered its price target on EPAM Systems stock to $100 from $112 on Monday. While the more tempered view of the stock's prospects seemed negative on the surface, investors interpreted the reduced price target as a glass-half-full view.
Shares of EPAM Systems closed at $89.85 before the weekend, implying upside of over 11% from the new price target.
#NVIDIA #intelligence
