EPAM Systems established a partnership with Wiz, a cloud and AI security platform owned by Google Cloud, on August 25, joining the Wiz Partner Alliance. The collaboration aims to help large enterprises convert cloud risk data into actionable engineering solutions. The partnership pairs Wiz’s AI Application Protection Platform with EPAM’s engineering capabilities and cloud modernization services across multiple cloud environments including Google Cloud, AWS, and Azure.
White Hat, an EPAM subsidiary, contributes offensive security expertise through defensive, offensive, and incident response specialists who test whether identified vulnerabilities are genuinely exploitable. EPAM indicated the partnership formalizes existing collaborative efforts already deployed across six industries: media and entertainment, transportation and logistics, life sciences and healthcare, financial services, automotive, and retail and consumer goods. This existing client base provides an operational foundation for the expanded service offering.
The timing of the announcement reflects challenges in EPAM’s core business. On August 6, the company reported second-quarter revenue growth of 4.5% and indicated a slower growth trajectory ahead. Full-year revenue growth guidance ranges from 3.2% to 4.2%, with organic constant currency growth projected at 2.0% to 3.0%. Third-quarter revenue outlook of $1.410 billion to $1.425 billion implies approximately 1.7% year-over-year growth at the midpoint, representing a significant deceleration.
Operating margins strengthened during the period, with GAAP operating margin rising to 10.8% of revenue from 9.3% year-over-year and non-GAAP operating margin increasing to 16.4% from 15%. GAAP diluted earnings per share reached $1.97, up 26.3% year-over-year, while non-GAAP diluted earnings per share totaled $3.38, up 22%. The company returned $409 million to shareholders through buybacks during the first half of 2026.
Operating cash flow declined, with the company using $38.8 million in operating activities during the first half of 2026 compared to $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 year-end 2025. EPAM’s forward price-to-earnings ratio stood at 9.03 as of September 4, reflecting market expectations of minimal growth despite expanding profitability metrics.
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