EPAM Systems Inc. advanced more than 2.6% in premarket trading on Monday after activist hedge fund Engine Capital disclosed a 1.5% stake in the IT services company and pressed for either an expanded share buyback program or a strategic sale.
The New York-based company, which provides software engineering and digital platform services, saw its shares rise following the disclosure. Engine Capital, which manages the stake, argued that EPAM’s current capital allocation strategy may not fully reflect its potential value, according to the report.
The firm did not immediately respond to requests for comment on the activist’s demands. Engine Capital’s filing did not specify whether it had engaged in discussions with EPAM’s management regarding its proposals.
EPAM has not announced any changes to its capital return policies in recent quarters. The company reported $2.1 billion in revenue for the full-year 2025, up 12% from the prior year, and maintained a focus on high-margin software development and cloud services.
Premarket gains followed a 1.8% increase in EPAM’s shares during regular trading on Friday, bringing the stock’s year-to-date performance to roughly flat after a volatile first half of 2026.
