EPAM Systems Expands Into Cloud Security With Wiz Alliance as Revenue Growth Moderates

Digital services provider EPAM Systems (NYSE: EPAM) has entered into a strategic partnership with Wiz, joining the Wiz Partner Alliance on Aug. 25 to expand its AI-driven cybersecurity offerings. The agreement allows EPAM to integrate Wiz's cloud security platform with its engineering capabilities to help enterprise clients resolve cloud risk exposures, as first reported by Yahoo Finance. The launch comes weeks after EPAM reported second-quarter revenue growth of 4.5% on Aug. 6 while warning investors of a broader top-line slowdown ahead.

The collaboration couples Wiz's AI Application Protection Platform—the security technology now under Google Cloud—with EPAM's existing AI-native engineering and cloud modernization service lines. Rather than simply alerting clients to cloud vulnerabilities, the combined workflow is designed to execute technical remediations across multi-cloud infrastructure, including Amazon Web Services, Microsoft Azure, and Google Cloud environments.

To strengthen threat validation, EPAM is deploying specialists from White Hat, an EPAM subsidiary focused on offensive security. White Hat provides defensive, offensive, and incident response expertise to verify whether vulnerabilities detected by Wiz pose active, exploitable risks rather than purely theoretical concerns. EPAM stated that the formal agreement builds upon existing commercial efforts, having already completed Wiz deployment projects across six client verticals: financial services, healthcare and life sciences, automotive, retail and consumer goods, transportation and logistics, and media and entertainment.

The push into cybersecurity services arrives against a backdrop of expanding profitability despite slowing sales. In its second-quarter financial results, EPAM reported GAAP operating income of 10.8% of revenue, up from 9.3% in the same period a year earlier. Non-GAAP operating margin rose to 16.4% from 15.0%. Bottom-line growth remained robust, with GAAP diluted earnings per share climbing 26.3% year over year to $1.97 and non-GAAP diluted EPS rising 22% to $3.38.

However, full-year projections highlight ongoing top-line friction across EPAM's core enterprise services business. Management projected full-year revenue growth between 3.2% and 4.2%, with organic constant currency revenue growth expected to land between 2.0% and 3.0%. Third-quarter revenue is forecasted at $1.410 billion to $1.425 billion, representing year-over-year growth of approximately 1.7% at the midpoint—marking a sharp drop from the 4.5% pace recorded in the second quarter.

Cash generation also recorded a notable shift during the first six months of 2026. EPAM used $38.8 million in cash for operating activities during the first half of 2026, compared to generating $77.4 million during the corresponding period in 2025. Total cash, cash equivalents, and restricted cash dropped 39% to $794.3 million as of June 30, down from $1.301 billion at the end of 2025. The cash reduction was driven in part by capital allocation toward share buybacks, with EPAM repurchasing $409 million of its stock in the first half of 2026, including $85 million during the second quarter.

Headcount adjustments reflected similar discipline, with EPAM's delivery professional workforce growing by just 0.3% sequentially from the first quarter. Institutional market indicators show mixed market sentiment; hedge fund ownership remained flat at 34 funds across the two most recent quarters, while short interest stood at 19.78% of the company's float. As of Sept. 4, EPAM traded at a forward price-to-earnings ratio of 9.03, reflecting investor focus on top-line deceleration over margin expansion.