EPAM

EPAM Systems Inc.

HALAL — METHODS DIFFERstock

Is EPAM Halal?

Software engineering services — IT consulting and software development is permissible.

What You Should Know

EPAM's March 31, 2026 Form 10-Q reports debt/assets of 3.51%, cash plus short-term investments/assets of 22.14%, receivables plus cash/assets of 47.02%, and a conservative mixed interest-and-other-income upper bound of 0.11% of quarterly revenue. Digital engineering, cloud, AI-enabled transformation and consulting are generally permissible professional services, but the filing does not allocate revenue by customer industry or downstream use. FTSE Yasaar and Malaysia SAC asset-ratio calculations pass; the examined MSCI total-assets calculation fails on receivables plus cash.

⚠️ Concerns

  • Neutral engineering and AI/cloud services can support customer activities readers assess differently
  • Mixed interest-and-other-income line requires methodology-specific treatment rather than an invented purification rate
  • Receivables-plus-cash ratio differs across asset-based methods
  • Ukraine and Belarus operations create geopolitical, sanctions and continuity risks

Current quantitative Sharia screen

Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.

USD · millions
Interest-bearing debt / assets
3.51%Within limit
Below 33.333% under FTSE Yasaar

165 / 4,703.451

Cash + interest-bearing securities / assets
22.14%Within limit
Below 33.333% under FTSE Yasaar

1,041.259 / 4,703.451

Receivables + cash / assets
47.02%Within limit
Below 50% under FTSE Yasaar

2,211.619 / 4,703.451

Non-compliant income / revenue (upper bound)
0.11%Within limit
No more than 5% under FTSE Yasaar

1.582 / 1,400.061

FTSE Yasaar
v4.6, February 2026
Financial
Pass
Overall
Incomplete

Debt is 3.51%, liquidity is 22.14%, receivables plus cash are 47.02% and the mixed income upper bound is 0.11%; the examined FTSE financial ratios pass, while business allocation remains incomplete.

MSCI Islamic (total-assets series)
October 2024 methodology
Financial
Fails
Overall
Fails

Debt is 3.51% and liquidity is 22.14%, but receivables plus cash are 47.02%, above the examined MSCI total-assets limit. This is a calculation against the named method, not an index-membership claim.

Malaysia SAC financial ratios
single 5% activity benchmark adopted November 2025
Financial
Pass
Overall
Incomplete

Debt is 3.51% and liquidity is 22.14%, below the examined 33% Malaysia SAC financial limits; screened business revenue remains unavailable. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.

Market-cap denominator methods
MSCI M-Series, S&P and Dow Jones methods differ
Financial
Not calculated
Overall
Not calculated

A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.

Business-activity disclosure

EPAM provides digital engineering, cloud, AI-enabled transformation, consulting, experience design and software-development services. These professional technology services are generally permissible, but the filing does not allocate revenue by customer industry, government or defense use, financial-services client, or downstream application.

Limitation: The filing reports one consolidated revenue line and does not provide a universal prohibited-revenue numerator by client activity or use case; no blanket zero-concern claim is made.

Purification

EPAM reports a mixed interest-and-other-income line and does not prescribe a scholar-approved purification percentage. Readers should follow the qualified scholar or methodology they use rather than applying an invented fixed rate.

Inputs, assumptions and primary sources
  • Inputs use EPAM's March 31, 2026 Form 10-Q; amounts are USD millions converted from the filing's USD-thousands presentation.
  • Debt uses the $165.000 million outstanding under the 2025 revolving credit facility. Operating lease liabilities and contingent consideration are not entered as conventional debt.
  • Cash uses $1,036.959 million of cash and cash equivalents. The filing separately describes $4.3 million of short-term investments; restricted cash is not added. Cash equivalents include time deposits, so the separately disclosed short-term balance is not double-counted.
  • Receivables use $1,174.660 million of trade receivables and contract assets, net. Other current assets are not added.
  • Quarterly revenue is $1,400.061 million. The filing reports $1.582 million of interest and other income, net, a mixed line that includes interest, financial-instrument gains and losses, interest expense and contingent-consideration fair-value changes; it is used only as a conservative upper bound, not as a precise purification amount.

This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.

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