Stock AnalysisUpdated July 13, 2026 · 9 min read

Is EPAM Systems Stock (EPAM) Halal? A Current Sharia Screen

A filing-based analysis of EPAM that combines reproducible financial ratios with qualitative review of digital engineering, AI, cloud services and client use.

Time-sensitive screening snapshot: financial ratios and business mix can change after each filing. This is educational research, not a fatwa or investment advice. Verify the latest filing and your preferred Sharia standard before acting.

The short answer

EPAM is HALAL in ZakatInvest's qualitative classification, but its current result depends on the screening methodology. Digital engineering, cloud, consulting and software-development services are generally permissible. The examined FTSE and Malaysia asset-ratio calculations pass, while the examined MSCI total-assets calculation fails because receivables plus cash exceed its 33.33% limit.

This is a reproducible research screen, not a fatwa or investment recommendation. Readers should apply their school's principles and consult a qualified scholar for a binding ruling.

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.

Current quantitative screen

The calculations use EPAM's official filing at the SEC (Q1 2026 Form 10-Q). Amounts are in USD millions and use total assets as the denominator.

  • Interest-bearing debt / assets: 3.51%, using the $165.000 million outstanding revolving-facility balance.
  • Cash plus short-term investments / assets: 22.14%, using $1,036.959 million of cash and cash equivalents plus $4.3 million of short-term investments.
  • Receivables plus cash / assets: 47.02%, using $1,174.660 million of trade receivables and contract assets plus cash.
  • Mixed interest-and-other income / revenue: 0.11% for the quarter. This is a conservative upper bound, not a fixed purification percentage.

FTSE Yasaar and Malaysia SAC financial calculations pass on the reported inputs, while the examined MSCI total-assets calculation fails on receivables plus cash. Market-cap denominator methods are not calculated because ZakatInvest does not store a licensed, reproducible historical market-cap series.

What EPAM Systems does

EPAM describes itself as a global provider of digital engineering, cloud and AI-enabled transformation services, as well as business and experience consulting. Its work includes software engineering, architecture, design, data and AI implementation, and enterprise technology transformation. These are generally permissible professional services.

The filing reports $1,400.061 million of quarterly revenue but does not allocate that revenue by customer industry, government or defense use, financial-services client, or downstream application. The qualitative business assessment therefore remains incomplete rather than claiming that every customer use is unambiguously compliant.

Debt, cash and purification

At March 31, 2026, EPAM reported $4,703.451 million of total assets, $1,036.959 million of cash and cash equivalents, $4.3 million of short-term investments and $165.000 million of outstanding debt. The company says its cash equivalents include time deposits; the screen avoids double-counting those balances.

EPAM reports $1.582 million of interest and other income, net. The filing says this mixed line includes interest, financial-instrument gains and losses, interest expense and contingent-consideration fair-value changes, so it is shown only as a conservative upper bound. No scholar-approved purification percentage is inferred from it.

Qualitative considerations

  • Neutral technology services: EPAM's engineering and consulting work can support conventional finance, government, defense-adjacent and other customer activities that readers may assess differently.
  • AI and cloud use: AI-enabled transformation and cloud work create continuing dual-use, privacy and data-governance questions.
  • Geopolitical operations: the filing identifies material delivery operations and cash in Ukraine and Belarus, creating sanctions, banking and continuity risks.
  • Financial holdings: cash, time deposits and short-term investments affect liquidity treatment, and scholars may apply different denominator rules.
  • Business diligence: stock compensation, acquisitions, labor practices and cross-border data processing remain relevant beyond the ratio screen.

The methodology-dependent verdict

EPAM remains HALAL in ZakatInvest's qualitative classification, with FTSE and Malaysia financial passes but an MSCI total-assets failure on receivables plus cash. This is not an official index membership or fatwa. Revisit the record when EPAM files new statements or materially changes its debt, cash, client mix, AI or geographic disclosures.

EPAM: permissible technology services, methodology-dependent screen

Use the quantitative screen alongside your school's principles and consult a qualified scholar before investing.

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