Epam Systems (EPAM) AI Stock Analysis

• Market Cap: $8.83B
• Dividend Yield: N/A
• Average Volume (3M): 684.05K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.33
• Revenue Growth: 14.26%
• EPS Growth: -15.49%
• Country: US
• Employees: 61,200
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 3.08
• Shares Outstanding: 55,696,910
• 10 Day Avg. Volume: 860,104
• 30 Day Avg. Volume: 684,046
• PEG Ratio: 2.95
• Price to Book (P/B): 3.69
• Price to Sales (P/S): 2.83
• P/FCF Ratio: 25.42
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $206.80
• Price Target Upside: 17.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $188.00 ▲(7.24% Upside)

EPAM's overall stock score is driven by its strong financial performance and positive earnings call, highlighting robust revenue growth and strategic advancements in AI. While the technical analysis suggests potential overbought conditions, the company's strategic focus and market positioning provide a solid foundation for future growth. The valuation reflects high growth expectations, which may be justified by the company's performance and outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for EPAM's services, enhancing its market position and supporting long-term financial stability.

AI Initiatives

Expansion in AI initiatives positions EPAM as a leader in AI services, driving future growth and innovation in digital transformation.

Cash Flow Generation

Strong cash flow generation provides EPAM with the financial flexibility to invest in growth opportunities and return value to shareholders.

Negative Factors

Decreased Gross Margin

A decrease in gross margin may pressure profitability, potentially impacting EPAM's ability to sustain its operational efficiency long-term.

Seasonality Impact

Seasonality effects can lead to revenue volatility, challenging EPAM's ability to maintain consistent growth and financial performance.

Challenges with NEORIS

Difficulties with the NEORIS acquisition could hinder integration efforts and affect EPAM's growth prospects in new markets.

Epam Systems Business Overview & Revenue Model

Company Description

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, and maintenance with private, public, and mobile infrastructures for application, database, network, server, storage, and systems operations management, as well as monitoring, incident notification, and resolution services; and maintenance and support services. It also provides operation solutions comprising integrated engineering practices and smart automation; and optimization solutions that include software application testing, test management, automation, and consulting services to enable customers enhance their existing software testing and quality assurance practices, as well as other testing services that identify threats and close loopholes to protect its customers' business systems from information loss. In addition, the company offers business, experience, technology, data, and technical advisory consulting services; and digital and service design solutions, which comprise strategy, design, creative, and program management services, as well as physical product development, such as artificial intelligence, robotics, and virtual reality. It serves the financial services, travel and consumer, software and hi-tech, business information and media, life sciences and healthcare, and other industries. The company was founded in 1993 and is headquartered in Newtown, Pennsylvania.

How the Company Makes Money

EPAM generates revenue primarily through its consulting and engineering services, which are billed on a time-and-materials or fixed-price basis. The company serves a diverse client base, including Fortune 500 companies, and benefits from long-term contracts that provide a stable revenue stream. Key revenue streams include custom software development, system integration, and digital platform services. Additionally, EPAM has established significant partnerships with major technology providers, such as AWS, Microsoft, and Google Cloud, which enhance its service offerings and attract new clients. The company's focus on innovation and delivery of high-quality services has also contributed to its revenue growth, as it helps clients navigate the complexities of digital transformation.

Epam Systems Financial Statement Overview

Summary

Epam Systems presents a solid financial performance with consistent revenue growth and strong operational efficiency. The balance sheet is robust with low leverage, providing financial stability. Cash flow generation is healthy, though there is a slight decline in free cash flow relative to net income. Overall, the company is well-positioned in the Information Technology Services industry, with a focus on maintaining profitability and growth.

Income Statement

Epam Systems shows a stable revenue growth rate of 4.47% in the TTM, with a solid gross profit margin of 30.03%. However, the net profit margin has decreased to 7.91% from 9.61% in the previous year, indicating some pressure on profitability. The EBIT and EBITDA margins are healthy at 10.63% and 13.56%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.044, indicating low leverage and financial stability. Return on equity is at 11.07%, showing a moderate return on shareholder investments. The equity ratio stands at 76.92%, highlighting a robust equity base relative to total assets.

Cash Flow

Epam Systems demonstrates a positive free cash flow growth rate of 12.05% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is 1.35, suggesting strong cash flow relative to net income. However, the free cash flow to net income ratio has slightly decreased to 0.91, which may warrant monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.30B	4.73B	4.69B	4.82B	3.76B	2.66B
Gross Profit	1.50B	1.45B	1.43B	1.54B	1.27B	926.96M
EBITDA	656.59M	671.69M	659.86M	713.01M	680.27M	508.57M
Net Income	371.62M	454.53M	417.08M	419.42M	481.65M	327.16M
Balance Sheet
Total Assets	4.84B	4.75B	4.35B	4.01B	3.52B	2.72B
Cash, Cash Equivalents and Short-Term Investments	1.24B	1.29B	2.10B	1.74B	1.45B	1.38B
Total Debt	155.22M	163.25M	171.94M	193.22M	239.16M	266.40M
Total Liabilities	1.12B	1.12B	880.89M	1.01B	1.03B	738.31M
Stockholders Equity	3.73B	3.63B	3.47B	3.00B	2.49B	1.98B
Cash Flow
Free Cash Flow	172.73M	527.02M	534.22M	382.48M	460.83M	475.61M
Operating Cash Flow	207.62M	559.17M	562.63M	464.10M	572.33M	544.41M
Investing Cash Flow	-869.40M	-884.98M	-66.77M	-182.93M	-368.92M	-167.15M
Financing Cash Flow	-352.31M	-390.41M	-165.77M	-2.02M	-59.56M	-765.00K

Epam Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPAM, the sentiment is Positive. The current price of 175.3 is above the 20-day moving average (MA) of 156.52, above the 50-day MA of 156.87, and below the 200-day MA of 176.04, indicating a neutral trend. The MACD of 3.74 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 75.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EPAM.

Epam Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACN	80 Outperform	$153.68B	20.39	25.82%	2.47%	7.36%	6.18%
CTSH	80 Outperform	$36.03B	17.31	14.50%	1.72%	7.44%	-4.57%
CACI	78 Outperform	$13.00B	25.81	13.14%	―	12.61%	11.85%
G	78 Outperform	$6.77B	12.88	22.32%	1.49%	7.39%	-14.45%
EPAM	74 Outperform	$8.83B	22.94	10.21%	―	14.26%	-15.49%
INFY	74 Outperform	$68.80B	20.81	29.15%	3.15%	4.62%	1.06%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Epam Systems Corporate Events

EPAM Systems Reports Strong Q3 2025 Earnings

EPAM Systems, Inc. is a global leader in digital transformation services and product engineering, specializing in software engineering, cloud, and AI-enabled solutions for enterprises and startups worldwide. The company has announced its third-quarter 2025 earnings, reporting a notable revenue increase of 19.4% year-over-year, reaching $1.394 billion. Despite this growth, the GAAP diluted EPS saw a decline, reflecting a decrease of $0.46 to $1.91, while the non-GAAP diluted EPS slightly decreased by $0.04 to $3.08. EPAM has also continued its commitment to returning capital to shareholders, repurchasing $82.1 million of stock and establishing a new $1 billion share repurchase plan. Key financial highlights include a GAAP income from operations of 10.4% of revenues and a non-GAAP income from operations of 16.0%. The company has raised its full-year revenue growth expectations to a range of 14.8% to 15.2%, with an anticipated GAAP diluted EPS of $6.75 to $6.83 and a non-GAAP diluted EPS of $11.36 to $11.44. Looking ahead, EPAM remains optimistic about its strategic positioning in the AI-Native enterprise space, driven by investments in AI innovation and partnerships, aiming to lead in the future world of AI-Native enterprises.

EPAM Systems’ Earnings Call Highlights Growth and AI Focus

EPAM Systems’ recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth and significant strides in AI initiatives. The company showcased its strategic advancements through new product launches and earned notable recognitions. However, challenges such as decreased gross margins, seasonal impacts, and issues with the NEORIS acquisition were also acknowledged. Despite these hurdles, EPAM’s outlook remains optimistic, bolstered by its strategic initiatives and strong market positioning.

EPAM Systems Announces $1 Billion Stock Buyback Program

On October 21, 2025, EPAM Systems announced a new $1 billion stock repurchase program authorized by its Board of Directors. This initiative reflects the company’s confidence in its growth prospects and financial strength, as it aims to enhance shareholder value while continuing to invest in its business and AI agenda. The program, which spans 24 months, allows for flexibility in repurchasing shares based on market conditions and other factors.

The most recent analyst rating on (EPAM) stock is a Buy with a $205.00 price target. To see the full list of analyst forecasts on Epam Systems stock, see the EPAM Stock Forecast page.

EPAM Systems Enters New $700 Million Credit Agreement

On October 3, 2025, EPAM Systems, Inc. entered into an amended and restated credit agreement with a syndicate of lenders, establishing a five-year $700 million revolving credit facility with PNC Bank, National Association serving as the administrative agent. This facility, which can potentially increase to $1.2 billion, replaces the 2021 credit facility and allows for unsecured borrowings in multiple currencies. The agreement includes various covenants and restrictions on additional indebtedness, asset dispositions, and acquisitions, with a focus on maintaining specific leverage ratios.

The most recent analyst rating on (EPAM) stock is a Buy with a $205.00 price target. To see the full list of analyst forecasts on Epam Systems stock, see the EPAM Stock Forecast page.

EPAM Systems Appoints Balazs Fejes as New CEO

On August 27, 2025, EPAM Systems’ Board of Directors approved the transition of Arkadiy Dobkin to Executive Chairman and appointed Balazs Fejes as CEO and President, effective September 1, 2025. Mr. Fejes, who joined EPAM in 2004, will receive an annual base salary of $850,000 and a grant of restricted stock units valued at $670,000. The Board also amended the company’s bylaws to increase the maximum number of directors from ten to eleven, effective September 1, 2025.

The most recent analyst rating on (EPAM) stock is a Buy with a $199.00 price target. To see the full list of analyst forecasts on Epam Systems stock, see the EPAM Stock Forecast page.

EPAM Systems’ Earnings Call Highlights Robust Growth

EPAM Systems’ latest earnings call showcased a largely positive sentiment, driven by the company’s strong financial performance and strategic positioning. Despite some challenges in gross margin and cash flow, EPAM’s significant revenue growth and robust performance across all verticals and geographic regions highlight its well-positioned stance for future growth, particularly in AI-driven transformation.

EPAM Systems Reports Strong Q2 2025 Performance

EPAM Systems, Inc. is a global leader in digital transformation services and product engineering, specializing in AI-enabled solutions and cloud technologies for enterprises and startups. In its second quarter of 2025, EPAM Systems reported a robust financial performance with revenues reaching $1.353 billion, marking an 18% increase year-over-year. The company also raised its full-year revenue growth outlook, reflecting strong organic growth and favorable foreign exchange rate adjustments.