Epam Systems (EPAM)
NYSE:EPAM
Want to see EPAM full AI Analyst Report?
Top Page
Epam Systems
(NYSE:EPAM)
Select Model
Select Model
Rating:63Neutral
Price Target:
$106.00
▼(-19.29% Downside)
Action:Reiterated
Date:05/09/26
EPAM scores as a mid-range setup driven by strong financial stability (low leverage, solid cash generation) and a generally constructive earnings narrative around AI-native growth and improving profitability. The score is held back most by very weak technicals (sharp downtrend with oversold momentum) and near-term execution/cash-flow visibility risks highlighted on the earnings call (lowered growth guidance, negative Q1 FCF and higher DSO).
Positive Factors
Conservative balance sheet
Very low leverage and a sizeable equity base provide durable financial flexibility. Over the next 2–6 months this supports continued investment in AI capabilities, opportunistic buybacks or targeted M&A without stressing liquidity, and helps absorb timing shocks from large deal conversions.
Negative Factors
Margin compression vs. prior peaks
Margins have meaningfully retreated from prior peaks, signaling structural pressure from pricing, mix shifts, or higher delivery costs. Persistently lower gross and net margins will constrain free cash flow generation and returns, limiting upside from top-line growth over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Very low leverage and a sizeable equity base provide durable financial flexibility. Over the next 2–6 months this supports continued investment in AI capabilities, opportunistic buybacks or targeted M&A without stressing liquidity, and helps absorb timing shocks from large deal conversions.
Read all positive factors
Epam Systems Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and indicating strategic focus and market demand.
Data provided by:
The Fly
The FlyEpam Systems (EPAM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.39B
Dividend YieldN/A
Average Volume (3M)1.78M
Price to Earnings (P/E)22.1
Beta (1Y)1.12
Revenue Growth14.21%
EPS Growth-2.92%
CountryUS
Employees61,200
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)7.00
Shares Outstanding52,244,450
10 Day Avg. Volume2,417,490
30 Day Avg. Volume1,784,736
Financial Highlights & Ratios
PEG Ratio-2.06
Price to Book (P/B)3.11
Price to Sales (P/S)2.10
P/FCF Ratio18.69
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit2.98
Enterprise Value/Ebitda6.80
Forecast
1Y Price Target
$145.09Price Target Upside10.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)13.04
Revenue Forecast (FY)$5.74B
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, impleme...
How the Company Makes Money
EPAM primarily makes money by providing services to business customers under fee-based arrangements for software engineering and digital transformation work. The core revenue stream is professional services billed to clients via (1) time-and-mater...
Epam Systems Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational and strategic positives — solid Q1 revenue growth at the high end of outlook, improving gross margins and operating profitability, strong and accelerating AI-native revenue momentum (> $125M in Q1, ~20% sequential growth), significant partnerships and upskilling progress, and an expanding pipeline of larger strategic AI deals. Offsetting these strengths were near-term execution and cash concerns: reduced full-year revenue growth guidance, negative operating/free cash flow in Q1, higher DSO, targeted headcount reductions, and uncertainty around timing and economics of large new AI-enabled deals (including evolving token/commercial models). Overall the company appears to be in a constructive transition toward AI-native services with improving profitability, but with notable short-term visibility and cash-flow headwinds tied to deal timing and macro caution.Positive Updates
Revenue Growth at High End of Outlook
Q1 revenue of $1.4 billion, up 7.6% year-over-year and up 3.7% on an organic constant-currency basis; company delivered revenue at the high end of its Q1 outlook.
Negative Updates
Lowered Full-Year Growth Guidance
Full-year revenue growth guidance was reduced to a range of 4.0% to 6.5% (organic constant-currency growth 2.5% to 5.0%); management cited greater macro uncertainty and delayed client decision-making as drivers of the revision.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth at High End of Outlook
Q1 revenue of $1.4 billion, up 7.6% year-over-year and up 3.7% on an organic constant-currency basis; company delivered revenue at the high end of its Q1 outlook.
Read all positive updates
Company Guidance
EPAM guided 2026 full‑year revenue growth of 4.0%–6.5% (with ~+1.5% FX tailwind → organic constant‑currency growth of 2.5%–5.0%), GAAP operating margin of 10%–11% and non‑GAAP operating margin of 15%–16%, a GAAP effective tax rate of ~27% and non‑GAAP tax rate of ~24%, GAAP diluted EPS of $8.29–$8.59 and non‑GAAP diluted EPS of $12.98–$13.28, and a weighted‑average diluted share count of ~52.7M; for Q2 they expect revenue of $1.400–$1.415B (midpoint ≈4% YoY; FX +1.3% → organic ≈2.7%), GAAP op margin 9%–10% and non‑GAAP op margin 15%–16%, GAAP tax ~27% / non‑GAAP tax ~24%, GAAP EPS $1.79–$1.87 and non‑GAAP EPS $3.10–$3.18 with ~52.4M diluted shares. Key modeling assumptions include stock‑based compensation of ~ $50M in Q2 and ~$44M each remaining quarter, amortization of intangibles of ~$70M per remaining quarter, an approximate $3M FX loss each quarter, tax effect of non‑GAAP adjustments of ~$19M in Q2 and ~$14M in each remaining quarter, $2M excess tax shortfall in Q2 (negligible in Q3, $1M in Q4), $13M Q2 cost‑optimization expense, interest & other income of $1M/$2M/$4M in Q2–Q4, and continued Ukraine delivery‑center productivity at 2025 levels.Epam Systems Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.56B | 5.46B | 4.73B | 4.69B | 4.82B | 3.76B |
| Gross Profit | 1.55B | 1.45B | 1.45B | 1.43B | 1.54B | 1.27B |
| EBITDA | 678.55M | 630.43M | 671.69M | 659.86M | 713.01M | 680.27M |
| Net Income | 386.72M | 377.68M | 454.53M | 417.08M | 419.42M | 481.65M |
Balance Sheet | ||||||
| Total Assets | 4.70B | 4.90B | 4.75B | 4.35B | 4.01B | 3.52B |
| Cash, Cash Equivalents and Short-Term Investments | 1.04B | 1.30B | 1.29B | 2.10B | 1.74B | 1.45B |
| Total Debt | 287.94M | 143.70M | 163.25M | 171.94M | 193.22M | 239.16M |
| Total Liabilities | 1.27B | 1.22B | 1.12B | 880.89M | 1.01B | 1.03B |
| Stockholders Equity | 3.43B | 3.68B | 3.63B | 3.47B | 3.00B | 2.49B |
Cash Flow | ||||||
| Free Cash Flow | 543.64M | 612.69M | 527.02M | 534.22M | 382.48M | 460.83M |
| Operating Cash Flow | 594.41M | 654.93M | 559.17M | 562.63M | 464.10M | 572.33M |
| Investing Cash Flow | -59.38M | -49.05M | -884.98M | -66.77M | -182.93M | -368.92M |
| Financing Cash Flow | -693.88M | -651.20M | -390.41M | -165.77M | -2.02M | -59.56M |
Epam Systems Technical Analysis
Negative
131.34
Price Trends
120.64
Negative
151.10
Negative
161.23
Negative
Market Momentum
-6.52
Negative
40.55
Neutral
80.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EPAM, the sentiment is Negative. The current price of 131.34 is above the 20-day moving average (MA) of 103.84, above the 50-day MA of 120.64, and below the 200-day MA of 161.23, indicating a bearish trend. The MACD of -6.52 indicates Negative momentum. The RSI at 40.55 is Neutral, neither overbought nor oversold. The STOCH value of 80.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EPAM.
Epam Systems Risk Analysis
Epam Systems disclosed 37 risk factors in its most recent earnings report. Epam Systems reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Epam Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $109.20B | 17.31 | 24.82% | 2.25% | 7.27% | 0.49% | |
73 Outperform | $24.79B | 11.05 | 14.79% | 1.46% | 6.55% | -3.10% | |
73 Outperform | $50.07B | 14.68 | 31.77% | 2.58% | 4.85% | 6.19% | |
71 Outperform | $5.42B | 10.72 | 22.44% | 1.41% | 6.47% | 10.82% | |
64 Neutral | $10.83B | 23.00 | 13.15% | ― | 9.58% | 14.11% | |
63 Neutral | $5.39B | 22.07 | 10.67% | ― | 14.21% | -2.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
EPAM
Epam Systems
102.69
-73.26
-41.64%
ACN
Accenture
179.24
-122.47
-40.59%
CACI
Caci International
501.35
39.73
8.61%
CTSH
Cognizant
52.75
-24.73
-31.92%
G
Genpact
31.91
-10.89
-25.44%
INFY
Infosys
12.67
-5.00
-28.28%
Epam Systems Corporate Events
Executive/Board Changes
EPAM Systems Grants Retention RSUs to Senior Executive
Positive
Apr 1, 2026
On March 31, 2026, EPAM Systems, Inc. granted restricted stock units valued at $3 million to Viktar Dvorkin, its Senior Vice President, Global Head of Advanced Engineering, Cloud Enterprise Platforms. The equity award, issued under the company...
Business Operations and StrategyFinancial Disclosures
EPAM Systems Showcases AI-Native Enterprise Transformation Strategy
Positive
Mar 12, 2026
EPAM Systems will hold its Investor Day on March 12, 2026, with CEO Balazs Fejes, CFO Jason Peterson and other leaders outlining a strategic transformation toward becoming a global leader in AI-native enterprise transformation services. The event,...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
EPAM Systems Announces $300 Million Share Repurchase Agreement
Positive
Mar 5, 2026
On March 4, 2026, EPAM Systems entered into a $300 million fixed-dollar accelerated share repurchase agreement with Morgan Stanley under its existing $1.0 billion buyback authorization, funding the transaction with cash on hand and borrowings unde...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.