Epam Systems (EPAM)
NYSE:EPAM
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Epam Systems
(NYSE:EPAM)
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Rating:68Neutral
Price Target:
$84.00
▼(-36.04% Downside)
Action:Reiterated
Date:06/19/26
The score is supported by strong financial stability (low leverage) and attractive valuation (low P/E), plus constructive operational progress and AI momentum from the earnings call. It is held back primarily by very weak technicals (price far below key moving averages with bearish momentum) and near-term execution/cash-flow visibility risks (negative Q1 cash flow and higher DSO alongside lowered revenue growth guidance).
Positive Factors
Low leverage / strong balance sheet
Low leverage and sizeable equity provide durable financial flexibility: ability to fund investments, weather revenue timing shocks, pursue M&A or return capital without stressing liquidity. This underpinning reduces solvency risk and supports multi-quarter strategic initiatives and buybacks.
Negative Factors
Margin compression vs. prior years
Sustained margin compression versus earlier peaks suggests weaker structural earnings power; pressures include staffing mix, wage inflation, and lower realized rates. Persistently lower margins would reduce operating leverage and limit long-term free cash flow and return-on-equity potential.
Read all positive and negative factors
Positive Factors
Negative Factors
Low leverage / strong balance sheet
Low leverage and sizeable equity provide durable financial flexibility: ability to fund investments, weather revenue timing shocks, pursue M&A or return capital without stressing liquidity. This underpinning reduces solvency risk and supports multi-quarter strategic initiatives and buybacks.
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
$4.00B
Dividend YieldN/A
Average Volume (3M)2.29M
Price to Earnings (P/E)10.7
Beta (1Y)1.09
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. Volume1,460,451
30 Day Avg. Volume2,287,773
Financial Highlights & Ratios
PEG Ratio-2.05
Price to Book (P/B)3.11
Price to Sales (P/S)2.10
P/FCF Ratio18.69
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit2.47
Enterprise Value/Ebitda5.65
Forecast
1Y Price Target
$138.85Price Target Upside5.72% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)13.06
Revenue Forecast (FY)$5.73B
Epam Systems Business Overview & Revenue Model
Company Description
EPAM Systems, Inc. is a leading global provider of comprehensive digital platform engineering and software development solutions. The company's extensive service portfolio includes: Engineering Services: From initial requirements analysis and stra...
How the Company Makes Money
EPAM primarily makes money by providing contracted services to business customers (B2B) and recognizing revenue from time-and-materials (T&M) and fixed-price project arrangements for software engineering, consulting, and managed/ongoing delivery w...
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 | 677.86M | 630.43M | 711.52M | 659.86M | 647.31M | 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
106.58
Negative
130.07
Negative
155.00
Negative
Market Momentum
-5.62
Positive
23.18
Positive
11.98
Positive
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 97.00, above the 50-day MA of 106.58, and below the 200-day MA of 155.00, indicating a bearish trend. The MACD of -5.62 indicates Positive momentum. The RSI at 23.18 is Positive, neither overbought nor oversold. The STOCH value of 11.98 is Positive, 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $20.71B | 9.35 | 14.79% | 1.46% | 6.55% | -3.10% | |
74 Outperform | $78.57B | 10.01 | 24.82% | 2.25% | 6.74% | -0.66% | |
71 Outperform | $4.79B | 8.45 | 22.44% | 1.41% | 6.47% | 10.82% | |
71 Outperform | $45.24B | 14.40 | 31.77% | 2.58% | 4.85% | 6.19% | |
68 Neutral | $4.00B | 10.66 | 10.67% | ― | 14.21% | -2.92% | |
64 Neutral | $10.30B | 19.16 | 13.15% | ― | 9.58% | 14.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
EPAM
Epam Systems
76.64
-91.37
-54.38%
ACN
Accenture
127.98
-159.52
-55.49%
CACI
Caci International
466.42
8.81
1.93%
CTSH
Cognizant
43.70
-31.43
-41.84%
G
Genpact
28.25
-12.50
-30.67%
INFY
Infosys
10.57
-6.98
-39.77%
Epam Systems Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
EPAM Systems Shareholders Back Equity Plans and Governance Changes
Positive
May 26, 2026
On May 21, 2026, EPAM Systems held its 2026 Annual Meeting of Stockholders, where investors approved sizeable increases to the company’s equity-based compensation plans, adding up to 4,000,000 additional shares to the 2025 Long Term Incentiv...
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...
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.