EPAM Systems (NYSE:EPAM) Posts Quarterly Earnings Results, Beats Expectations By $0.10 EPS

EPAM Systems (NYSE:EPAM) released its earnings results on Thursday. The information technology services provider reported $3.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.16 by $0.10, Briefing.com reports. The company had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.39 billion. EPAM Systems had a net margin of 7.01% and a return on equity of 13.16%. The company’s revenue was up 12.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $2.84 EPS. EPAM Systems updated its FY 2026 guidance to 12.600-12.900 EPS and its Q1 2026 guidance to 2.700-2.780 EPS.

Here are the key takeaways from EPAM Systems’ conference call:

• EPAM beat expectations in Q4 with $1.4B revenue (+12.8% reported, +5.6% organic), strong operating cash flow ($283M in Q4; $613M free cash flow for 2025) and active share buybacks (≈$661M in 2025), supporting capital returns.
• Management highlighted accelerating AI-native momentum — >$105M of pure AI-native revenue in Q4 and a target to scale AI-native revenues to in excess of $600M in 2026 (company uses a tight definition that excludes foundational/AI-assisted work).
• 2026 guidance is modest/cautious: reported revenue growth of 4.5%–7.5% (organic 3%–6% after ~1.5% FX tailwind), non‑GAAP operating margin of 15%–16%, and non‑GAAP EPS of $12.60–$12.90, assuming continued Ukraine delivery productivity.
• A headwind from NEORIS’s largest client (sequential mid-single-digit decline into Q1) is expected to shave about 1 percentage point off 2026 organic growth, and longer procurement cycles for large AI programs may delay revenue realization into later quarters.

EPAM Systems Stock Performance

Shares of EPAM Systems stock traded down $35.98 during midday trading on Thursday, hitting $131.71. The company had a trading volume of 2,908,637 shares, compared to its average volume of 981,885. EPAM Systems has a 1-year low of $128.78 and a 1-year high of $241.04. The business’s 50 day simple moving average is $203.12 and its two-hundred day simple moving average is $178.98. The stock has a market cap of $7.28 billion, a PE ratio of 20.08, a P/E/G ratio of 1.94 and a beta of 1.72. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.02 and a quick ratio of 3.02.

Analyst Ratings Changes

Several research firms have commented on EPAM. Truist Financial began coverage on shares of EPAM Systems in a research report on Tuesday, January 6th. They issued a “hold” rating and a $220.00 target price for the company. Zacks Research lowered EPAM Systems from a “strong-buy” rating to a “hold” rating in a report on Wednesday, January 28th. Citigroup lifted their price target on shares of EPAM Systems from $170.00 to $225.00 and gave the company a “neutral” rating in a research report on Thursday, January 29th. TD Cowen restated a “buy” rating on shares of EPAM Systems in a research note on Friday, January 9th. Finally, JPMorgan Chase & Co. raised their target price on shares of EPAM Systems from $201.00 to $215.00 and gave the company an “overweight” rating in a research note on Friday, November 7th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $214.20.

Insiders Place Their Bets

In other news, SVP Boris Shnayder sold 5,000 shares of the business’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $207.00, for a total transaction of $1,035,000.00. Following the transaction, the senior vice president owned 15,645 shares in the company, valued at approximately $3,238,515. The trade was a 24.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 4.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On EPAM Systems

Several institutional investors and hedge funds have recently added to or reduced their stakes in EPAM. CYBER HORNET ETFs LLC bought a new stake in shares of EPAM Systems in the 2nd quarter worth approximately $27,000. MUFG Securities EMEA plc bought a new stake in shares of EPAM Systems during the second quarter valued at approximately $30,000. 1248 Management LLC acquired a new position in shares of EPAM Systems in the fourth quarter valued at $32,000. Atlas Capital Advisors Inc. bought a new position in EPAM Systems in the fourth quarter worth $35,000. Finally, Transamerica Financial Advisors LLC lifted its position in EPAM Systems by 148.2% in the fourth quarter. Transamerica Financial Advisors LLC now owns 278 shares of the information technology services provider’s stock worth $57,000 after purchasing an additional 166 shares during the period. 91.58% of the stock is currently owned by institutional investors.

More EPAM Systems News

Here are the key news stories impacting EPAM Systems this week:

• Positive Sentiment: Q4 beats — EPAM reported adjusted EPS of $3.26 vs. consensus ~$3.16 and revenue of $1.408B (up 12.8% YoY), showing double‑digit growth that beat expectations. EPAM Systems Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Upbeat EPS guidance — EPAM raised FY‑2026 EPS guidance to $12.60–$12.90 (above consensus) and Q1 EPS to $2.70–$2.78, suggesting continued margin/earnings strength even as revenue guidance was roughly in line with Street expectations. EPAM Reports Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: AI demand tailwind — Company commentary and analyst notes point to AI‑driven demand across key sectors, which supports secular revenue growth and helps justify the higher EPS outlook. EPAM Systems Q4 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Strategic moves — EPAM is repositioning India as a co‑innovation hub for life sciences/healthcare, a longer‑term operating positive but not an immediate catalyst. EPAM repositions India as co-innovation hub for life sciences, healthcare
• Neutral Sentiment: Take‑private chatter — Some commentaries flag EPAM as a depressed stock that could attract buyout interest; that’s speculative and not an immediate driver. Why These 5 Depressed Stocks Are Flashing Classic Take-Private Signals in 2026
• Negative Sentiment: Investor reaction and guidance concerns — Despite beats, shares fell sharply post‑release; coverage notes investors were disappointed by aspects of the guidance language and forward clarity, prompting heavy selling and a slide toward a 52‑week low. EPAM Systems Stock Sinks To 52-Week Low – Here’s Why
• Negative Sentiment: Technical pressure — Volume spiked well above average on the sell‑off and the stock has moved below key moving averages, increasing the risk of further downside until sentiment stabilizes. EPAM Systems Stock Down 21.5%

EPAM Systems Company Profile

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM’s offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.