EPAM Systems (NYSE:EPAM) Announces Quarterly Earnings Results

EPAM Systems (NYSE:EPAM) posted its quarterly earnings data on Thursday. The information technology services provider reported $3.51 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.41 by $0.10, Briefing.com reports. EPAM Systems had a net margin of 7.53% and a return on equity of 16.76%. The firm had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same quarter in the previous year, the firm posted $3.08 EPS. The business’s revenue for the quarter was up 2.3% compared to the same quarter last year.

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

• EPAM exceeded the high end of its Q3 outlook, with revenue up 2.3% year over year and organic constant-currency growth of 2.5%. Non-GAAP operating margin rose to 16.7%, and non-GAAP diluted EPS increased 14% to $3.51.
• AI-native revenue topped $185 million, or about 13% of total revenue, with the company raising its 2026 target from $600 million to at least $650 million. EPAM also signed three large, multiyear deals in financial services and energy, expected to begin ramping in 2027.
• EPAM announced plans to return at least 50% of free cash flow annually to shareholders in 2027–2029 and expects to enter a $500 million accelerated share repurchase agreement. The board authorized $1.8 billion in repurchases through 2029.
• Growth remains uneven: software and high tech, consumer goods/retail/travel, and business information and media declined in Q3, while North America is expected to continue underperforming in Q4. Q4 organic constant-currency growth is forecast at 0.5%–1.6%, and management said a return to double-digit growth is not expected in 2027.
• Management expects 2027 non-GAAP operating margin of 15%–16% and cautioned that gross margin may be modestly lower, citing reduced benefits from Poland’s R&D tax incentive and normalizing variable compensation. The company plans continued investment in AI capabilities and go-to-market efforts.

EPAM Systems Price Performance

Shares of EPAM traded down $6.87 during midday trading on Friday, hitting $158.83. The company’s stock had a trading volume of 3,339,845 shares, compared to its average volume of 1,262,095. The company has a quick ratio of 2.75, a current ratio of 2.76 and a debt-to-equity ratio of 0.01. EPAM Systems has a one year low of $73.06 and a one year high of $222.53. The stock has a market capitalization of $8.19 billion, a price-to-earnings ratio of 19.85, a price-to-earnings-growth ratio of 1.66 and a beta of 1.28. The company’s fifty day simple moving average is $121.86 and its two-hundred day simple moving average is $121.40.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on EPAM shares. Wells Fargo & Company raised their target price on shares of EPAM Systems from $156.00 to $176.00 and gave the stock an “overweight” rating in a report on Friday. Truist Financial boosted their price target on EPAM Systems from $110.00 to $150.00 and gave the company a “hold” rating in a research note on Friday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $85.00 price target on shares of EPAM Systems in a research report on Friday, July 10th. Wedbush increased their price target on EPAM Systems from $99.00 to $160.00 and gave the stock a “neutral” rating in a research report on Friday. Finally, Stifel Nicolaus set a $135.00 price objective on EPAM Systems in a research note on Thursday, August 6th. Six investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company’s stock. Based on data from MarketBeat, EPAM Systems currently has an average rating of “Hold” and an average price target of $143.73.

EPAM Systems News Summary

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

• Positive Sentiment: Third-quarter non-GAAP EPS of $3.51 topped the $3.41 consensus, and revenue of $1.426 billion exceeded estimates of $1.42 billion, rising 2.3% year over year. EPAM also raised its 2026 outlook, forecasting full-year non-GAAP EPS of $13.23–$13.31 and revenue growth of 3.5%–3.7%. EPAM Reports Results for Third Quarter 2026
• Positive Sentiment: EPAM expanded its remaining share-repurchase authorization to $1.8 billion, plans a $500 million accelerated repurchase, and committed to return at least 50% of free cash flow to shareholders annually from 2027 through 2029. It also lifted its 2026 AI-native revenue target to $650 million. EPAM shareholder-return and AI revenue plans
• Positive Sentiment: Several firms raised price targets after the results. Susquehanna lifted its target to $190 with a positive rating, while Wells Fargo raised its target to $176 and maintained an overweight rating. Susquehanna recommendations
• Neutral Sentiment: Revenue growth remains in the low single digits, which may temper enthusiasm despite the earnings beat and improved outlook. Analyst views are also mixed: Truist kept a hold rating and Wedbush a neutral rating after raising their targets. EPAM 2026 earnings guidance

About EPAM Systems

EPAM Systems, Inc is a global digital engineering and technology services company that helps organizations design, develop and modernize software and digital platforms. Its services support digital transformation initiatives across industries, including financial services, healthcare, life sciences, retail, travel and consumer products.

The company provides software engineering, product development, consulting, cloud services, data and analytics, artificial intelligence, cybersecurity, quality assurance and platform engineering.