EPAM Systems (NYSE:EPAM) Announces Quarterly Earnings Results

EPAM Systems (NYSE:EPAM) issued its earnings results on Thursday. The information technology services provider reported $3.38 earnings per share for the quarter, beating analysts’ consensus estimates of $3.16 by $0.22, FiscalAI reports. EPAM Systems had a return on equity of 15.84% and a net margin of 7.15%.The business had revenue of $1.41 billion during the quarter, compared to analyst estimates of $1.41 billion. During the same period in the previous year, the company posted $2.77 EPS. EPAM Systems’s revenue was up 4.6% on a year-over-year basis. EPAM Systems updated its FY 2026 guidance to 13.080-13.240 EPS and its Q3 2026 guidance to 3.380-3.460 EPS.

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

• Q2 results exceeded expectations: Revenue rose 4.5% year over year to $1.415 billion, while non-GAAP operating margin improved to 16.4% and non-GAAP EPS increased 22% to $3.38.
• AI momentum continued: AI-native revenue exceeded $160 million, representing more than 11% of total revenue and marking the sixth consecutive quarter of double-digit sequential growth; EPAM remains on track for its $600 million 2026 AI-native revenue target.
• North American growth is a major weakness: Americas revenue grew only 0.5%, and management expects very slow growth in the region during the second half as clients shift spending away from task-based services toward AI-led modernization and the company rebuilds its go-to-market capabilities.
• Full-year revenue guidance was reduced: EPAM now expects 2026 revenue growth of 3.2%-4.2%, or 2%-3% on an organic constant-currency basis, with Q3 growth expected to slow to roughly 1.7% at the midpoint and revenues projected to be flat from Q3 to Q4.
• Large AI-related deals remain unsigned: A growing pipeline of multi-year agentic managed services and application-maintenance opportunities is progressing with existing clients, but meaningful revenue contribution is now expected mainly in the first half of 2027 rather than late 2026.

EPAM Systems Stock Up 4.8%

Shares of EPAM stock traded up $4.45 during mid-day trading on Friday, hitting $97.52. 1,737,691 shares of the stock traded hands, compared to its average volume of 1,779,208. The stock has a market cap of $5.09 billion, a P/E ratio of 13.21, a P/E/G ratio of 0.88 and a beta of 1.39. The stock’s fifty day moving average is $91.11 and its two-hundred day moving average is $123.83. EPAM Systems has a 52-week low of $73.06 and a 52-week high of $222.53. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.75 and a quick ratio of 2.67.

Analysts Set New Price Targets

Several research analysts have issued reports on EPAM shares. Morgan Stanley set a $97.00 target price on shares of EPAM Systems in a report on Friday. Truist Financial lowered their price target on shares of EPAM Systems from $112.00 to $110.00 and set a “hold” rating for the company in a research report on Friday. Wells Fargo & Company dropped their price objective on shares of EPAM Systems from $151.00 to $125.00 and set an “overweight” rating on the stock in a research note on Friday, July 10th. TD Cowen cut their price objective on shares of EPAM Systems from $131.00 to $120.00 and set a “buy” rating on the stock in a report on Friday. Finally, The Goldman Sachs Group downgraded shares of EPAM Systems from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $215.00 to $110.00 in a research note on Friday, May 8th. Seven research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $125.13.

Key EPAM Systems News

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

• Positive Sentiment: EPAM reported second-quarter non-GAAP EPS of $3.38, above the $3.14–$3.16 analyst consensus, while revenue of $1.415 billion was approximately in line with expectations and increased 4.5% year over year. Non-GAAP operating margin expanded to 16.4% from 15.0%, and EPS rose 22% from the prior year. EPAM Reports Results for Second Quarter 2026
• Positive Sentiment: Full-year adjusted EPS guidance of $13.08 to $13.24 is above the roughly $12.53 consensus, and third-quarter EPS guidance of $3.38 to $3.46 also exceeds estimates. EPAM additionally repurchased $85 million of stock during the quarter, bringing year-to-date repurchases to $409 million. EPAM Q2 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: JPMorgan lowered its price target to $120 from $142 but retained an “overweight” rating. Susquehanna cut its target to $146 from $167 while maintaining a “positive” rating, and Needham reduced its target to $120 from $135 while keeping a “buy” rating. The revised targets still imply substantial potential appreciation from recent levels.
• Negative Sentiment: EPAM reduced its full-year revenue-growth outlook to 3.2%–4.2%, including 2.0%–3.0% organic constant-currency growth, reflecting weaker demand for software services. Reuters reported that the forecast cut triggered a sharp premarket selloff and remains the main investor concern. EPAM Cuts Annual Revenue Forecast on Weak Software Services Demand
• Negative Sentiment: Truist lowered its price target to $110 from $112 and assigned a “hold” rating, while William Blair downgraded EPAM from “outperform” to “market perform.” These actions reinforce caution around the company’s slower top-line growth.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the company. CYBER HORNET ETFs LLC acquired a new stake in EPAM Systems in the second quarter valued at approximately $27,000. Sunbelt Securities Inc. increased its position in shares of EPAM Systems by 4,233.3% during the fourth quarter. Sunbelt Securities Inc. now owns 130 shares of the information technology services provider’s stock worth $27,000 after purchasing an additional 127 shares in the last quarter. MUFG Securities EMEA plc acquired a new position in shares of EPAM Systems during the second quarter worth $30,000. 1248 Management LLC purchased a new stake in shares of EPAM Systems during the 4th quarter valued at $32,000. Finally, Atlas Capital Advisors Inc. purchased a new stake in shares of EPAM Systems during the 4th quarter valued at $35,000. Hedge funds and other institutional investors own 91.58% of the company’s stock.

About EPAM Systems

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.