EPAM Systems (NYSE:EPAM) Stock Falls 5.8% – What’s Next?

EPAM Systems, Inc. (NYSE:EPAM)’s share price was down 5.8% during trading on Tuesday. The company traded as low as $134.79 and last traded at $135.5250. 65,074 shares were traded during trading, a decline of 96% from the average daily volume of 1,448,074 shares. The stock had previously closed at $143.80.

EPAM Systems News Summary

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

• Positive Sentiment: EPAM reported third-quarter revenue of $1.426 billion, up 2.3% year over year, and non-GAAP diluted EPS of $3.51, above the $3.41 consensus estimate. GAAP operating margin increased to 12.3% from 10.4%, while non-GAAP operating margin rose to 16.7% from 16.0%. Read More.
• Positive Sentiment: The company raised its 2026 outlook, forecasting revenue growth of 3.5%–3.7% and non-GAAP diluted EPS of $13.23–$13.31. Stronger guidance suggests management sees improved performance ahead. Read More.
• Positive Sentiment: EPAM increased its remaining share-repurchase authorization to $1.8 billion, plans a $500 million accelerated buyback, and committed to returning at least 50% of free cash flow to shareholders annually from 2027 through 2029. Buybacks can support shareholder returns and signal confidence in the business. Read More.
• Positive Sentiment: Needham raised its price target to $200 from $120 and reiterated a Buy rating, adding a bullish analyst view following the results. Read More.
• Negative Sentiment: Morgan Stanley raised its target to $140 from $97 but maintained an Equal Weight rating; that target is below the quoted share price and points to a more cautious view. Read More.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on EPAM shares. Morgan Stanley raised their price objective on EPAM Systems from $97.00 to $140.00 and gave the company an “equal weight” rating in a research note on Wednesday. Stifel Nicolaus set a $135.00 target price on EPAM Systems in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $85.00 target price on shares of EPAM Systems in a report on Friday, July 10th. Needham & Company LLC lifted their price target on shares of EPAM Systems from $120.00 to $200.00 and gave the company a “buy” rating in a report on Thursday. Finally, Guggenheim upped their price objective on shares of EPAM Systems from $140.00 to $160.00 and gave the stock a “buy” rating in a research report on Monday. Six investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $130.73.

EPAM Systems Trading Up 21.9%

The business has a fifty day simple moving average of $119.78 and a 200-day simple moving average of $121.86. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.75 and a current ratio of 2.75. The firm has a market cap of $8.64 billion, a price-to-earnings ratio of 22.69, a PEG ratio of 1.44 and a beta of 1.28.

EPAM Systems (NYSE:EPAM) last posted its earnings results on Thursday, August 6th. The information technology services provider reported $3.38 EPS for the quarter, beating the consensus estimate of $3.16 by $0.22. The firm had revenue of $1.41 billion during the quarter, compared to the consensus estimate of $1.41 billion. EPAM Systems had a return on equity of 15.84% and a net margin of 7.15%. The business’s quarterly revenue was up 4.6% on a year-over-year basis. During the same period last year, the company earned $2.77 earnings per share. As a group, equities analysts forecast that EPAM Systems, Inc. will post 10.47 earnings per share for the current fiscal year.

Hedge Funds Weigh In On EPAM Systems

Several large investors have recently modified their holdings of EPAM. University of Texas Texas AM Investment Management Co. boosted its stake in EPAM Systems by 236.2% during the 3rd quarter. University of Texas Texas AM Investment Management Co. now owns 232 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 163 shares during the last quarter. Financial Management Professionals Inc. increased its holdings in EPAM Systems by 47.3% during the 3rd quarter. Financial Management Professionals Inc. now owns 268 shares of the information technology services provider’s stock worth $29,000 after purchasing an additional 86 shares in the last quarter. Signaturefd LLC increased its holdings in EPAM Systems by 1,068.3% during the 2nd quarter. Signaturefd LLC now owns 479 shares of the information technology services provider’s stock worth $38,000 after purchasing an additional 438 shares in the last quarter. Elevation Wealth Partners LLC raised its stake in shares of EPAM Systems by 94.1% in the third quarter. Elevation Wealth Partners LLC now owns 493 shares of the information technology services provider’s stock worth $53,000 after purchasing an additional 239 shares during the last quarter. Finally, Global Retirement Partners LLC purchased a new stake in shares of EPAM Systems in the second quarter worth approximately $43,000. Institutional investors own 91.58% of the company’s stock.

EPAM Systems Company Profile

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.