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Jupiter Topco LLC bought a new stake in shares of EPAM Systems, Inc. (NYSE:EPAM – Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund bought 24,265 shares of the information technology services provider’s stock, valued at approximately $1,925,000.

Several other hedge funds and other institutional investors also recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in EPAM Systems in the second quarter worth about $526,684,000. Boston Partners purchased a new position in shares of EPAM Systems during the 4th quarter worth approximately $349,428,000. Capital World Investors raised its position in shares of EPAM Systems by 59.4% in the 4th quarter. Capital World Investors now owns 3,679,590 shares of the information technology services provider’s stock worth $753,874,000 after acquiring an additional 1,371,557 shares in the last quarter. Norges Bank bought a new position in shares of EPAM Systems in the 4th quarter worth approximately $147,870,000. Finally, Price T Rowe Associates Inc. MD lifted its stake in shares of EPAM Systems by 849.3% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 784,101 shares of the information technology services provider’s stock valued at $160,649,000 after purchasing an additional 701,500 shares during the period. Hedge funds and other institutional investors own 91.58% of the company’s stock.

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

Positive Sentiment: Analysts raised forward earnings estimates. Zacks Research increased its FY2027 EPS forecast to $11.03 from $10.96 and its FY2028 estimate to $11.90 from $11.82. It also made smaller upward revisions to quarterly forecasts through 2028, suggesting modestly improved expectations for EPAM’s profitability. EPAM Systems FY2026 EPS Estimate Boosted by Zacks Research Positive Sentiment: Value-investing appeal is supporting sentiment. Zacks highlighted EPAM as a strong value stock based on its Style Scores. EPAM’s reported financial profile includes a low debt-to-equity ratio of 0.01, a price-to-earnings ratio of 16.28, and a PEG ratio of 1.19, factors that may appeal to investors seeking relatively inexpensive growth. Here’s Why EPAM Is a Strong Value Stock Positive Sentiment: Potential share buyback catalyst. An investment thesis argues that activist investor Engine Capital could push EPAM to use approximately $750 million for share repurchases. At depressed valuation levels, a buyback could reduce the share count and increase per-share earnings, provided management proceeds with the plan. The thesis also notes that AI-native revenue exceeds 11% of EPAM’s business and is growing sequentially. EPAM Systems: AI Is Eating The Old Business, But 8.7x Earnings Is Too Cheap Neutral Sentiment: EPAM recently exceeded quarterly EPS expectations, reporting $3.38 versus the $3.16 consensus, although revenue of $1.41 billion was broadly in line with forecasts. Revenue increased 4.6% year over year, indicating improvement but not strong top-line acceleration. Negative Sentiment: AI disruption remains a risk. AI adoption may cannibalize EPAM’s legacy services and create near-term revenue pressure. Flat revenue growth could limit the upside from margin expansion and cost controls if demand for traditional technology consulting weakens. EPAM Systems Stock Up 2.5% Shares of EPAM Systems stock opened at $120.17 on Friday. 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 stock has a market capitalization of $6.20 billion, a PE ratio of 16.28, a price-to-earnings-growth ratio of 1.20 and a beta of 1.38. EPAM Systems, Inc. has a 52-week low of $73.06 and a 52-week high of $222.53. The company has a 50-day simple moving average of $97.93 and a two-hundred day simple moving average of $111.19. EPAM Systems (NYSE:EPAM – Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The information technology services provider reported $3.38 EPS for the quarter, beating analysts’ consensus estimates of $3.16 by $0.22. The firm had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.41 billion. EPAM Systems had a net margin of 7.15% and a return on equity of 15.84%. The business’s revenue for the quarter was up 4.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.77 earnings per share. EPAM Systems has set its FY 2026 guidance at 13.080-13.240 EPS and its Q3 2026 guidance at 3.380-3.460 EPS. On average, analysts anticipate that EPAM Systems, Inc. will post 10.47 EPS for the current fiscal year.

Wall Street Analyst Weigh In EPAM has been the topic of several research reports. Morgan Stanley set a $97.00 price target on EPAM Systems in a research report on Friday, August 7th. Citigroup decreased their price objective on EPAM Systems from $112.00 to $100.00 and set a “neutral” rating for the company in a report on Monday, July 27th. Wells Fargo & Company lowered their price objective on EPAM Systems from $151.00 to $125.00 and set an “overweight” rating for the company in a research report on Friday, July 10th. Weiss Ratings restated a “sell (d+)” rating on shares of EPAM Systems in a report on Tuesday, August 4th. Finally, Guggenheim reduced their target price on shares of EPAM Systems from $165.00 to $140.00 and set a “buy” rating on the stock in a research report on Monday, August 10th. Six investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, EPAM Systems has a consensus rating of “Hold” and a consensus target price of $116.47.

Get Our Latest Analysis on EPAM Systems

EPAM Systems Company Profile (Free Report)

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.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

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Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

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Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Epam (EPAM - Free Report) Headquartered in Newtown, PA, EPAM Systems is well known for its software engineering and IT consulting services. The company provides software product development services, custom application development services, application testing services, application maintenance and support services, infrastructure management services and enterprise information management services.

EPAM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.91; value investors should take notice.

Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $13.15 per share. EPAM boasts an average earnings surprise of +4.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EPAM should be on investors' short list.

NEW YORK--(BUSINESS WIRE)--Engine Capital LP (together with its affiliates, “Engine”), which owns approximately 1.5% of the outstanding shares of common stock of EPAM Systems, Inc. (NYSE: EPAM) (the “Company”), today announced that it has delivered a letter to the Company's Board of Directors.The full text of Engine's letter to the Company can be viewed here.About Engine CapitalEngine Capital LP is a value-oriented special situations fund that invests both actively and passively in companies und.

The partnership combines Wiz's production-grade cloud and AI security platform with EPAM's AI-native engineering and modernization capabilities to help organizations move from risk visibility to remediation across complex multi-cloud environments.

, /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM) today announced a collaboration with Wiz, a cloud and AI security leader that is now part of Google Cloud. EPAM joined the Wiz Partner Alliance to help organizations turn cloud risk intelligence into continuous, AI-powered and engineering-led remediation across complex multi-cloud environments.

Learn more about EPAM's AI-Native Cyber Resilience Program

EPAM Partners with Wiz to Help Enterprises Reduce Cloud Risk and Strengthen Cyber Resilience. The partnership brings together Wiz's AI Application Protection Platform (AI-APP) with EPAM's AI-native engineering and cloud modernization capabilities. Together, Wiz's context-based risk intelligence and EPAM's engineering expertise will help organizations identify, prioritize and address critical risks across applications, infrastructure and operating environments, moving beyond risk detection to address root causes at enterprise scale.

"Cloud security does not end with identifying risk, as organizations need the engineering capability to act on that intelligence across complex applications and infrastructure," said Alexandros Katsioulis, Head of Alphabet Business and Google Global Business Group, EPAM. "By combining Wiz's contextual risk intelligence with EPAM's engineering and modernization expertise, we help clients address root causes, strengthen operational resilience and move forward with cloud and AI transformation more confidently."

Powered by the Wiz Security Graph, Wiz AI-APP provides a contextualized view of cloud assets, configurations, relationships and attack paths across code, cloud, runtime, AI applications, SaaS and custom-hosted environments. EPAM applies that intelligence within broader cloud modernization and security programs to help organizations operationalize a full cloud security loop across Google Cloud, AWS, Microsoft Azure and other cloud environments.

The collaboration formalizes work already underway in the market, with EPAM delivering Wiz implementation programs for enterprise organizations across a range of industry verticals, including media and entertainment, transportation and logistics, life sciences and healthcare, financial services, automotive and retail and consumer goods. The expanded relationship as part of the Wiz Partner Alliance will bring that delivery experience across to a broader set of cloud transformation and security initiatives.

"With cloud and AI driving the next wave of enterprise innovation, Wiz is dedicated to helping organizations build fast without compromising security," said Nick Ross, VP of EMEA & LATAM Channels & Alliances at Wiz. "EPAM brings valuable expertise to the Wiz Partner Alliance, and together, we'll help ensure our customers can scale securely in the cloud."

As part of this approach, EPAM will leverage findings from the Wiz platform to inform application modernization, cloud architecture and remediation work. White Hat, an EPAM company, will add an offensive-security layer with defensive, offensive and incident response experts to assess whether identified weaknesses can be exploited, helping clients distinguish potential exposure from actual risks that require immediate engineering action.

"Security should not be measured by the number of vulnerabilities found. It should be measured by the reduction of exploitable risk," said Eugene Dzihanau, Head of Cybersecurity Practice, EPAM. "Wiz provides the system of record for security risk and EPAM provides the operating model that continuously drives that risk down. Together, we help clients move from visibility to remediation and from remediation to sustained cyber resilience."

Additionally, Wiz's AI agents extend the platform's established cloud security capabilities with an automated workflow layer that helps organizations accelerate key stages of the security lifecycle:

Red Agent helps validate potentially exploitable paths across the external attack surface. Green Agent supports root-cause remediation. Blue Agent helps investigate runtime threats and assess potential impact. Alongside implementing Wiz internally, EPAM will integrate these capabilities into broader engineering and modernization programs, helping organizations move more efficiently from risk evidence to corrective action.

"Identifying a vulnerability is not the same as proving that it can be exploited or containing an attack once someone has already exploited the vulnerability," said Aviv Srour, Head of Cyber Innovation, EPAM. "Wiz Red Agent brings an attacker's view of the external attack surface, while EPAM and White Hat bring the red team and incident response depth to validate it against real adversary tactics, techniques and procedures and strengthen cyber resilience for clients."

Learn more about EPAM's AI-Native Cyber Resilience Program and how to develop a cyber strategy for your organization today.

About EPAM Systems, Inc.
EPAM (NYSE:EPAM) is a global leader in AI transformation engineering and integrated consulting, serving Forbes Global 2000 companies and ambitious startups. With over thirty years of expertise in custom software, product and platform engineering, EPAM empowers organizations to become AI-Native enterprises, driving measurable value from innovation and digital investments. Recognized by industry benchmarks and leading analysts as a leader in AI, EPAM delivers globally while engaging locally, making the future real for clients, partners, and employees.

We are proud to be recognized by Forbes, Glassdoor, Newsweek, Time Magazine, Great Place to Work and kununu as a Most Loved Workplace around the world.

Learn more at www.epam.com and follow us on LinkedIn.

Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade, and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

SOURCE EPAM Systems, Inc.

On August 21, 2026, EPAM Systems Inc (EPAM) shares rose 3.4% to a current price of $110.34, reflecting a strong recovery in recent weeks, as the stock has incre

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

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It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Epam (EPAM - Free Report) Headquartered in Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.

EPAM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.67; value investors should take notice.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $13.10 per share. EPAM boasts an average earnings surprise of +4.2%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EPAM should be on investors' short list.

Why These 3 Tech Stocks Could Be the Best Opportunities You're OverlookingEPAM Systems NYSE: EPAM reported second-quarter 2026 revenue growth that reached the high end of its outlook range, while raising its profitability expectations for the full year. However, the company lowered its revenue outlook as it expects slower growth in North America and delayed contributions from larger AI-related opportunities.

Revenue for the quarter was $1.415 billion, up 4.5% from a year earlier and 3.4% on an organic constant-currency basis. CEO and President Balazs Fejes said the company’s AI-native revenue exceeded $160 million, representing its sixth consecutive quarter of double-digit sequential growth. AI-native revenue accounted for more than 11% of EPAM’s business, according to management.

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Buyback Accelerators: 3 Stocks Boosting Capacity & Spending Speed“The gap between AI experimentation, adoption, and optimization is EPAM’s opportunity,” Fejes said, describing demand for modernization, data engineering, cybersecurity and other foundational work needed before enterprises can deploy AI at scale.

Profitability Improves as AI Revenue Expands EPAM said GAAP income from operations rose 20.4% year over year to $152 million, or 10.8% of revenue. Non-GAAP operating income increased 14.7% to $233 million, or 16.4% of revenue.

Market Got It Wrong—Why Progress Software Deserves a Second LookGAAP diluted earnings per share increased 26.3% to $1.97, while non-GAAP diluted EPS rose 22% to $3.38. GAAP gross margin was 30.4%, compared with 28.8% in the prior-year quarter, and non-GAAP gross margin improved to 32% from 30.1%.

Chief Financial Officer Jason Peterson said the company benefited from price increases implemented earlier in the year, improved profitability on fixed-fee work and cost-efficiency efforts. He said EPAM expects gross margin above 32% in each of the third and fourth quarters.

Financial services was EPAM’s fastest-growing industry vertical, with revenue rising 11.5% year over year, supported by insurance and asset-management clients in both the Americas and EMEA. Life sciences and healthcare revenue increased 8%, while emerging verticals grew 4.9%, led by energy and manufacturing.

Consumer goods, retail and travel revenue rose 2.3%. Software and high tech revenue declined 1.3%, primarily because of a large client-program ramp-down and shifting client priorities. Business information and media revenue fell 2.1% as several client projects were completed.

North America Growth Falls Short of Expectations The Americas, which represented 57% of second-quarter revenue, grew just 0.5% year over year. In contrast, EMEA, representing 41% of revenue, grew 10.9%, or 9.4% in constant currency. APAC revenue, which accounted for 2% of revenue, declined 0.3%.

Fejes said North America is “not growing fast enough” and acknowledged that EPAM’s go-to-market operations in the region have not performed at the required level. The company has begun a multi-quarter commercial transformation focused on prioritizing large accounts, developing new-logo pipeline management, expanding sales capabilities and improving training.

Management said North American clients are shifting spending away from task-based services, including manual testing, user experience and JavaScript front-end engineering, toward AI-led modernization. In software and high tech, particularly among SaaS clients, some spending has also moved toward tokens, graphics processing units and other infrastructure needs.

Fejes said the transition is occurring faster than replacement AI work is being ramped, creating a growth gap. He said EPAM has the delivery capabilities to address demand but needs stronger business-development and commercial capabilities in North America.

Large AI Opportunities Expected to Contribute in 2027 EPAM said it is developing a pipeline of larger, multiyear AI opportunities with existing clients, including agentic managed services and application-maintenance work. None of the opportunities had been signed as of the call, and management said it now expects meaningful revenue contribution from them to begin in the first half of 2027 rather than the second half of 2026.

The company said several potential large deals are in regulated sectors, including financial services, banking and insurance. Management also cited progress in vendor-consolidation opportunities and AI-supported modernization programs using EPAM intellectual property.

EPAM continues to invest in AI partnerships and training. During the quarter, it joined the OpenAI Partner Network as an advanced partner and committed to certify more than 5,000 OpenAI consultants and train more than 10,000 specialists in the first year. The company also said it had certified more than 2,000 employees under Google’s Gemini Enterprise program and more than 5,700 engineers under Anthropic’s certification program.

Outlook Revised for Slower Second-Half Revenue Growth For full-year 2026, EPAM now expects reported revenue growth of 3.2% to 4.2%, including an estimated 1.2% positive foreign-exchange impact. Organic constant-currency growth is projected at 2% to 3%.

GAAP operating margin is expected to be 10.5% to 11%. Non-GAAP operating margin is expected to be 15.5% to 16%. GAAP diluted EPS is projected at $8.22 to $8.38. Non-GAAP diluted EPS is projected at $13.08 to $13.24. For the third quarter, EPAM forecast revenue of $1.410 billion to $1.425 billion, representing 1.7% year-over-year growth at the midpoint. The outlook implies 1.8% organic constant-currency growth at the midpoint. The company expects modest sequential revenue growth in the third quarter followed by roughly flat revenue from the third to fourth quarter.

Cash flow from operations was negative $2 million in the second quarter, compared with positive $53 million a year earlier, while free cash flow was negative $18 million. Peterson attributed the decline partly to variable compensation payments and payments from clients that were expected late in the quarter but arrived in early July. Days sales outstanding increased to 82 days from 76 days in the first quarter.

EPAM ended the quarter with about $800 million in cash and cash equivalents. It repurchased approximately 1.3 million shares during the quarter and said it has returned about $1.6 billion to shareholders since starting its repurchase program.

About EPAM Systems (NYSE:EPAM)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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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EPAM Systems, Inc. (EPAM) Q2 2026 Earnings Call Transcript

Epam (EPAM - Free Report) came out with quarterly earnings of $3.38 per share, beating the Zacks Consensus Estimate of $3.14 per share. This compares to earnings of $2.77 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +7.64%. A quarter ago, it was expected that this information technology services provider would post earnings of $2.75 per share when it actually produced earnings of $2.86, delivering a surprise of +4%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Epam, which belongs to the Zacks Computers - IT Services industry, posted revenues of $1.41 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.52%. This compares to year-ago revenues of $1.35 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Epam shares have lost about 46.4% since the beginning of the year versus the S&P 500's gain of 12.8%.

What's Next for Epam?While Epam has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Epam was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.46 on $1.45 billion in revenues for the coming quarter and $13.08 on $5.73 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computers - IT Services is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, AIB Data Centers Inc. (AIB - Free Report) , has yet to report results for the quarter ended June 2026.

This company is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +99.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

AIB Data Centers Inc.'s revenues are expected to be $3.56 million, up 4985.7% from the year-ago quarter.

Second quarter revenues of $1.415 billion, up 4.5% year-over-year Second quarter GAAP income from operations increased to 10.8% of revenues from 9.3%, and non-GAAP income from operations increased to 16.4% of revenues from 15.0%, on a year-over-year basis Second quarter GAAP diluted EPS of $1.97, an increase of $0.41, or 26.3%, and non-GAAP diluted EPS of $3.38, an increase of $0.61, or 22.0%, on a year-over-year basis Continued to return capital to shareholders, spending $85 million in the second quarter on share repurchases and $409 million since the beginning of the year For the full year, EPAM now expects the year-over-year revenue growth rate to be in the range of 3.2% to 4.2% and now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 2.0% to 3.0% For the full year, EPAM now expects its GAAP diluted EPS to be in the range of $8.22 to $8.38, and non-GAAP diluted EPS to be in the range of $13.08 to $13.24 , /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital and AI transformation company, today announced results for its second quarter ended June 30, 2026.

EPAM reports results for second quarter 2026 "Our second quarter results came in better than expected with continued AI-native momentum and ongoing profitability improvement, reflecting solid execution against our multi-year strategy," said Balazs Fejes, CEO & President, EPAM. "As we continue to expand our strategic partnerships and leverage our 30+ years of engineering DNA to build the next generation forward-deployed engineering organization, our conviction in the strategy, the team and our commercial transformation is high."

Second Quarter 2026 Highlights

Revenues increased to $1.415 billion, a year-over-year increase of $61.3 million, or 4.5%. On an organic constant currency basis, revenues were up 3.4% compared to the second quarter of 2025; GAAP income from operations was $152.2 million, an increase of $25.7 million, or 20.4%, compared to $126.5 million in the second quarter of 2025; Non-GAAP income from operations was $232.7 million, an increase of $29.8 million, or 14.7%, compared to $202.9 million in the second quarter of 2025; Diluted earnings per share ("EPS") on a GAAP basis was $1.97, an increase of $0.41, or 26.3%, compared to $1.56 in the second quarter of 2025; and Non-GAAP diluted EPS was $3.38, an increase of $0.61, or 22.0%, compared to $2.77 in the second quarter of 2025. Cash Flow and Other Metrics

Cash used in operating activities was $38.8 million for the first six months of 2026, compared to cash provided by operating activities of $77.4 million for the first six months of 2025; Cash, cash equivalents and restricted cash totaled $794.3 million as of June 30, 2026, a decrease of $507.1 million, or 39.0%, from $1.301 billion as of December 31, 2025; The Company spent $409.0 million on share repurchases during the first six months of 2026 under its share repurchase program, which included $85.0 million during the second quarter; and Total headcount was approximately 62,850 as of June 30, 2026. Included in this number were approximately 56,650 delivery professionals, an increase of 0.3% from March 31, 2026. 2026 Outlook - Full Year and Third Quarter

Full Year

EPAM expects the following for the full year:

The Company now expects the year-over-year revenue growth rate to be in the range of 3.2% to 4.2% for 2026 and now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 2.0% to 3.0%; For the full year, EPAM now expects GAAP income from operations to be in the range of 10.5% to 11.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.0% of revenues; The Company continues to expect its GAAP effective tax rate to be approximately 27% and its non-GAAP effective tax rate to be approximately 24%; and EPAM now expects GAAP diluted EPS to be in the range of $8.22 to $8.38 and non-GAAP diluted EPS to be in the range of $13.08 to $13.24. The Company now expects weighted average diluted shares outstanding for the year to be 52.2 million. Third Quarter

EPAM expects the following for the third quarter:

The Company expects revenues will be in the range of $1.410 billion to $1.425 billion for the third quarter, reflecting year-over-year growth of 1.7% at the midpoint of the range. The Company expects the year-over-year revenue growth rate on an organic constant currency basis to be 1.8% at the midpoint of the range; For the third quarter, EPAM expects GAAP income from operations to be in the range of 11.0% to 12.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.5% of revenues; The Company expects its GAAP effective tax rate to be approximately 25% and its non-GAAP effective tax rate to be approximately 24%; and EPAM expects GAAP diluted EPS will be in the range of $2.33 to $2.41 for the quarter, and non-GAAP diluted EPS will be in the range of $3.38 to $3.46 for the quarter. The Company expects weighted average diluted shares outstanding for the quarter to be 51.4 million. Conference Call Information

EPAM will host a conference call to discuss the results on Thursday, August 6, 2026, at 8:00 a.m. ET. The conference call will be available live on the EPAM website at https://investors.epam.com. Please visit the website at least 15 minutes prior to the call to register for the event. For those who cannot access the live webcast, a replay will be available in the Investor Relations section of the website.

About EPAM Systems

EPAM (NYSE:EPAM) is a global leader in AI transformation engineering and integrated consulting, serving Forbes Global 2000 companies and ambitious startups. With over thirty years of expertise in custom software, product and platform engineering, EPAM empowers organizations to become AI-Native enterprises, driving measurable value from innovation and digital investments. Recognized by industry benchmarks and leading analysts as a leader in AI, EPAM delivers globally while engaging locally, making the future real for clients, partners, and employees.

We are proud to be recognized by Forbes, Glassdoor, Newsweek, Time Magazine, Great Place to Work and kununu as a Most Loved Workplace around the world.

Learn more at www.epam.com and follow us on LinkedIn.

Non-GAAP Financial Measures

EPAM supplements results reported in accordance with United States generally accepted accounting principles, referred to as GAAP, with non-GAAP financial measures. Management believes these measures help illustrate underlying trends in EPAM's business and uses the measures to establish budgets and operational goals, communicate internally and externally, for managing EPAM's business and evaluating its performance. Management also believes these measures help investors compare EPAM's operating performance with its results in prior periods. EPAM anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude stock-based compensation expenses, acquisition-related costs including amortization of acquired intangible assets, impairment of assets, expenses associated with EPAM's humanitarian commitment to its professionals in Ukraine, employee separation costs incurred in connection with restructuring programs, certain other one-time charges and benefits, changes in fair value of contingent consideration, foreign exchange gains and losses, excess tax benefits and tax shortfalls related to stock-based compensation, and the related effect on income taxes of the pre-tax adjustments. Management also compares revenues on an "organic constant currency basis," which is a non-GAAP financial measure. This measure excludes the effect of acquisitions by removing revenues from an acquired company in the twelve months after completing an acquisition and foreign currency exchange rate fluctuations by translating current period revenues into U.S. dollars at the weighted average exchange rates of the prior period of comparison. Because EPAM's reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within EPAM's industry. Consequently, EPAM's non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in EPAM's consolidated financial statements, which are prepared in accordance with GAAP.

Forward-Looking Statements

This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate"or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors"and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

EPAM SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In thousands, except per share data)

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Revenues

$  1,414,767

$  1,353,443

$ 2,814,828

$ 2,655,135

Operating expenses:

Cost of revenues (exclusive of depreciation and amortization)

985,199

964,012

1,997,251

1,916,020

Selling, general and administrative expenses

245,245

231,681

484,947

450,598

Depreciation and amortization expense

32,101

31,274

63,640

62,711

Income from operations

152,222

126,476

268,990

225,806

Interest and other income (loss), net

(1,821)

3,519

(239)

9,333

Foreign exchange loss

(9,850)

(6,227)

(7,552)

(16,954)

Income before provision for income taxes

140,551

123,768

261,199

218,185

Provision for income taxes

37,572

35,742

75,699

56,677

Net income

$    102,979

$      88,026

$   185,500

$   161,508

Net income per share:

Basic

$         1.97

$         1.56

$       3.50

$       2.86

Diluted

$         1.97

$         1.56

$       3.49

$       2.84

Shares used in calculation of net income per share:

Basic

52,197

56,319

52,991

56,548

Diluted

52,267

56,536

53,220

56,898

EPAM SYSTEMS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except par value)

As of

June 30,

2026

As of

December 31,

2025

Assets

Current assets

Cash and cash equivalents

$     789,397

$  1,296,077

Trade receivables and contract assets, net of allowance of $3,939 and $6,350, respectively

1,268,036

1,108,201

Prepaid and other current assets

158,556

129,610

Total current assets

2,215,989

2,533,888

Property and equipment, net

204,967

202,387

Operating lease right-of-use assets, net

124,999

114,875

Intangible assets, net

372,969

406,586

Goodwill

1,203,048

1,210,564

Deferred tax assets

295,947

295,115

Other noncurrent assets

156,167

138,721

Total assets

$  4,574,086

$  4,902,136

Liabilities

Current liabilities

Accounts payable

$       41,551

$      55,329

Accrued compensation and benefits expenses

495,961

608,232

Accrued expenses and other current liabilities

208,531

250,688

Income taxes payable, current

19,093

25,520

Operating lease liabilities, current

39,301

37,173

Total current liabilities

804,437

976,942

Long-term debt

25,000

25,034

Operating lease liabilities, noncurrent

87,942

81,497

Deferred tax liabilities, noncurrent

74,505

76,969

Other noncurrent liabilities

62,901

63,886

Total liabilities

1,054,785

1,224,328

Commitments and contingencies

Equity

Stockholders' equity

Common stock, $0.001 par value; 160,000 shares authorized; 51,585 shares issued
and outstanding at June 30, 2026, and 54,274 shares issued and outstanding at
December 31, 2025

52

54

Additional paid-in capital

1,487,973

1,390,423

Retained earnings

2,035,664

2,268,204

Accumulated other comprehensive income (loss)

(4,970)

18,545

Total EPAM Systems, Inc. stockholders' equity

3,518,719

3,677,226

Noncontrolling interest in consolidated subsidiaries

582

582

Total equity

3,519,301

3,677,808

Total liabilities and equity

$  4,574,086

$  4,902,136

EPAM SYSTEMS, INC. AND SUBSIDIARIES
Reconciliations of Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(Unaudited)
(In thousands, except percentages and per share amounts)

Reconciliation of year-over-year revenue growth as reported on a GAAP basis to revenue growth on an organic constant currency

basis is presented in the table below:

Three Months Ended

June 30, 2026

Six Months Ended

June 30, 2026

Revenue growth as reported

4.5 %

6.0 %

Inorganic revenue

— %

— %

Foreign exchange rates

(1.1) %

(2.5) %

Revenue growth on an organic constant currency basis

3.4 %

3.5 %

Reconciliation of various income statement amounts from GAAP to non-GAAP for the three and six months ended June 30, 2026 and 2025:

Three Months Ended

June 30, 2026

Six Months Ended

June 30, 2026

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Cost of revenues (exclusive of depreciation and amortization)(1)

$  985,199

$   (23,361)

$  961,838

$   1,997,251

$  (46,771)

$   1,950,480

Selling, general and administrative expenses(2)

$  245,245

$   (39,474)

$  205,771

$      484,947

$  (82,314)

$      402,633

Income from operations(3)

$  152,222

$    80,444

$  232,666

$      268,990

$ 164,412

$      433,402

Operating margin

10.8 %

5.6 %

16.4 %

9.6 %

5.8 %

15.4 %

Net income(4)

$  102,979

$    73,831

$ 176,810

$     185,500

$ 146,535

$      332,035

Diluted earnings per share

$        1.97

$       3.38

$           3.49

$            6.24

Three Months Ended

June 30, 2025

Six Months Ended

June 30, 2025

GAAP

Adjustments

Non-GAAP

GAAP

Adjustments

Non-GAAP

Cost of revenues (exclusive of depreciation and amortization)(1)

$  964,012

$   (18,232)

$  945,780

$  1,916,020

$  (42,773)

$   1,873,247

Selling, general and administrative expenses(2)

$  231,681

$   (40,349)

$  191,332

$     450,598

$  (74,572)

$      376,026

Income from operations(3)

$  126,476

$    76,417

$  202,893

$     225,806

$ 152,837

$      378,643

Operating margin

9.3 %

5.7 %

15.0 %

8.5 %

5.8 %

14.3 %

Net income(4)

$    88,026

$    68,765

$  156,791

$    161,508

$ 133,298

$      294,806

Diluted earnings per share

$        1.56

$        2.77

$          2.84

$            5.18

Items (1) through (4) above are detailed in the table below with the specific cross-reference noted in the appropriate item.

Three Months Ended

June 30,

Six Months Ended

June 30,

2026

2025

2026

2025

Stock-based compensation expenses

$      22,833

$      18,161

$   45,686

$   42,084

Humanitarian support in Ukraine(a)

528

576

1,085

1,194

Poland R&D incentives (b)

—

(505)

—

(505)

Total adjustments to GAAP cost of revenues(1)

23,361

18,232

46,771

42,773

Stock-based compensation expenses

23,568

20,397

50,634

44,930

Cost Optimization charges(c)

13,940

16,275

27,336

21,586

Humanitarian support in Ukraine(a)

1,961

3,282

4,370

7,014

Other acquisition-related expenses

1

292

7

862

One-time charges (benefits)

4

103

(33)

180

Total adjustments to GAAP selling, general and administrative expenses(2)

39,474

40,349

82,314

74,572

Amortization of acquired intangible assets

17,609

17,836

35,327

35,492

Total adjustments to GAAP income from operations(3)

80,444

76,417

164,412

152,837

Foreign exchange loss

9,850

6,227

7,552

16,954

Change in fair value of contingent consideration included in Interest and other income, net

1,435

(232)

2,420

(1,969)

Impairment of financial assets

356

—

356

—

Gain on financial instrument

—

—

—

(350)

Provision for income taxes:

Tax effect on non-GAAP adjustments

(19,997)

(18,291)

(39,128)

(38,201)

Tax shortfall related to stock-based compensation

1,743

1,106

11,592

563

Net discrete charge (benefit) from tax planning(d)

—

3,538

(669)

3,464

Total adjustments to GAAP net income(4)

$      73,831

$      68,765

$  146,535

$  133,298

(a)

Humanitarian support in Ukraine includes expenses related to EPAM's $100 million humanitarian commitment in response to Russia's invasion of Ukraine to support EPAM professionals and their families in and displaced from Ukraine. These expenses are incremental to those expenses incurred prior to the crisis, clearly separable from normal operations, and not expected to recur once the crisis has subsided and operations return to normal.

(b)

We have excluded from non-GAAP results the portion of the benefit from Poland R&D incentives related to qualifying activities performed in 2023 as it represents a nonrecurring one-time benefit.

(c)

Cost Optimization charges include employee separation costs incurred in connection with the programs initiated in the second quarter of 2024 and second quarter of 2025. Consistent with the Company's historical non-GAAP policy, costs incurred in connection with formal restructuring initiatives have been excluded from non-GAAP results as these are attributable to targeted restructuring efforts and not expected to recur once the respective Cost Optimization program is completed.

(d)

Net discrete charge (benefit) related to the implementation of tax planning to disregard certain foreign subsidiaries as separate entities for U.S. income tax purposes. Consistent with the Company's historical non-GAAP policy, the charge (benefit) related to the implementation of tax planning has been excluded from non-GAAP results as it is one-time and unusual in nature.

EPAM SYSTEMS, INC. AND SUBSIDIARIES

Reconciliations of Guidance Non-GAAP Financial Measures to Comparable GAAP Financial Measures

(Unaudited)

The below guidance constitutes forward-looking statements within the meaning of the federal securities laws and is

based on a number of assumptions that are subject to change and many of which are outside the control of the

Company. Actual results may differ materially from the Company's expectations depending on factors discussed in

the Company's filings with the Securities and Exchange Commission.

Reconciliation of expected year-over-year revenue growth on a GAAP basis to expected revenue growth on an organic

constant currency basis is presented in the table below:

Third Quarter 2026

Full Year 2026

(at midpoint of range)

Revenue growth

1.7 %

3.2% to 4.2%

Foreign exchange rates impact

0.1 %

(1.2) %

Inorganic revenue growth

— %

— %

Revenue growth on an organic constant currency basis

1.8 %

2.0% to 3.0%

Reconciliation of expected GAAP to non-GAAP income from operations as a percentage of revenues is presented in the table below:

Third Quarter 2026

Full Year 2026

GAAP income from operations as a percentage of revenues

11.0% to 12.0%

10.5% to 11.0%

Stock-based compensation expenses

3.1 %

3.2 %

Included in cost of revenues (exclusive of depreciation and amortization)

1.5 %

1.5 %

Included in selling, general and administrative expenses

1.6 %

1.7 %

Humanitarian support in Ukraine(a)

0.2 %

0.2 %

Cost Optimization charges(c)

— %

0.4 %

Amortization of acquired intangible assets

1.2 %

1.2 %

Non-GAAP income from operations as a percentage of revenues(e)

15.5% to 16.5%

15.5% to 16.0%

(e)

EPAM has not included the impact of potential future one-time charges including asset impairments, unusual gains and losses, expenses incurred in connection with future cost optimization actions, and other acquisition-related expenses because the Company is unable to predict these amounts with reasonable certainty.

Reconciliation of expected GAAP to non-GAAP effective tax rate is presented in the table below:

Third Quarter 2026

Full Year 2026

GAAP effective tax rate (approximately)

25.0 %

27.0 %

Tax effect on non-GAAP adjustments

(0.8) %

(0.8) %

Tax shortfall related to stock-based compensation

(0.2) %

(2.3) %

Net discrete benefit from tax planning(d)

— %

0.1 %

Non-GAAP effective tax rate (approximately)

24.0 %

24.0 %

Reconciliation of expected GAAP to non-GAAP diluted earnings per share is presented in the table below:

Third Quarter 2026

Full Year 2026

GAAP diluted earnings per share

$2.33 to $2.41

$8.22 to $8.38

Stock-based compensation expenses

0.85

3.55

Included in cost of revenues (exclusive of depreciation and amortization)

0.39

1.66

Included in selling, general and administrative expenses

0.46

1.89

Humanitarian support in Ukraine(a)

0.05

0.20

Cost Optimization charges(c)

—

0.52

One-time charges(e)

0.02

0.03

Amortization of acquired intangible assets

0.34

1.34

Change in fair value of contingent consideration

—

0.05

Foreign exchange loss

0.06

0.22

Provision for income taxes:

     Tax effect on non-GAAP adjustments

(0.28)

(1.30)

     Tax shortfall related to stock-based compensation

0.01

0.26

     Net discrete benefit from tax planning(d)

—

(0.01)

Non-GAAP diluted earnings per share(e)

$3.38 to $3.46

$13.08 to $13.24

SOURCE EPAM Systems, Inc.

Ending the month on an auspicious note, EPAM Systems (EPAM +1.83%) stock soared through the last week of July. With an analyst taking a more bullish stance on the software stock and the company reporting a new artificial intelligence (AI) collaboration, investors found plenty of reasons to pick up shares.

According to data provided by S&P Global Market Intelligence, shares of EPAM Systems rose 17.5% from the end of trading on July 24 through the close of yesterday's market session.

Image source: Getty Images.

Investors respond bullishly to a firm's new view Maintaining a neutral rating, Citigroup lowered its price target on EPAM Systems stock to $100 from $112 on Monday. While the more tempered view of the stock's prospects seemed negative on the surface, investors interpreted the reduced price target as a glass-half-full view.

Today's Change

(

1.83

%) $

1.90

Current Price

$

105.56

Shares of EPAM Systems closed at $89.85 before the weekend, implying upside of over 11% from the new price target.

The second catalyst for the stock's rise came on Wednesday, when EPAM Systems announced it had joined the OpenAI Partner Network as an Advanced Partner. As one of the newest members of the network, EPAM Systems will assist enterprises worldwide in deploying safer, more scalable AI solutions.

EPAM Systems projects that it will "develop specialized forward-deployed engineer training globally, certifying more than 5,000 consultants with 10,000+ credentials in the first year" of its partnership with OpenAI.

Is it too late to buy EPAM Systems stock after the recent rise? While the new Citigroup price target and the deal with OpenAI may prompt some to act, investors would be better served by conducting their own due diligence and thoroughly investigating the company on its merits. Consistently profitable and free cash flow-generating, EPAM Systems offers a more conservative route to gaining AI stock exposure. And with shares trading at 15.2 times trailing earnings, a deep discount to their five-year average P/E of 18.9, investors have a great opportunity to pick up shares while they're sitting in the bargain bin.

Citigroup is an advertising partner of Motley Fool Money. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EPAM Systems. The Motley Fool has a disclosure policy.

Posted by Defense World Staff on Jul 27th, 2026

Delta Global Management LP purchased a new stake in shares of EPAM Systems, Inc. (NYSE:EPAM – Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 6,193 shares of the information technology services provider’s stock, valued at approximately $839,000.

Other hedge funds have also modified their holdings of the company. Brighton Jones LLC bought a new stake in shares of EPAM Systems during the 4th quarter valued at $218,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in EPAM Systems by 68.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,539 shares of the information technology services provider’s stock worth $1,611,000 after buying an additional 3,880 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in EPAM Systems by 53.8% during the first quarter. Goldman Sachs Group Inc. now owns 335,150 shares of the information technology services provider’s stock valued at $56,587,000 after acquiring an additional 117,170 shares during the period. United Services Automobile Association bought a new stake in EPAM Systems during the first quarter valued at about $229,000. Finally, Empowered Funds LLC lifted its position in shares of EPAM Systems by 134.1% in the first quarter. Empowered Funds LLC now owns 2,254 shares of the information technology services provider’s stock valued at $381,000 after acquiring an additional 1,291 shares in the last quarter. 91.58% of the stock is currently owned by institutional investors.

EPAM Systems Price Performance EPAM stock opened at $89.94 on Monday. EPAM Systems, Inc. has a 52 week low of $73.06 and a 52 week high of $222.53. The firm has a market capitalization of $4.70 billion, a P/E ratio of 12.90, a price-to-earnings-growth ratio of 0.85 and a beta of 1.43. The company has a fifty day simple moving average of $90.89 and a two-hundred day simple moving average of $131.12. The company has a quick ratio of 2.67, a current ratio of 2.67 and a debt-to-equity ratio of 0.05.

EPAM Systems (NYSE:EPAM – Get Free Report) last posted its earnings results on Wednesday, May 6th. The information technology services provider reported $2.86 earnings per share for the quarter, topping analysts’ consensus estimates of $2.75 by $0.11. EPAM Systems had a net margin of 6.96% and a return on equity of 14.71%. The firm had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period in the previous year, the firm posted $2.41 EPS. The business’s quarterly revenue was up 7.6% on a year-over-year basis. Analysts anticipate that EPAM Systems, Inc. will post 10.4 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth EPAM has been the subject of a number of recent analyst reports. TD Cowen dropped their price objective on EPAM Systems from $170.00 to $131.00 and set a “buy” rating for the company in a research note on Thursday, July 9th. Citigroup reissued a “cautious” rating on shares of EPAM Systems in a research note on Friday, May 29th. Wedbush began coverage on EPAM Systems in a research note on Monday, June 15th. They issued a “neutral” rating and a $99.00 price target for the company. The Goldman Sachs Group downgraded EPAM Systems from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $215.00 to $110.00 in a research note on Friday, May 8th. Finally, Wells Fargo & Company cut their price objective on shares of EPAM Systems from $151.00 to $125.00 and set an “overweight” rating for the company in a report on Friday, July 10th. Seven investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, EPAM Systems presently has a consensus rating of “Hold” and an average price target of $134.36.

Check Out Our Latest Stock Report on EPAM Systems

About EPAM Systems (Free Report)

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.

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If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Epam (EPAM - Free Report) . This company, which is in the Zacks Computers - IT Services industry, shows potential for another earnings beat.

When looking at the last two reports, this information technology services provider has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 3.58%, on average, in the last two quarters.

For the last reported quarter, Epam came out with earnings of $2.86 per share versus the Zacks Consensus Estimate of $2.75 per share, representing a surprise of 4.00%. For the previous quarter, the company was expected to post earnings of $3.16 per share and it actually produced earnings of $3.26 per share, delivering a surprise of 3.16%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Epam. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Epam currently has an Earnings ESP of +0.23%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 6, 2026.

With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Investors with an interest in Computers - IT Services stocks have likely encountered both Epam (EPAM) and ServiceNow (NOW). But which of these two stocks offers value investors a better bang for their buck right now?

, /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital and AI transformation company, will host a conference call at 8:00 a.m. ET, on Thursday, August 6, 2026, to discuss its second quarter 2026 financial results. A news release containing these results will be issued before the call. 

The conference call will be live on the EPAM website at https://investors.epam.com. 

Please visit the website at least 15 minutes before the call to register for the event. For those who cannot attend the live webcast, a replay will be available in the Investor Relations section of the website. 

About EPAM Systems, Inc.
EPAM (NYSE:EPAM) is a global leader in AI transformation engineering and integrated consulting, serving Forbes Global 2000 companies and ambitious startups. With over thirty years of expertise in custom software, product and platform engineering, EPAM empowers organizations to become AI-Native enterprises, driving measurable value from innovation and digital investments. Recognized by industry benchmarks and leading analysts as a leader in AI, EPAM delivers globally while engaging locally, making the future real for clients, partners, and employees. 

We are proud to be recognized by Forbes, Glassdoor, Newsweek, Time Magazine, Great Place to Work and kununu as a Most Loved Workplace around the world. 

Learn more at www.epam.com and follow us on LinkedIn.

Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade, and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

SOURCE EPAM Systems, Inc.

Customer success across consumer goods, retail, healthcare and life sciences highlights EPAM's impact in helping enterprises operationalize Databricks AI for improved visibility and trusted business decisions

, /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM) has been recognized as the 2026 Databricks Consulting & Systems Integrator AI Partner of the Year. Presented at the annual Data + AI Summit, the recognition underscores EPAM's collaboration with Databricks and its role in helping enterprise organizations advance data, analytics and AI transformation at scale.

Learn more about EPAM's partnership with Databricks

EPAM has been recognized as the 2026 Databricks Consulting & Systems Integrator AI Partner of the Year The award recognizes EPAM's impact in helping clients across industries operationalize AI on the Databricks platform, accelerating the journey from fragmented data to trusted, production-grade AI applications and agents that help business teams act with confidence. EPAM's delivery approach and AI accelerators were recognized for helping organizations reduce decision cycles from days to minutes, decrease reliance on manual reporting and put governed, conversational intelligence in the hands of the people who drive business outcomes.

"We're delighted to be awarded Databricks' 2026 Consulting & Systems Integrator AI Partner of the Year. This recognition reflects the impact of our partnership in helping global organizations turn AI strategy into enterprise-scale transformation," said Valentin Tsitlik, SVP, Head of Data and Analytics Practice, EPAM. "Together with Databricks, we help our joint clients build the trusted data foundations and production AI capabilities needed to simplify decision making, improve enterprise performance and create measurable business value."

EPAM has demonstrated a strong commitment to helping client organizations build and scale data analytics, AI applications and agents through its collaboration with Databricks, the Data and AI company. Working across healthcare and life sciences, consumer goods and retail, manufacturing, media and other industries, EPAM has developed industry-specific AI accelerators that help clients modernize their data platforms and accelerate AI adoption.

"The most successful organizations today are those that can turn raw data into real business impact. EPAM, our 2026 Consulting & Systems Integrator AI Partner of the Year, stands out in helping customers make that leap," said Kori O'Brien, SVP, Global Partnerships at Databricks. "Their ability to execute complex transformations on the Databricks platform helps our joint customers move faster and put AI to work in meaningful, measurable ways."

EPAM's winning use cases illustrate how conversational AI can unblock workflows typically slowed by fragmented data and manual reporting, helping client teams detect issues earlier, improve alignment and move faster from insight to action. By creating trusted enterprise context from governed data, these solutions help AI applications and agents deliver more accurate insights and actions across critical business workflows. This recognition reflects not just delivery excellence, but EPAM's broader commitment as an AI-first company, combining deep engineering heritage with a relentless focus on turning AI strategy into measurable enterprise outcomes.

This focus on trusted data foundations and governed AI aligns with broader industry guidance on what enterprises need to scale AI responsibly. As Forrester notes in a recently published report, "When data governance and AI governance operate in alignment, they become a powerful engine that delivers the outcome the business craves: trust, enablement, superior intelligence, assurance, and control. Trusted data strengthens AI outcomes, while governed AI use cases create clearer expectations for data quality, access, and controls."1

The strength of the EPAM partnership with Databricks is also reflected in enterprise-scale data modernization work that helps clients build the foundation for future AI initiatives. In an engagement with a leading marketing data and analytics company, EPAM helped deliver the client's first modern enterprise data platform on Databricks and Microsoft Azure, simplifying a fragmented data estate and creating a common data model to support governance, reduce duplicate engineering work and enable high-volume analytics across the enterprise.

To learn more about EPAM's partnership with Databricks, visit: www.epam.com/services/partners/databricks.

About EPAM Systems, Inc.
EPAM (NYSE:EPAM) is a global leader in AI transformation engineering and integrated consulting, serving Forbes Global 2000 companies and ambitious startups. With over thirty years of expertise in custom software, product and platform engineering, EPAM empowers organizations to become AI-Native enterprises, driving measurable value from innovation and digital investments. Recognized by industry benchmarks and leading analysts as a leader in AI, EPAM delivers globally while engaging locally, making the future real for clients, partners, and employees.

We are proud to be recognized by Forbes, Glassdoor, Newsweek, Time Magazine, Great Place to Work and kununu as a Most Loved Workplace around the world.

Learn more at www.epam.com and follow us on LinkedIn.

Forward-Looking Statements
This press release includes estimates and statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assumptions as to future events that may not prove to be accurate. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our business and operations. These statements may include words such as "may," "will," "should," "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. Those future events and trends may relate to, among other things, developments relating to the war in Ukraine and escalation of the war in the surrounding region, political and civil unrest or military action in the geographies where we conduct business and operate, difficult conditions in global capital markets, foreign exchange markets, global trade, and the broader economy, the adoption and implementation of artificial intelligence technologies by EPAM and its clients, and the effect that these events may have on client demand and our revenues, operations, access to capital, and profitability. Other factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, the risk factors discussed in the Company's most recent Annual Report on Form 10-K and the factors discussed in the Company's Quarterly Reports on Form 10-Q, particularly under the headings "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" and other filings with the Securities and Exchange Commission. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to several risks and uncertainties and are made based on information currently available to us. EPAM undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities law.

1 Forrester, "Operationalize Data and AI Governance To Enable Business Outcomes", Jayesh Chaurasia, Enza Iannopollo with Sudha Maheshwari, Samishti Bhatia, Jen Barton, June 2, 2026

SOURCE EPAM Systems, Inc.

Shares of Accenture (ACN +0.85%) cratered about 18% on June 18 -- the consulting giant's worst single-day drop on record. What spooked investors wasn't the quarter. It was the outlook, and the fear behind it.

And Accenture didn't fall alone. EPAM Systems (EPAM +0.83%) slid about 9% the same day without reporting anything of its own. The worry driving this sell-off? The risk of artificial intelligence (AI) threatening the work these firms get paid for.

So is AI structurally shrinking demand for IT services, or is this an overreaction?

Image source: Getty Images.

Accenture: a record drop on a cautious outlook Overall, Accenture's fiscal third quarter of 2026 (the period ended May 31, 2026) was solid. Revenue rose 6% to $18.7 billion, and earnings per share climbed 9%.

But the trouble was the guidance. Management trimmed its full-year revenue growth outlook to 3% to 4% in local currency, from 3% to 5%. New bookings, a measure of future work, fell 2%.

CEO Julie Sweet tied part of the softness to the war in the Middle East, which she said cut about $100 million from fiscal third-quarter revenue relative to expectations.

And Sweet is optimistic that AI will be a catalyst for its business.

"We believe that AI will be a tailwind for us and our industry as it scales," Sweet said on the company's fiscal third-quarter earnings call.

But the market seems more pessimistic. At about $128 as of this writing, less than half its 52-week high, Accenture trades at only about 10 times earnings.

EPAM Systems: the most exposed? If any of these businesses looks vulnerable to AI coding tools, it's EPAM. It's a pure-play digital engineering and software development shop -- the hands-on programming work that AI assistants keep getting better at automating.

The stock has been punished for it. Shares closed near $77 as of this writing, down roughly two-thirds from a January high above $220. Adding to the stock's calamity, EPAM was dropped from the S&P 500 earlier this month.

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Still, the business held up fairly well in the first quarter, with revenue up 7.6% to $1.4 billion. But management cut its full-year revenue growth outlook to a range of 4% to 6.5%.

In the meantime, EPAM signed a multi-year partnership with AI developer Anthropic and is training more than 20,000 employees on Anthropic tools.

But apparently, this isn't enough to excite Wall Street. Trading at about 11 times earnings, the stock prices in heavy doubt.

Cognizant: bookings that don't fit the panic Cognizant (CTSH 1.15%), an IT-services and outsourcing company, fell about 10% on June 18, to a 52-week low -- even though it reported a solid first quarter back in April, with revenue up 5.8% to $5.4 billion and non-GAAP (adjusted) earnings per share up about 14%.

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Even more, its first-quarter bookings rose 21%, and trailing-12-month bookings reached $29.6 billion, up 11%. The company signed seven deals worth $100 million or more in the quarter, including one above $500 million.

At around 9 times earnings, plenty of bad news is already in the price.

IBM: the best-positioned to thrive? IBM (IBM +4.86%) sits at the opposite end -- its stock slipped about 5% on June 18, a fraction of the others' losses.

The difference is what IBM sells. Consulting is only about a third of its revenue, and it grew just 4% last quarter (1% excluding currency). The rest of its business, however, may be more durable. First-quarter software revenue rose 11% to $7.1 billion, and infrastructure jumped 15% on a strong mainframe cycle. Total revenue climbed 9% to $15.9 billion.

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CEO Arvind Krishna, like Accenture's, has called AI a tailwind for the business. But Krishna arguably has more substance behind his claim.

That recurring software and hardware base is why IBM commands a higher valuation of about 22 times earnings, while the pure-services names trade in the single-digit to low-double-digit range.

IBM investors are paying up for revenue they believe AI can't easily strip away.

What's next? So was the sell-off overdone?

In places, probably. Cognizant's rising bookings and Accenture's 104 client bookings of $100 million or more this fiscal year, up 13%, don't describe businesses caving to AI. And at single-digit and low-double-digit earnings multiples, a lot of pessimism is already baked in.

But the overhang won't lift soon. The fear that AI hollows out demand for consulting and engineering could weigh on these stocks for years, and they could rerate lower still if investors decide their advantages are eroding.

Ultimately, AI may be both a tailwind and a disruptor simultaneously. Perhaps over the next few quarters, we'll get more visibility into whether or not the tailwind is the stronger force.

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#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Epam (EPAM - Free Report) Headquartered in Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.

EPAM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.28; value investors should take notice.

Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.34 to $13.10 per share. EPAM also boasts an average earnings surprise of +3.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EPAM should be on investors' short list.

Key Takeaways EPAM posted Q1 EPS of $2.86 and revenues of $1.40B, both topping the consensus estimate.EPAM saw strong growth in Financial Services and Software & Hi-Tech, while Media stayed weak.EPAM expects 2026 revenue growth of 4-6.5% and EPS between $12.98 and $13.28. EPAM Systems Inc. (EPAM - Free Report) reported strong first-quarter 2026 results, with revenues and earnings surpassing the Zacks Consensus Estimate despite macroeconomic uncertainty. EPAM reported first-quarter non-GAAP earnings of $2.86 per share, which increased 18.7% year over year and beat the Zacks Consensus Estimates by 4%.

The company’s first-quarter revenues of $1.40 billion beat the Zacks Consensus Estimates by 0.24% and increased 7.6% year over year from $1.30 billion in the prior-year quarter. On an organic constant-currency basis, revenues grew 3.7% year over year.

EPAM’s Q1 in DetailEPAM Systems’ year-over-year revenue growth was driven by strong performance across most industry verticals, led by Financial Services and Software & Hi-Tech, while Business Information & Media remained weak.

Revenues from Financial Services (25% of total revenues) were $350.2 million, up 11.5% year over year. First-quarter revenues from Consumer Goods, Retail & Travel (19.6% of total revenues) were $273.9 million, which increased 7.2% year over year.

Revenues from Software & Hi-Tech (15.1% of total revenues) were $210.7 million, up 10.9% year over year. Life Sciences & Healthcare revenues (11.7% of total revenues) were $164.1 million, which increased 5.9% year over year.

Revenues from Business Information & Media (11.8% of total revenues) were $165.4 million, down 0.7% year over year. Emerging vertical revenues (16.8% of total revenues) were $235.8 million, which rose 6.8% year over year.

Geographically, Americas revenues were $799.5 million, up 2.5% year over year, while EMEA revenues increased 15.9% year over year to $576 million. APAC revenues grew 1.2% year over year to $24.6 million.

EPAM’s non-GAAP gross profit increased 9.9% year over year to $411.4 million, while the non-GAAP gross margin expanded 70 basis points (bps) to 29.4%.

The non-GAAP operating income increased 14.2% year over year to $200.7 million. The non-GAAP operating margin expanded 80 bps to 14.3%.

EPAM’s Balance Sheet & Cash FlowAs of March 31, 2026, EPAM had cash, cash equivalents and restricted cash of approximately $1.04 billion, down from $1.30 billion as of Dec. 31, 2025. Long-term debt was $165 million as of March 31, 2026.

During the first quarter, cash used in operating activities was $36.4 million compared with cash generated from operating activities of $24.2 million in the year-ago quarter. Free cash flow was negative $54.2 million in the quarter against a positive free cash flow of $14.8 million in the prior-year quarter.

The company continued returning capital to shareholders and spent $324 million on share repurchases during the first quarter, including $300 million under its accelerated share repurchase agreement.

EPAM Updates Q2 and 2026 GuidanceFor the second quarter of 2026, EPAM Systems expects revenues to be in the range of $1.400 billion to $1.415 billion, indicating year-over-year growth of 4% at the midpoint. The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $1.43 billion, indicating a year-over-year rise of 5.38%.

For full-year 2026, EPAM now expects revenues to grow in the range of 4% to 6.5% year over year. The Zacks Consensus Estimate for the 2026 revenues is pegged at $5.79 billion, indicating a year-over-year rise of 6.2%.

EPAM expects non-GAAP diluted earnings per share in the range of $12.98 to $13.28. The Zacks Consensus Estimate for 2026 earnings is pegged at $12.76, indicating a year-over-year rise of 10.96%.

Zacks Rank and Stocks to ConsiderCurrently, EPAM carries a Zacks Rank #3 (Hold).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Broadcom (AVGO - Free Report) , Celestica (CLS - Free Report) and Samsara (IOT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Broadcom have gained 21.7% year to date. The Zacks Consensus Estimate for Broadcom’s 2026 earnings is pegged at $11.45 per share, up by a penny over the past 30 days, indicating an increase of 68% year over year.

Shares of Celestica have rallied 41.7% year to date. The Zacks Consensus Estimate for Celestica’s 2026 earnings is pegged at $9.85 per share, up $1.01 over the past seven days, indicating an increase of 62.8% year over year.

Samsara shares have lost 14% year to date. The Zacks Consensus Estimate for IOT’s fiscal 2027 earnings is pegged at 68 cents per share, up 11 cents over the past 60 days, indicating an increase of 21.4% year over year.

Image: Bigstock

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Epam (EPAM - Free Report) reported $1.4 billion in revenue for the quarter ended March 2026, representing a year-over-year increase of 7.6%. EPS of $2.86 for the same period compares to $2.41 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.4 billion, representing a surprise of +0.24%. The company delivered an EPS surprise of +4.05%, with the consensus EPS estimate being $2.75.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Epam performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Headcount: 62,750 compared to the 62,926 average estimate based on two analysts.Delivery professionals: 56,500 versus 56,784 estimated by two analysts on average.Revenues by Customer Location- Americas: $799.47 million versus the two-analyst average estimate of $830.48 million. The reported number represents a year-over-year change of +2.5%.Revenues by Customer Location- APAC: $24.58 million versus $27.94 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.2% change.Revenues by Customer Location- EMEA: $576.01 million compared to the $533.96 million average estimate based on two analysts. The reported number represents a change of +15.9% year over year.Revenues by Industry Verticals- Financial Services: $350.2 million versus $339.15 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.Revenues by Industry Verticals- Software & Hi-Tech: $210.72 million compared to the $208.16 million average estimate based on two analysts. The reported number represents a change of +10.9% year over year.Revenues by Industry Verticals- Life Sciences & Healthcare: $164.13 million versus the two-analyst average estimate of $165.06 million. The reported number represents a year-over-year change of +5.9%.Revenues by Industry Verticals- Emerging Verticals: $235.75 million versus the two-analyst average estimate of $239.79 million. The reported number represents a year-over-year change of +6.9%.Revenues by Industry Verticals- Consumer Goods, Retail & Travel: $273.88 million compared to the $273.93 million average estimate based on two analysts. The reported number represents a change of +7.2% year over year.Revenues by Contract Type- Time-and-material: $1.09 billion versus the two-analyst average estimate of $1.16 billion. The reported number represents a year-over-year change of +4.5%.Revenues by Contract Type- Fixed-price: $303.71 million versus $227.03 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +20.4% change.View all Key Company Metrics for Epam here>>>

Shares of Epam have returned -15.8% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Epam (EPAM - Free Report) Headquartered in Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.

EPAM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.79; value investors should take notice.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.07 to $12.74 per share. EPAM also boasts an average earnings surprise of +3.8%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, EPAM should be on investors' short list.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Epam (EPAM - Free Report) Headquartered in Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.

EPAM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. EPAM has a Growth Style Score of B, forecasting year-over-year earnings growth of 11.7% for the current fiscal year.

For fiscal 2026, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $12.84 per share. EPAM boasts an average earnings surprise of +3.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EPAM should be on investors' short list.

Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Micron?The final step today is to look at a stock that meets our ESP qualifications. Micron (MU - Free Report) earns a #1 (Strong Buy) 30 days from its next quarterly earnings release on June 24, 2026, and its Most Accurate Estimate comes in at $20.44 a share.

MU has an Earnings ESP figure of +5.69%, which, as explained above, is calculated by taking the percentage difference between the $20.44 Most Accurate Estimate and the Zacks Consensus Estimate of $19.34. Micron is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

MU is just one of a large group of Computer and Technology stocks with a positive ESP figure. Epam (EPAM - Free Report) is another qualifying stock you may want to consider.

Slated to report earnings on August 6, 2026, Epam holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $3.15 a share 73 days from its next quarterly update.

Epam's Earnings ESP figure currently stands at +0.31% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $3.14.

Because both stocks hold a positive Earnings ESP, MU and EPAM could potentially post earnings beats in their next reports.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Stocks futures are pointing lower this morning after major indexes closed at record highs yesterday, as investors await economic data and earnings reports; a key inflation indicator is due to be released this morning; Snowflake shares are soaring after the cloud software company reported earnings and announced a paid of deals; Costco and Dell are scheduled to release their quarterly results after the closing bell; and FedEx Freight will start trading on Monday after completing a spinoff from its parent company. Here's what you need to know today.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Epam (EPAM - Free Report) Headquartered in Newtown, PA, EPAM Systems, Inc. is well known for its software engineering and IT consulting services.

EPAM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. EPAM has a Growth Style Score of B, forecasting year-over-year earnings growth of 13.9% for the current fiscal year.

Nine analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.34 to $13.10 per share. EPAM also boasts an average earnings surprise of +3.8%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, EPAM should be on investors' short list.