The collaboration pairs OpenAI's frontier models with EPAM's global forward-deployed engineering force, cyber resilience and innovative customer experience expertise.
, /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM) announced today that it has joined the OpenAI Partner Network as an OpenAI Advanced Partner to help global enterprises implement safer, scalable AI solutions. EPAM's forward-deployed engineers will integrate OpenAI's models into new and existing operations, address industry-specific compliance and security requirements and deliver world-class customer experiences.
EPAM and OpenAI Partner to Help Enterprises Unlock Higher Value Through Applied AI For most organizations, the challenge is no longer identifying where AI can create value but deploying and scaling it securely to deliver business results. Through its OpenAI practice, EPAM will help Global 2000 enterprises connect OpenAI models to their applications, data and workflows in core operations while meeting security, governance and regulatory requirements. Together, EPAM and OpenAI will develop specialized forward-deployed engineer training globally, certifying more than 5,000 consultants with 10,000+ credentials in the first year.
To learn how EPAM helps organizations operationalize OpenAI's frontier models into secure, production-ready enterprise solutions, explore the EPAM and OpenAI Partnership.
"The next era of enterprise AI isn't about deploying models, it's about applying strategic intelligence, and the right talent, to solve real business problems safely and at scale," said Elaina Shekhter, SVP and Chief Strategy & Transformation Officer at EPAM. "Our foundation of secure enterprise deployment, AI-native SDLCs, embedded cybersecurity and forward-deployed engineering expertise is what enables us to turn frontier models into production-ready outcomes. With OpenAI, we're combining the world's leading models with best-in-class engineering to help executive leaders accelerate innovation, strengthen operational resilience and deliver differentiated customer experiences that drive real business growth."
Helping Enterprise Clients Accelerate AI Deployment
Through the OpenAI Partner Network, EPAM's Advanced partnership level helps organizations:
Deliver AI-powered customer experiences that are personalized, secure and scalable. Embed intelligence across customer service, marketing, sales and business operations. Connect OpenAI models to enterprise applications, data and workflows securely. Accelerate deployment through forward-deployed engineering and governance. Build AI foundations that evolve alongside OpenAI's rapidly advancing capabilities. "We're pleased to welcome EPAM as an OpenAI Advanced Partner. EPAM's deep engineering expertise and enterprise transformation experience can help organizations turn the potential of AI into real-world results," said Colleen Kapase, VP Strategic Global Partners & Ecosystems, OpenAI. "Through the OpenAI Partner Network, EPAM can help more enterprises move from AI pilots to measurable business impact."
Proven Results in Production
EPAM is already helping clients move from AI strategy to production at scale with OpenAI. For example, 1&1, a leading telecommunications provider, partnered with EPAM to transform its customer experience journey through agentic AI. The enterprise-scale platform now handles a considerable share of customer calls per week through 20+ intelligent AI agents, with the first production deployment completed in under three months.
"EPAM supported us in launching key GenAI initiatives to enhance our customer operations," said Christian Neuroth, Head of GenAI Customer Operations, 1&1. "EPAM's AI/Run™.Transform enables orchestration of intelligent agents for omnichannel support via phone or digital assistants, improving customer experience and resolution speed. EPAM combines deep technical expertise with a strong commitment to scalable, future-ready solutions."
Read more about how EPAM and OpenAI are helping enterprises unlock operational resilience and frontier experiences here.
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.
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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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.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
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 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 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 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 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 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 +23.94% 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.
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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease 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 6.83; value investors should take notice.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.02 to $13.08 per share. EPAM 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.
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.
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.
It also includes access to the Zacks Style Scores.
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 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 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.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% 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.
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 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.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
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 13.8% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.03 to $13.09 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.
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?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is EPAM Systems (EPAM - Free Report) . EPAM is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 13.16, while its industry has an average P/E of 16.91. Over the last 12 months, EPAM's Forward P/E has been as high as 23.27 and as low as 12.64, with a median of 16.57.
EPAM is also sporting a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EPAM's PEG compares to its industry's average PEG of 2.02. EPAM's PEG has been as high as 3.77 and as low as 1.61, with a median of 2.30, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EPAM has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.49.
These are just a handful of the figures considered in EPAM Systems's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EPAM is an impressive value stock 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.
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.
It also includes access to the Zacks Style Scores.
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.
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 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, 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.
#1 (Strong Buy) stocks have produced an unmatched +23.94% 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.
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.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee 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 6.06; value investors should take notice.
Nine analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.34 to $13.10 per share. EPAM 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.
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
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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.
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.
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.
EPAM Systems (EPAM) is rated Buy with a $135 price target, reflecting its strong engineering DNA and AI-native momentum. Q1 delivered $1.40B revenue (+7.6% YoY), $2.86 non-GAAP EPS, and $125M AI-native revenue—fifth consecutive quarter of double-digit sequential AI-native growth. The Anthropic partnership positions EPAM as a differentiated, engineering-led applied-AI partner, accelerating its internal transformation and client value proposition.
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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.
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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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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.
#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.
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 7.28; 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.
Epam (EPAM - Free Report) came out with quarterly earnings of $2.86 per share, beating the Zacks Consensus Estimate of $2.75 per share. This compares to earnings of $2.41 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.05%. A quarter ago, it was expected that this information technology services provider would post earnings of $3.16 per share when it actually produced earnings of $3.26, delivering a surprise of +3.16%.
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 $1.4 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.24%. This compares to year-ago revenues of $1.3 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 47.8% since the beginning of the year versus the S&P 500's gain of 7.6%.
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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $3.12 on $1.43 billion in revenues for the coming quarter and $12.76 on $5.79 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 top 34% 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.
One other stock from the same industry, Wix.com (WIX - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on May 13.
This cloud-based web development company is expected to post quarterly earnings of $1.21 per share in its upcoming report, which represents a year-over-year change of -21.9%. The consensus EPS estimate for the quarter has been revised 21.8% higher over the last 30 days to the current level.
Wix.com's revenues are expected to be $543.79 million, up 14.8% from the year-ago quarter.
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.
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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Why These 3 Tech Stocks Could Be the Best Opportunities You're OverlookingEPAM Systems NYSE: EPAM reported first-quarter 2026 revenue at the high end of its outlook and improved profitability, while management lowered its full-year revenue growth forecast amid macroeconomic uncertainty and slower decision-making among some clients.
Chief Executive Officer and President Balazs Fejes said the company delivered “a solid first quarter” with revenue growth at the high end of its guidance range, year-over-year improvement in adjusted profitability and gross margins, and strong adjusted earnings per share. Chief Financial Officer Jason Peterson said revenue rose 7.6% year over year to $1.4 billion. On an organic constant currency basis, revenue increased 3.7% from the first quarter of 2025.
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Buyback Accelerators: 3 Stocks Boosting Capacity & Spending SpeedGAAP income from operations increased approximately 18% year over year to $117 million, or 8.3% of revenue. Non-GAAP income from operations rose more than 14% to $201 million, or 14.3% of revenue. GAAP diluted earnings per share were $1.52, up from $1.28 a year earlier, while non-GAAP diluted EPS increased to $2.86 from $2.41.
AI Revenue Momentum and Anthropic Partnership Fejes said EPAM’s “pure AI” revenue exceeded $125 million in the first quarter, up nearly 20% sequentially from the fourth quarter. He said that performance gives the company “a strong line of sight” to its $600 million full-year AI revenue target, despite broader macro variability in its outlook.
Market Got It Wrong—Why Progress Software Deserves a Second LookThe company also highlighted a strategic multi-year applied AI partnership with Anthropic. Fejes said EPAM is building a dedicated practice targeting more than 10,000 Claude Certified Architects, including 250 “forward-deployed engineering black belts.” He said more than 20,000 EPAM employees have completed training through Anthropic Academy, more than 1,300 are Claude certified, and the company expects to reach 5,000 certifications by the end of the third quarter and 10,000 by year-end.
Fejes described the Anthropic relationship as an expansion rather than a pivot for EPAM. In response to an analyst question, he said EPAM expects to go to market with Anthropic on applied AI solutions and focus on “safe AI capabilities” for enterprises.
Management said demand for AI-native work remains strong. Fejes said more than 80% of EPAM’s top 100 clients are engaged in AI initiatives, and the company launched more than 100 new AI-native projects in the quarter. He also said EPAM is seeing a growing pipeline of large, AI-enabled vendor consolidation opportunities that are larger than its historical norm and use a range of commercial models.
Verticals and Regions Show Mixed Growth Peterson said EPAM delivered broad-based growth across most industry verticals in the first quarter:
Financial services revenue increased 11.5% year over year, driven by asset management and insurance clients. Software and high tech revenue grew 10.9%, supported by existing clients and new logos. Consumer goods, retail and travel revenue rose 7.2%, led by retail and consumer goods. Life sciences and healthcare revenue increased 5.9%, driven primarily by life sciences and med tech clients. Business information and media declined 0.7%. Emerging verticals grew 6.8%, driven by energy and government. Geographically, the Americas represented 57% of first-quarter revenue and grew 2.5% year over year. EMEA accounted for 41% of revenue and grew 15.9%, or 8.4% in constant currency. APAC represented 2% of revenue and grew 1.2%.
Fejes said client sentiment remained stable through the end of the first quarter, with spending continuing to shift toward AI-native and strategic deployments. However, he also said there is “more macro uncertainty today compared to 90 days ago,” particularly in North America, which is contributing to lower visibility in the second half of the year.
Guidance Lowered on Uncertainty EPAM lowered its full-year revenue growth outlook. Peterson said the company now expects 2026 revenue growth of 4% to 6.5%, including an expected positive foreign exchange impact of about 1.5%. Organic constant currency growth is now expected to be in the range of 2.5% to 5%.
The company maintained its full-year profitability outlook, expecting GAAP income from operations of 10% to 11% of revenue and non-GAAP income from operations of 15% to 16%. Full-year GAAP diluted EPS is now expected to be $8.29 to $8.59, while non-GAAP diluted EPS is expected to be $12.98 to $13.28.
For the second quarter, EPAM expects revenue of $1.4 billion to $1.415 billion, representing 4% year-over-year growth at the midpoint. Organic constant currency growth is expected to be 2.7% at the midpoint. The company guided for second-quarter GAAP diluted EPS of $1.79 to $1.87 and non-GAAP diluted EPS of $3.10 to $3.18.
Peterson said the lower full-year revenue outlook reflects the expected impact of higher energy prices and global economic uncertainty. He said the company began seeing delayed decision-making from a handful of customers in April and May. Fejes said EPAM is not assuming a significant change in the geopolitical environment in its guidance.
Large Deal Pipeline and Client Spending Trends During the question-and-answer session, analysts focused on the company’s second-half growth assumptions and large-deal pipeline. Fejes said EPAM is pursuing close to 10 outsized opportunities tied to vendor consolidation and enterprise AI transformation. He said the deals are outside EPAM’s historical norm, are not traditional time-and-materials engagements, and include commercial models involving AI and token economics.
Peterson said the guidance assumes EPAM captures only a “small subset” of those opportunities on a risk-adjusted basis. Fejes added that reaching the midpoint of the guidance range does not require EPAM to win many of the large deals, describing the midpoint as dependent on steady execution and typical deal conversion.
Management also addressed where weakness is appearing. Fejes said the travel and consumer sectors are showing some impact, while financial services and high tech continue to show strong demand. He said some clients are shifting IT budgets toward AI spending and away from areas such as digital platform or e-commerce buildouts.
Cash Flow, Headcount and Capital Allocation EPAM reported negative operating cash flow of $36 million in the first quarter, compared with positive operating cash flow of $24 million in the prior-year period. Free cash flow was negative $54 million, compared with positive free cash flow of $15 million a year earlier. Peterson said cash flow was affected by higher variable compensation payments tied to 2025 performance and the timing of certain vendor payments.
The company ended the quarter with just over $1 billion in cash and cash equivalents. EPAM repurchased approximately 1.8 million shares for $264 million during the quarter at an average price of $143.84 per share. Peterson said the company has returned approximately $1.5 billion in cash to shareholders since initiating its share repurchase program.
EPAM ended the quarter with more than 56,500 delivery professionals and more than 62,750 total employees. Peterson said the company reduced headcount in Mexico and made targeted reductions in certain geographies as part of its cost optimization program. Utilization was 77%, compared with 77.5% a year earlier and 75.4% in the fourth quarter of 2025.
On capital allocation, Peterson said EPAM expects to continue some open-market share repurchases while also looking at potential M&A opportunities later in the year. He said areas of interest include domain capabilities, data assets and geographic opportunities, most likely in Asia-Pacific.
About EPAM Systems NYSE: EPAMEPAM 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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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.
On May 13, 2026, EPAM Systems Inc EPAM shares fell 5.0% today, bringing the current price to $90.39. This decline continues a troubling trend for the stock, which has now dropped 27.7% over the past month and 55.9% year-to-date. The stock has traded within a 52-week range of $89.25 to $222.53.
GF Value™ verdict: Current price of $90.39 is 64.5% below the GF Value™ estimate of $254.94.GF Score™ of 82/100 indicates a strong overall rating.Most notable signal: No insider selling activity reported in the last 3 months. Is EPAM Overvalued or Undervalued? Currently, EPAM Systems Inc is trading significantly below its GF Value™, which estimates the intrinsic value of the stock at $254.94. This suggests that the shares are undervalued, presenting a potential opportunity for investors who believe in the company's long-term growth prospects. The 64.5% margin of safety indicates a substantial discount to the calculated fair value, aligning with the GF Valuation label of "Significantly Undervalued." GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
Despite the favorable valuation, it is crucial to approach this opportunity with caution. The stock has experienced a significant downturn, and while the valuation metrics suggest upside potential, external factors affecting the market or the company’s specific performance could pose risks to any anticipated recovery in share price.
How Does EPAM's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)13.0x32.3x Forward P/E7.0xN/A EPAM's current P/E (TTM) of 13.0x is significantly below its 5-year median P/E of 32.3x, indicating that the stock is trading at a much lower valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, confirming that the stock is undervalued based on its historical performance metrics.
What Does EPAM's GF Score™ Tell Us? MetricRating GF Score™82 Financial Strength8/10 Profitability9/10 Growth8/10 Valuation2/10 Momentum4/10 The GF Score™ of 82/100 suggests that EPAM Systems Inc has a strong overall rating, particularly in areas such as Profitability (9/10) and Financial Strength (8/10). However, the Valuation rank of 2/10 indicates that the stock is viewed as significantly undervalued, which could be an area of concern for potential investors looking for a balance of growth and value. The Momentum rank of 4/10 reflects the recent negative price trend, suggesting caution in the short term.
What Are Insiders Doing with EPAM Stock? In the last three months, there has been no insider selling activity reported for EPAM Systems Inc, indicating that company insiders have not liquidated their holdings. This absence of selling could signal confidence among insiders regarding the future performance of the stock, as they have chosen to retain their shares during a period of market volatility.
What This Means for Investors Based on the GF Value™ analysis, EPAM Systems Inc is currently undervalued, presenting a potential opportunity for future appreciation in stock price. However, investors should be mindful of the recent downward trends and broader market conditions that may affect the company's recovery.
For the complete analysis, visit the EPAM Systems Inc EPAM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is EPAM's GF Score™?
EPAM's GF Score™ is 82/100, indicating a strong overall rating based on various factors including financial strength and profitability.
Is EPAM overvalued or undervalued?
EPAM is currently undervalued, as its market price of $90.39 is significantly below the GF Value™ estimate of $254.94.
What is EPAM's P/E ratio?
EPAM's P/E (TTM) is 13.0x, which is 60% below its 5-year median P/E of 32.3x, indicating that the stock is trading at a considerably lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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.
On May 20, 2026, EPAM Systems Inc EPAM shares rose 3.8% today, bringing the current price to $104.30. This movement occurs within a 52-week range of $89.25 to $222.53, indicating significant volatility over the past year.
GF Value™ verdict: EPAM is currently priced at $104.30, compared to a GF Value™ estimate of $255.14, indicating the stock is 59.1% undervalued.GF Score™ of 80/100 signifies a strong overall rating in terms of financial health and growth potential.Insider activity shows no buying or selling, suggesting stability or lack of confidence from insiders in the near term. Is EPAM Overvalued or Undervalued? Currently, EPAM shares are significantly undervalued according to the GF Value™, which estimates the fair value at $255.14. This implies a margin of safety of 59.1%, presenting an appealing opportunity for potential investors. The GF Valuation label categorizes EPAM as "Significantly Undervalued," indicating that the market may not fully recognize the company's intrinsic value. This could be due to the stock's recent performance, which has seen a year-to-date decline of 49.1%.
While the undervaluation presents an opportunity, it is essential to consider the risk factors associated with such a significant price drop over the past year. Factors contributing to this decline may include market sentiment, competitive pressures in the software industry, or broader economic conditions. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does EPAM's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 15.0x 32.3x Forward P/E 8.1x N/A EPAM's current P/E (TTM) of 15.0x is significantly below its 5-year median P/E of 32.3x, indicating that the stock is trading at a substantial discount compared to its historical valuation. The forward P/E of 8.1x further emphasizes this undervaluation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the perspective that the stock is significantly undervalued at present.
What Does EPAM's GF Score™ Tell Us? Metric Rating GF Score™ 80/100 Financial Strength 7/10 Profitability 9/10 Growth 8/10 Valuation 2/10 Momentum 4/10 The GF Score™ of 80/100 indicates a strong overall rating for EPAM, particularly in the areas of Profitability (9/10) and Growth (8/10), suggesting the company has solid financial health and potential for future expansion. However, the Valuation rank of 2/10 points to significant undervaluation, indicating that the market may not be fully appreciating the company's fundamentals. The Financial Strength rating of 7/10 further supports the positive outlook, while the Momentum rank of 4/10 suggests some challenges in terms of stock price performance.
What Are Insiders Doing with EPAM Stock? In the last three months, there has been no insider buying or selling activity reported for EPAM Systems Inc. This lack of activity could suggest a sense of stability among insiders or a lack of confidence in the stock's immediate prospects. The absence of selling could indicate that insiders believe the current price does not reflect the company's true value, although the lack of buying may also imply caution in the current market environment.
What This Means for Investors Based on the GF Value™ assessment, EPAM Systems Inc is currently undervalued, presenting a significant opportunity for potential investors. The strong GF Score™ and favorable financial metrics support the notion that, despite recent challenges, the company has solid fundamentals and growth potential. However, prospective investors should remain cautious of the risks associated with recent stock performance and market conditions.
For the complete analysis, visit the EPAM Systems Inc EPAM stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is EPAM's GF Score™?
The GF Score™ for EPAM is 80/100, indicating a strong overall rating based on financial health, profitability, growth potential, valuation, and momentum.
Is EPAM overvalued or undervalued?
EPAM is currently undervalued, with a GF Value™ of $255.14 compared to its current price of $104.30, indicating a significant margin of safety.
What is EPAM's P/E ratio?
EPAM's P/E (TTM) is 15.0x, which is 54% below its 5-year median P/E of 32.3x, highlighting its undervaluation compared to historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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 >>
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 popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
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.
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 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 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 +23.7% 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.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease 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 7.64; value investors should take notice.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.28 to $13.06 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.
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.
Mortgage rates ticked higher again this week, reaching their loftiest level since August and adding another headwind to an already strained housing market. The average rate on a 30-year fixed mortgage climbed to 6.53%, up from 6.51% the prior week, according to Freddie Mac, arriving at a nine-month high during what is traditionally the most critical stretch of the year for home sales.
The Nasdaq Composite has turned higher, up 0.77% on the day.
May 28, 2026 at 11:12 AM EDT
Nebius Group (Nasdaq: NBIS) stock is soaring by 8% today on the heels of an impressive earnings print in which revenue soared by a triple-digit percentage. The company also clinched a multi-billion-dollar contract with Meta Platforms (Nasdaq; META), helping to buoy sentiment even further.
May 28, 2026 at 9:59 AM EDT
Snowflake (NYSE:SNOW | SNOW Price Prediction) delivered a Q1 report that is turning heads, posting product revenue of $1.33 billion and product gross profit of $947.5 million, while GAAP operating loss came in at $326.2 million and GAAP EPS of -$0.86. Alongside the numbers, the cloud data platform announced a $6 billion, five-year commitment to Amazon Web Services and formalized a multi-year strategic collaboration with AWS centered on accelerating enterprise agentic AI adoption. The partnership is already generating traction, with customers including Fetch and Hex actively deploying AI applications on the Snowflake platform. Snow stock is soaring by 35% today.
This article will be updated throughout the day, so check back often for more daily updates.
The Nasdaq Composite dipped 0.2% Thursday in a session defined by cautious optimism on the inflation front and a fresh flare-up in Middle East tensions that sent oil prices climbing back above $90 a barrel. It was a day of offsetting forces, with an in-line inflation reading offering some relief before geopolitical headlines moved back to center stage.
April’s Personal Consumption Expenditures price index came in at a seasonally adjusted 0.4% monthly gain, with the 12-month rate holding at 3.8%, matching economist expectations. The cooler monthly print gave traders a measure of comfort that pricing pressures may be starting to ease, though with inflation still running well above the Federal Reserve’s 2% target, the all-clear is far from sounded.
Oil reasserted itself as a market variable, with WTI crude futures rising roughly 2% to top $90 a barrel and Brent gaining nearly 2% to push above $96, after Iran’s Revolutionary Guard claimed it targeted a U.S. airbase, according to the Tasnim News Agency, following fresh U.S. military strikes on an Iranian military site. The escalation revived concerns over Strait of Hormuz disruptions that markets had only recently begun to look past.
The U.S. economy grew at a 1.6% annualized rate in the first quarter, falling short of the 2.0% estimate and coming in below the initially reported pace, according to the latest GDP revision from the Commerce Department. The downward revision adds to a growing list of data points suggesting the economy is losing some momentum, though the reading still marks a meaningful step up from the prior quarter’s 0.5% growth rate
The session’s standout mover was Snowflake (NYSE:SNOW), which soared 38% in premarket trading after delivering a Q1 earnings and revenue beat alongside stronger-than-expected fiscal Q2 guidance. The company also announced a five-year, $6 billion commitment to Amazon (Nasdaq: AMZN) Web Services.
Here’s a look at where things stand as of morning trading:
Dow Jones Industrial Average: 50,545 Down 0.19%
Nasdaq Composite: 26,595 Down 0.30%
S&P 500: 7,509 Down 0.14%
Market Movers FedEx Freight (NYSE:FDXF) is heading to the S&P 500, with the trucking spinoff set to join the index on June 1st, replacing EPAM Systems (NYSE:EPAM) in the process. The addition marks FedEx Freight’s first major index milestone since being spun off from its parent company, a move that is expected to trigger automatic buying from the vast pool of funds benchmarked to the S&P 500.
IBM (NYSE:IBM) is making a decade-defining bet on quantum computing, committing more than $10 billion to the technology over the next five years according to a regulatory filing. The company also reaffirmed its target to deliver its first large-scale fault-tolerant quantum computer by 2029, a milestone that would mark a significant leap from today’s error-prone systems and push IBM to the forefront of what many consider the next major frontier in computing.
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.
Energy companies gain faster decision making and competitive advantage through integrated, barrier-free workflows
, /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital and AI transformation company, with TGS, a leading provider of energy data and intelligence, today announced the successful deployment of TGS Imaging AnyWare® on Amazon Web Services (AWS). TGS has begun the migration of its imaging systems to AWS Cloud to leverage the agility, cost and performance benefits of elastic cloud infrastructure. The next-generation platform enables select seismic imaging workflows to run much faster with lower computing costs, improving service delivery to energy companies. This milestone advances the Companies' ongoing work to optimize and AI-enable workflows across the energy sector.
EPAM and TGS Announce Strategic Collaboration to Accelerate AI Adoption at Scale in Energy Sector Energy companies face mounting pressure to extract value from subsurface data faster and more cost-effectively than ever before. The technical barriers are significant: managing petabyte-scale seismic datasets, running deeply parallel imaging and interpretation workloads efficiently and scaling computational capacity without locking capital into infrastructure that can't flex with project demands. Traditional, on-premises systems struggle to meet these requirements, creating bottlenecks that delay critical exploration and production decisions. TGS has now brought a modernized platform into production that addresses these challenges directly, built in collaboration with EPAM, on AWS, to deliver integrated, cloud-native workflows at scale.
"True digital transformation in energy requires partners who understand both the technical complexity and the operational realities of the sector," said Jason Harman, SVP, Head of Business ME & APAC, Energy at EPAM. "Our collaboration with TGS on AWS aims to deliver capabilities that weren't economically or technically feasible before — enabling energy companies to extract more value from subsurface data, faster and at scale."
The collaboration delivers three core capabilities that modernize subsurface operations:
Subsurface Data as a Service – TGS Data Verse delivers centralized, secure and democratized access to seismic and well data through an OSDU-compliant, EPAM-engineered streaming architecture — enabling in-browser visualization and on-demand delivery that accelerates exploration and production decision-making. Cloud-Native Seismic Imaging at Scale – TGS Imaging AnyWare, modernized by EPAM on AWS, will deliver benchmarked performance gains on select seismic imaging workflows through AWS Graviton-based instances and cost reductions vs on-demand pricing using AWS Spot generic instances. Composable Workflows and AI Enablement – EPAM's Energy HPC Orchestrator (EHO), built on AWS cloud infrastructure, enables modular, end-to-end subsurface workflows, with TGS shaping next-generation capabilities. "TGS has a bold vision for the future of seismic imaging, and AWS is providing the elastic compute, AI services and purpose-built infrastructure to help make it a reality," said Joseph Santamaria, General Manager, Energy & Utilities at AWS. "Together with EPAM, we're helping TGS move energy operators from data to discovery faster and more cost-effectively than ever before."
EPAM's migration of TGS Imaging AnyWare to AWS represents a broader shift in how subsurface operations can be modernized for the cloud era. By bridging TGS's vision to become an AI-native geoscience company with AWS's computational scale and EPAM's cloud engineering expertise, the collaboration establishes an infrastructure foundation for AI-enabled energy workflows that on-premises operations were never built to deliver.
"The collaboration between TGS and both EPAM and AWS has delivered not just new technical capabilities, but a fundamentally better cost-performance model that adds agility and the latest computing innovations to our operations," said Wadii El Karkouri, Executive Vice President of Technology at TGS. "The result is computational gravity, drawing the right data, expertise and infrastructure into a unified environment that transforms complexity into competitive advantage for energy companies."
Learn how EPAM helps energy companies break through integration barriers, accelerate innovation and unlock competitive advantage through AI-native transformation at epam.com/services/partners/aws/amazon-web-services-energy-and-utilities.
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.
About TGS
TGS provides advanced data and intelligence to companies active in the energy sector. With leading-edge technology and solutions spanning the entire energy value chain, TGS offers a comprehensive range of insights to help clients make better decisions. Our broad range of products and advanced data technologies, coupled with a global, extensive and diverse energy data library, make TGS a trusted partner in supporting the exploration and production of energy resources worldwide. For further information, please visit www.tgs.com.
About Amazon Web Services
Amazon Web Services (AWS) is guided by customer obsession, pace of innovation, commitment to operational excellence, and long-term thinking. By democratizing technology for nearly two decades and making cloud computing and generative AI accessible to organizations of every size and industry, AWS has built one of the fastest-growing enterprise technology businesses in history. Millions of customers trust AWS to accelerate innovation, transform their businesses, and shape the future. With the most comprehensive AI capabilities and global infrastructure footprint, AWS empowers builders to turn big ideas into reality. Learn more at aws.amazon.com and follow @AWSNewsroom.
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.
Investors seeking exposure to digital transformation can choose between global scale and specialized agility. Deciding whether to buy Accenture (ACN +1.43%) or EPAM Systems (EPAM +2.82%) depends on your preference for stability versus growth.
Accenture is a professional services giant with hundreds of thousands of employees serving the world's largest corporations. EPAM Systems operates as a digital engineering specialist, focusing on complex software development and platform builds. Comparing them reveals how different sizes and strategies influence financial performance for long-term investors.
The case for AccentureAccenture occupies a massive footprint within the broader world of tech stocks, providing services ranging from cloud migration to supply chain overhauls. The company employs approximately 786,000 people and serves more than 9,000 clients, including three-quarters of the Fortune Global 500. Its strategy focuses on helping large enterprises integrate new technologies like generative artificial intelligence into their daily operations.
During its 2025 fiscal year (FY), the company generated $69.7 billion in revenue, representing a growth rate of 7.4% over the prior year. Net income for the same period reached $7.7 billion. This resulted in a net margin of 11%, showing the company's ability to remain profitable while operating at a massive global scale.
As of its August 2025 balance sheet, the company maintained a debt-to-equity ratio of 0.3x. This measures a company's financial leverage by comparing total debt to shareholder equity. The current ratio, which shows if a business has enough short-term assets to cover its upcoming bills, was nearly 1.4x. Free cash flow for the fiscal year reached a robust $10.9 billion.
The case for EPAM SystemsEPAM Systems differentiates itself by focusing on digital engineering and high-end software development for ambitious startups and global enterprises. The firm employs over 62,750 professionals and serves more than 345 Forbes Global 2000 clients. While it is smaller than its peers, it focuses on complex product development rather than general consulting. Note that the top five clients accounted for 13.7% of total revenues, which adds a layer of concentration risk to the business.
In FY 2025, the company reported revenue of $5.5 billion, which was an increase of nearly 15.4% compared to the previous year. Net income for the fiscal year was $377.7 million. The net margin for this period reached 6.9%, as the company continues to invest in expanding its global delivery capabilities.
As of its December 2025 balance sheet, the company maintained long-term debt exceeding $25 million, exhibiting a low debt-to-equity ratio comparable to Accenture. Its current ratio was nearly 2.6x, and free cash flow reached $612.7 million. Note that stock-based compensation represented 27% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparisonAccenture faces risks from global economic volatility, as clients may defer large consulting projects during periods of uncertainty. The company must also navigate intense competition from firms like IBM while rapidly adapting to technology shifts in artificial intelligence. Additionally, its extensive work with government clients subjects it to strict compliance audits and the risk of contract terminations due to political budgetary shifts.
EPAM Systems carries unique risks due to its significant operations in Ukraine and Belarus, where geopolitical instability could disrupt business continuity. The company also faces the risk that automated AI tools could reduce the demand for traditional software development services. Furthermore, its reliance on a smaller pool of major clients means the loss of a single contract could have a meaningful impact on its financial results compared to larger competitors.
Valuation comparisonEPAM Systems appears to be the more affordable stock based on both revenue and future earnings estimates.
MetricAccentureEPAM SystemsSector BenchmarkForward P/E11.9x7.5x43.1xP/S ratio1.6x0.9xSector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Accenture and EPAM Systems are both large tech consulting companies that have seen share prices fall in 2026. The rise of artificial intelligence has created concerns on Wall Street that their businesses could see reduced relevance.
That may well be the case for EPAM. While it saw strong sales growth exceeding 15% in 2025, it forecasted year-over-year revenue growth for 2026 to be in the range of 4.0% to 6.5%. That’s also a drop from initial estimates of up to 7.5% year-over-year growth. In the first quarter, EPAM reported $1.4 billion in revenue, up 7.6% year over year.
On May 6, EPAM announced a partnership with Anthropic to certify its team of consultants on the AI giant’s technology. This move may help EPAM’s revenue growth.
Accenture experienced solid sales growth in its fiscal second quarter ended Feb. 28. The company reported 8% year-over-year growth in sales to $18 billion. It also raised its full-year free cash flow (FCF) estimate to a range of $10.8 billion to $11.5 billion.
FCF is a key metric for investors because Accenture pays a dividend, boasting a 3.7% yield as of June 8. EPAM Systems does not offer a dividend.
Factoring in EPAM’s decelerating sales growth while Accenture is maintaining revenue expansion and growing FCF, the better stock to buy in 2026 in Accenture.
