EPAM Systems (NYSE:EPAM) Posts Earnings Results, Beats Expectations By $0.10 EPS

EPAM Systems (NYSE:EPAM) posted its quarterly earnings data on Thursday. The information technology services provider reported $3.26 EPS for the quarter, topping analysts’ consensus estimates of $3.16 by $0.10, Briefing.com reports. EPAM Systems had a return on equity of 13.16% and a net margin of 7.01%.The firm had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.39 billion. During the same quarter last year, the business posted $2.84 EPS. The firm’s quarterly revenue was up 12.8% compared to the same quarter last year. EPAM Systems updated its FY 2026 guidance to 12.600-12.900 EPS and its Q1 2026 guidance to 2.700-2.780 EPS.

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

• EPAM beat expectations in Q4 with $1.4B revenue (+12.8% reported, +5.6% organic), strong operating cash flow ($283M in Q4; $613M free cash flow for 2025) and active share buybacks (≈$661M in 2025), supporting capital returns.
• Management highlighted accelerating AI-native momentum — >$105M of pure AI-native revenue in Q4 and a target to scale AI-native revenues to in excess of $600M in 2026 (company uses a tight definition that excludes foundational/AI-assisted work).
• 2026 guidance is modest/cautious: reported revenue growth of 4.5%–7.5% (organic 3%–6% after ~1.5% FX tailwind), non‑GAAP operating margin of 15%–16%, and non‑GAAP EPS of $12.60–$12.90, assuming continued Ukraine delivery productivity.
• A headwind from NEORIS’s largest client (sequential mid-single-digit decline into Q1) is expected to shave about 1 percentage point off 2026 organic growth, and longer procurement cycles for large AI programs may delay revenue realization into later quarters.

EPAM Systems Trading Up 0.7%

NYSE:EPAM traded up $1.03 on Friday, hitting $140.19. 611,126 shares of the stock were exchanged, compared to its average volume of 1,040,014. The stock has a fifty day moving average of $201.68 and a 200-day moving average of $178.70. The stock has a market cap of $7.74 billion, a PE ratio of 21.38, a PEG ratio of 2.01 and a beta of 1.72. The company has a current ratio of 3.02, a quick ratio of 3.02 and a debt-to-equity ratio of 0.01. EPAM Systems has a fifty-two week low of $128.78 and a fifty-two week high of $223.45.

Insider Activity

In other news, SVP Boris Shnayder sold 5,000 shares of the business’s stock in a transaction dated Wednesday, December 10th. The stock was sold at an average price of $207.00, for a total transaction of $1,035,000.00. Following the completion of the sale, the senior vice president owned 15,645 shares in the company, valued at approximately $3,238,515. The trade was a 24.22% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 4.30% of the company’s stock.

Hedge Funds Weigh In On EPAM Systems

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Price T Rowe Associates Inc. MD grew its position in EPAM Systems by 849.3% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 784,101 shares of the information technology services provider’s stock valued at $160,649,000 after acquiring an additional 701,500 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in EPAM Systems by 56.9% during the 4th quarter. JPMorgan Chase & Co. now owns 1,147,930 shares of the information technology services provider’s stock valued at $235,188,000 after purchasing an additional 416,324 shares in the last quarter. Royal Bank of Canada increased its stake in EPAM Systems by 216.1% during the 4th quarter. Royal Bank of Canada now owns 552,523 shares of the information technology services provider’s stock worth $113,201,000 after buying an additional 377,708 shares during the period. Alyeska Investment Group L.P. lifted its holdings in EPAM Systems by 79.1% in the 3rd quarter. Alyeska Investment Group L.P. now owns 644,988 shares of the information technology services provider’s stock worth $97,258,000 after buying an additional 284,840 shares in the last quarter. Finally, Millennium Management LLC boosted its position in EPAM Systems by 84.1% in the 4th quarter. Millennium Management LLC now owns 618,278 shares of the information technology services provider’s stock valued at $126,673,000 after buying an additional 282,499 shares during the last quarter. 91.58% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

EPAM has been the topic of a number of analyst reports. JPMorgan Chase & Co. raised their target price on shares of EPAM Systems from $201.00 to $215.00 and gave the stock an “overweight” rating in a research report on Friday, November 7th. Truist Financial reduced their price target on EPAM Systems from $220.00 to $146.00 and set a “hold” rating on the stock in a research note on Friday. Morgan Stanley set a $160.00 price objective on EPAM Systems in a research report on Friday. The Goldman Sachs Group dropped their target price on EPAM Systems from $250.00 to $235.00 and set a “buy” rating for the company in a research note on Thursday. Finally, TD Cowen restated a “buy” rating on shares of EPAM Systems in a report on Friday, January 9th. Eleven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $207.44.

Key Headlines Impacting EPAM Systems

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

• Positive Sentiment: Q4 results beat expectations — Non‑GAAP EPS $3.26 vs. $3.16 consensus and revenue $1.408B, +12.8% year‑over‑year, showing continued top‑line growth. EPAM Reports Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Full‑year 2026 guidance was raised: EPS guidance of $12.60–$12.90 (above Street consensus) and revenue target of ~$5.7B–$5.9B — a sign management sees durable demand longer term. Listen to Conference Call
• Positive Sentiment: Management highlights AI-driven demand across key sectors (financial services, healthcare, retail), which helped double‑digit growth and supports medium‑term secular tailwinds. EPAM Systems Q4 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Q1 guidance was issued roughly in line with Street expectations (EPS range 2.70–2.78), so the company isn’t flagging a near‑term collapse, but the guidance lacked upside surprise. EPAM forecasts first-quarter results in line with estimates
• Neutral Sentiment: Operational/strategy update: EPAM is repositioning India as a co‑innovation hub for life sciences and healthcare — a longer‑term strategic move but not immediately value‑driving. EPAM repositions India as co-innovation hub for life sciences, healthcare
• Negative Sentiment: Shares fell sharply after the call — investors reacted to management’s cautious tone around near‑term demand and commentary that failed to deliver upside for the upcoming quarter. EPAM shares tumble as cautious quarterly outlook disappoints
• Negative Sentiment: The sell‑off pushed EPAM to a 52‑week low as some investors viewed the guidance/call tone as a signal to reduce exposure despite the beat; commentary pieces highlight the stock’s steep drop and potential volatility ahead. EPAM Systems stock sinks to 52-week low – here’s why

EPAM Systems Company Profile

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.