EPAM Systems (NYSE:EPAM) Issues Earnings Results, Beats Estimates By $0.11 EPS

EPAM Systems (NYSE:EPAM) posted its quarterly earnings results on Thursday. The information technology services provider reported $2.86 EPS for the quarter, topping analysts’ consensus estimates of $2.75 by $0.11, FiscalAI reports. EPAM Systems had a return on equity of 14.71% and a net margin of 6.96%.The company had revenue of $1.40 billion for the quarter, compared to analysts’ expectations of $1.39 billion. During the same period in the previous year, the firm earned $2.41 EPS. The firm’s revenue was up 7.6% compared to the same quarter last year. EPAM Systems updated its Q2 2026 guidance to 3.100-3.180 EPS.

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

• Q1 revenue was $1.4B (up 7.6% YoY; 3.7% organic CC) with improved GAAP and non‑GAAP profitability and EPS, but management lowered full‑year revenue growth to 4%–6.5% (organic 2.5%–5%), signaling slower near‑term visibility.
• Pure AI revenues exceeded $125M in Q1 (≈20% sequential) and EPAM reiterated a $600M AI revenue target for 2026, backed by a multi‑year Anthropic partnership and rapid certification ramp (≈1,300 Claude‑certified now; 10,000 goal by year‑end).
• Management highlighted a growing pipeline of nearly 10 large, non‑T&M AI‑enabled vendor‑consolidation and transformation opportunities that could drive outsized H2 growth if converted, though wins are being risk‑adjusted in the outlook.
• Q1 operating cash flow was negative $36M (free cash flow negative $54M), yet EPAM holds about $1B cash and repurchased $264M of shares in Q1 (≈$1.5B returned to date), with continued buybacks and selective M&A signaled for later in the year.

EPAM Systems Price Performance

NYSE:EPAM traded down $4.89 during trading hours on Friday, reaching $99.35. The stock had a trading volume of 2,435,713 shares, compared to its average volume of 1,519,407. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.59 and a current ratio of 2.67. EPAM Systems has a 52 week low of $98.76 and a 52 week high of $222.53. The company has a 50 day moving average price of $131.21 and a two-hundred day moving average price of $168.98. The stock has a market capitalization of $5.21 billion, a PE ratio of 14.25, a PEG ratio of 1.01 and a beta of 1.45.

Institutional Trading of EPAM Systems

A number of large investors have recently added to or reduced their stakes in EPAM. Brighton Jones LLC bought a new stake in EPAM Systems in the 4th quarter worth approximately $218,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of EPAM Systems by 68.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,539 shares of the information technology services provider’s stock valued at $1,611,000 after purchasing an additional 3,880 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of EPAM Systems by 53.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 335,150 shares of the information technology services provider’s stock valued at $56,587,000 after purchasing an additional 117,170 shares during the last quarter. United Services Automobile Association bought a new position in shares of EPAM Systems during the 1st quarter valued at approximately $229,000. Finally, Empowered Funds LLC increased its position in shares of EPAM Systems by 134.1% during the 1st quarter. Empowered Funds LLC now owns 2,254 shares of the information technology services provider’s stock valued at $381,000 after purchasing an additional 1,291 shares during the last quarter. Institutional investors own 91.58% of the company’s stock.

EPAM Systems News Summary

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

• Positive Sentiment: EPAM beat Q1 estimates, reporting $2.86 in non-GAAP EPS versus $2.75 expected and revenue of $1.40 billion versus $1.39 billion expected, with sales up 7.6% year over year. EPAM Reports Results for First Quarter 2026
• Positive Sentiment: The company raised its profit outlook for the year, now expecting non-GAAP diluted EPS of $12.98 to $13.28 and GAAP EPS of $8.29 to $8.59. Reuters coverage of EPAM profit forecast increase
• Positive Sentiment: EPAM announced an applied AI partnership with Anthropic, which could support longer-term client demand and positioning. EPAM forecasts 4%-6.5% 2026 revenue growth amid applied AI partnership with Anthropic
• Neutral Sentiment: Several analysts cut price targets after the report, including Citi to $112 from $145 and Wells Fargo to $151 from $195, reflecting reduced near-term expectations but still leaving upside from current levels. Benzinga analyst updates
• Neutral Sentiment: Needham also lowered its target to $135 from $175, while keeping a buy rating, and Guggenheim trimmed its target earlier this week amid concerns about Q2 revenue outlook. Benzinga analyst updates
• Negative Sentiment: Despite the earnings beat, EPAM cut its 2026 revenue-growth outlook to 4.0% to 6.5% year over year, or 2.5% to 5.0% on an organic constant-currency basis, which appears to be the main reason investors are selling the stock. EPAM Reports Results for First Quarter 2026

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on EPAM shares. Susquehanna lowered their price target on EPAM Systems from $199.00 to $167.00 and set a “positive” rating on the stock in a report on Monday, May 4th. JPMorgan Chase & Co. lowered their price target on EPAM Systems from $215.00 to $183.00 and set an “overweight” rating on the stock in a report on Friday, February 20th. The Goldman Sachs Group cut EPAM Systems from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $215.00 to $110.00 in a report on Friday. Citigroup lowered their price target on EPAM Systems from $145.00 to $112.00 and set a “neutral” rating on the stock in a report on Friday. Finally, Morgan Stanley set a $112.00 price target on EPAM Systems in a report on Friday. Eight analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, EPAM Systems has an average rating of “Hold” and a consensus target price of $160.08.

About EPAM Systems

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM’s offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.