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

EPAM Systems (NYSE:EPAM) issued its earnings results on Thursday. The information technology services provider reported $2.86 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.75 by $0.11, FiscalAI reports. The company had revenue of $1.40 billion for the quarter, compared to analyst estimates of $1.39 billion. EPAM Systems had a net margin of 6.96% and a return on equity of 14.71%. The company’s revenue for the quarter was up 7.6% on a year-over-year basis. During the same quarter last year, the firm earned $2.41 EPS. 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 Stock Down 4.7%

EPAM traded down $4.89 during trading on Friday, reaching $99.35. The company 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 current ratio of 2.67 and a quick ratio of 2.59. EPAM Systems has a 12 month low of $98.76 and a 12 month high of $222.53. The business’s fifty day moving average price is $131.21 and its 200 day moving average price is $168.98. The company has a market cap of $5.21 billion, a P/E ratio of 14.25, a PEG ratio of 1.01 and a beta of 1.45.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of EPAM. CYBER HORNET ETFs LLC bought a new position in EPAM Systems in the second quarter valued at approximately $27,000. Sunbelt Securities Inc. lifted its stake in EPAM Systems by 4,233.3% in the fourth quarter. Sunbelt Securities Inc. now owns 130 shares of the information technology services provider’s stock valued at $27,000 after buying an additional 127 shares in the last quarter. MUFG Securities EMEA plc bought a new position in EPAM Systems in the second quarter valued at approximately $30,000. 1248 Management LLC bought a new position in EPAM Systems in the fourth quarter valued at approximately $32,000. Finally, Atlas Capital Advisors Inc. bought a new position in EPAM Systems in the fourth quarter valued at approximately $35,000. Institutional investors own 91.58% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on EPAM. Wells Fargo & Company reduced their target price on shares of EPAM Systems from $195.00 to $151.00 and set an “overweight” rating on the stock in a research note on Friday. TD Cowen lowered their price target on EPAM Systems from $220.00 to $213.00 and set a “buy” rating for the company in a research note on Monday, April 6th. Citigroup lowered their price target on EPAM Systems from $145.00 to $112.00 and set a “neutral” rating for the company in a research note on Friday. Zacks Research cut EPAM Systems from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, January 28th. Finally, JPMorgan Chase & Co. lowered their price target on EPAM Systems from $215.00 to $183.00 and set an “overweight” rating for the company in a research note on Friday, February 20th. Eight analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $160.08.

Key EPAM Systems News

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

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.