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

EPAM Systems (NYSE:EPAM) issued its earnings results on Thursday. The information technology services provider reported $3.51 earnings per share for the quarter, topping the consensus estimate of $3.41 by $0.10, Briefing.com reports. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. EPAM Systems had a net margin of 7.53% and a return on equity of 16.76%. EPAM Systems’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $3.08 EPS.

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

• EPAM exceeded the high end of its Q3 outlook, with revenue up 2.3% year over year and organic constant-currency growth of 2.5%. Non-GAAP operating margin rose to 16.7%, and non-GAAP diluted EPS increased 14% to $3.51.
• AI-native revenue topped $185 million, or about 13% of total revenue, with the company raising its 2026 target from $600 million to at least $650 million. EPAM also signed three large, multiyear deals in financial services and energy, expected to begin ramping in 2027.
• EPAM announced plans to return at least 50% of free cash flow annually to shareholders in 2027–2029 and expects to enter a $500 million accelerated share repurchase agreement. The board authorized $1.8 billion in repurchases through 2029.
• Growth remains uneven: software and high tech, consumer goods/retail/travel, and business information and media declined in Q3, while North America is expected to continue underperforming in Q4. Q4 organic constant-currency growth is forecast at 0.5%–1.6%, and management said a return to double-digit growth is not expected in 2027.
• Management expects 2027 non-GAAP operating margin of 15%–16% and cautioned that gross margin may be modestly lower, citing reduced benefits from Poland’s R&D tax incentive and normalizing variable compensation. The company plans continued investment in AI capabilities and go-to-market efforts.

EPAM Systems Price Performance

Shares of NYSE EPAM traded down $6.87 during trading on Friday, hitting $158.83. The company had a trading volume of 3,339,845 shares, compared to its average volume of 1,262,095. The firm has a market capitalization of $8.19 billion, a price-to-earnings ratio of 19.85, a price-to-earnings-growth ratio of 1.66 and a beta of 1.28. The stock has a fifty day simple moving average of $121.86 and a two-hundred day simple moving average of $121.40. The company has a quick ratio of 2.75, a current ratio of 2.76 and a debt-to-equity ratio of 0.01. EPAM Systems has a fifty-two week low of $73.06 and a fifty-two week high of $222.53.

Wall Street Analysts Forecast Growth

A number of research firms have issued reports on EPAM. Wedbush lifted their price objective on EPAM Systems from $99.00 to $160.00 and gave the stock a “neutral” rating in a research note on Friday. Truist Financial upped their target price on shares of EPAM Systems from $110.00 to $150.00 and gave the stock a “hold” rating in a research note on Friday. Mizuho set a $130.00 price target on shares of EPAM Systems in a research report on Monday, August 10th. Morgan Stanley raised their price target on shares of EPAM Systems from $97.00 to $140.00 and gave the company an “equal weight” rating in a report on Wednesday. Finally, TD Cowen dropped their price target on EPAM Systems from $131.00 to $120.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Six research analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $143.73.

Trending Headlines about EPAM Systems

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

• Positive Sentiment: Third-quarter non-GAAP EPS of $3.51 topped the $3.41 consensus, and revenue of $1.426 billion exceeded estimates of $1.42 billion, rising 2.3% year over year. EPAM also raised its 2026 outlook, forecasting full-year non-GAAP EPS of $13.23–$13.31 and revenue growth of 3.5%–3.7%. EPAM Reports Results for Third Quarter 2026
• Positive Sentiment: EPAM expanded its remaining share-repurchase authorization to $1.8 billion, plans a $500 million accelerated repurchase, and committed to return at least 50% of free cash flow to shareholders annually from 2027 through 2029. It also lifted its 2026 AI-native revenue target to $650 million. EPAM shareholder-return and AI revenue plans
• Positive Sentiment: Several firms raised price targets after the results. Susquehanna lifted its target to $190 with a positive rating, while Wells Fargo raised its target to $176 and maintained an overweight rating. Susquehanna recommendations
• Neutral Sentiment: Revenue growth remains in the low single digits, which may temper enthusiasm despite the earnings beat and improved outlook. Analyst views are also mixed: Truist kept a hold rating and Wedbush a neutral rating after raising their targets. EPAM 2026 earnings guidance

EPAM Systems Company Profile

EPAM Systems, Inc is a global digital engineering and technology services company that helps organizations design, develop and modernize software and digital platforms. Its services support digital transformation initiatives across industries, including financial services, healthcare, life sciences, retail, travel and consumer products.

The company provides software engineering, product development, consulting, cloud services, data and analytics, artificial intelligence, cybersecurity, quality assurance and platform engineering.