EPAM Systems (NYSE:EPAM) Shares Gap Up Following Strong Earnings

EPAM Systems, Inc. (NYSE:EPAM)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $137.36, but opened at $156.20. EPAM Systems shares last traded at $157.9090, with a volume of 509,896 shares changing hands.

The information technology services provider reported $3.51 EPS for the quarter, topping analysts’ consensus estimates of $3.41 by $0.10. EPAM Systems had a net margin of 7.15% and a return on equity of 15.84%. The business’s revenue for the quarter was up 2.3% on a year-over-year basis. During the same quarter in the prior year, the business posted $3.08 earnings per share.

Key EPAM Systems News

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

• Positive Sentiment: EPAM raised its FY26 outlook, projecting revenue growth of 3.5%–3.7% and non-GAAP diluted EPS of $13.23–$13.31. It also expects Q4 adjusted EPS of $3.50–$3.58. EPAM third-quarter results
• Positive Sentiment: Third-quarter non-GAAP diluted EPS rose 14% year over year to $3.51, while operating margins improved. The company also increased its share-repurchase authorization by $1.5 billion, plans a $500 million accelerated repurchase, and committed to returning at least 50% of free cash flow annually from 2027 through 2029. EPAM third-quarter results
• Neutral Sentiment: Revenue increased 2.3% year over year to $1.426 billion, indicating growth but at a modest pace. EPAM third-quarter results
• Negative Sentiment: A provided earnings report cites EPS of $3.19 versus a $3.41 consensus estimate. However, EPAM’s release reports $3.51 in non-GAAP diluted EPS, so the figures appear to use different measures. EPAM earnings data

Wall Street Analysts Forecast Growth

EPAM has been the subject of a number of analyst reports. Weiss Ratings upgraded EPAM Systems from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, October 23rd. JPMorgan Chase & Co. cut EPAM Systems from an “overweight” rating to a “neutral” rating and set a $120.00 price objective on the stock. in a research note on Wednesday, August 26th. Citigroup increased their price objective on EPAM Systems from $100.00 to $140.00 and gave the company a “neutral” rating in a report on Monday, October 26th. Wells Fargo & Company raised their target price on shares of EPAM Systems from $125.00 to $156.00 and gave the company an “overweight” rating in a research note on Monday, October 26th. Finally, Mizuho set a $130.00 target price on shares of EPAM Systems in a report on Monday, August 10th. Six investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $125.40.

Hedge Funds Weigh In On EPAM Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Fulcrum Asset Management LLP increased its position in EPAM Systems by 96,341.9% during the third quarter. Fulcrum Asset Management LLP now owns 29,897 shares of the information technology services provider’s stock worth $3,203,000 after buying an additional 29,866 shares during the last quarter. Allspring Global Investments Holdings LLC acquired a new stake in shares of EPAM Systems in the third quarter valued at approximately $3,602,000. University of Texas Texas AM Investment Management Co. lifted its position in shares of EPAM Systems by 236.2% in the third quarter. University of Texas Texas AM Investment Management Co. now owns 232 shares of the information technology services provider’s stock valued at $25,000 after buying an additional 163 shares during the last quarter. Inscription Capital LLC bought a new position in shares of EPAM Systems during the 3rd quarter worth approximately $520,000. Finally, Chicago Partners Investment Group LLC boosted its stake in shares of EPAM Systems by 31.2% during the 3rd quarter. Chicago Partners Investment Group LLC now owns 8,467 shares of the information technology services provider’s stock worth $1,154,000 after acquiring an additional 2,015 shares during the period. Institutional investors own 91.58% of the company’s stock.

EPAM Systems Price Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.75 and a current ratio of 2.75. The firm has a market capitalization of $8.24 billion, a price-to-earnings ratio of 21.64, a price-to-earnings-growth ratio of 1.44 and a beta of 1.28. The business has a fifty day moving average of $119.78 and a two-hundred day moving average of $121.86.

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.