EPAM Systems (NYSE:EPAM) Announces Earnings Results, Beats Estimates By $0.10 EPS

EPAM Systems (NYSE:EPAM) released its quarterly earnings results on Thursday. The information technology services provider reported $3.26 earnings per share for the quarter, beating the consensus estimate of $3.16 by $0.10, Briefing.com reports. EPAM Systems had a net margin of 7.01% and a return on equity of 13.16%. The business had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.39 billion. During the same quarter in the previous year, the business posted $2.84 earnings per share. The firm’s revenue for the quarter 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 Stock Down 22.0%

Shares of EPAM traded down $36.97 during mid-day trading on Thursday, hitting $130.73. 3,026,447 shares of the company traded hands, compared to its average volume of 987,492. The company has a market capitalization of $7.22 billion, a PE ratio of 19.91, a price-to-earnings-growth ratio of 1.94 and a beta of 1.72. The company has a quick ratio of 3.02, a current ratio of 3.02 and a debt-to-equity ratio of 0.01. The business has a 50 day moving average of $203.12 and a 200 day moving average of $178.98. EPAM Systems has a 1-year low of $128.78 and a 1-year high of $241.04.

Insiders Place Their Bets

In other EPAM Systems news, SVP Boris Shnayder sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $207.00, for a total transaction of $1,035,000.00. Following the completion of the transaction, the senior vice president directly owned 15,645 shares of the company’s stock, valued at approximately $3,238,515. This trade represents a 24.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 4.30% of the company’s stock.

Hedge Funds Weigh In On EPAM Systems

A number of hedge funds have recently bought and sold shares of the business. Corient Private Wealth LLC lifted its position in shares of EPAM Systems by 5,140.2% during the 4th quarter. Corient Private Wealth LLC now owns 171,931 shares of the information technology services provider’s stock valued at $35,225,000 after buying an additional 168,650 shares in the last quarter. Alberta Investment Management Corp acquired a new stake in EPAM Systems in the 4th quarter worth about $1,741,000. Mercer Global Advisors Inc. ADV boosted its holdings in EPAM Systems by 90.7% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 6,989 shares of the information technology services provider’s stock worth $1,432,000 after buying an additional 3,325 shares during the last quarter. Vident Advisory LLC purchased a new stake in EPAM Systems during the 4th quarter worth approximately $217,000. Finally, State of Tennessee Department of Treasury raised its holdings in shares of EPAM Systems by 33.8% during the fourth quarter. State of Tennessee Department of Treasury now owns 20,563 shares of the information technology services provider’s stock valued at $4,289,000 after acquiring an additional 5,190 shares during the last quarter. Hedge funds and other 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: Q4 beats — EPAM reported adjusted EPS of $3.26 vs. consensus ~$3.16 and revenue of $1.408B (up 12.8% YoY), showing double?digit growth that beat expectations. EPAM Systems Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Upbeat EPS guidance — EPAM raised FY?2026 EPS guidance to $12.60–$12.90 (above consensus) and Q1 EPS to $2.70–$2.78, suggesting continued margin/earnings strength even as revenue guidance was roughly in line with Street expectations. EPAM Reports Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: AI demand tailwind — Company commentary and analyst notes point to AI?driven demand across key sectors, which supports secular revenue growth and helps justify the higher EPS outlook. EPAM Systems Q4 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Strategic moves — EPAM is repositioning India as a co?innovation hub for life sciences/healthcare, a longer?term operating positive but not an immediate catalyst. EPAM repositions India as co-innovation hub for life sciences, healthcare
• Neutral Sentiment: Take?private chatter — Some commentaries flag EPAM as a depressed stock that could attract buyout interest; that’s speculative and not an immediate driver. Why These 5 Depressed Stocks Are Flashing Classic Take-Private Signals in 2026
• Negative Sentiment: Investor reaction and guidance concerns — Despite beats, shares fell sharply post?release; coverage notes investors were disappointed by aspects of the guidance language and forward clarity, prompting heavy selling and a slide toward a 52?week low. EPAM Systems Stock Sinks To 52-Week Low – Here’s Why
• Negative Sentiment: Technical pressure — Volume spiked well above average on the sell?off and the stock has moved below key moving averages, increasing the risk of further downside until sentiment stabilizes. EPAM Systems Stock Down 21.5%

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Mizuho upped their price target on shares of EPAM Systems from $225.00 to $228.00 and gave the company an “outperform” rating in a research report on Tuesday, November 11th. Wells Fargo & Company increased their price target on EPAM Systems from $185.00 to $247.00 and gave the company an “overweight” rating in a research note on Wednesday, January 14th. Weiss Ratings reiterated a “hold (c-)” rating on shares of EPAM Systems in a research report on Monday, December 29th. TD Cowen reaffirmed a “buy” rating on shares of EPAM Systems in a research note on Friday, January 9th. Finally, Citigroup raised their price target on shares of EPAM Systems from $170.00 to $225.00 and gave the stock a “neutral” rating in a research note on Thursday, January 29th. Ten investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $214.20.

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.