EPAM Systems (NYSE:EPAM) Announces Earnings Results, Beats Expectations By $0.11 EPS

EPAM Systems (NYSE:EPAM) posted its earnings results on Thursday. The information technology services provider reported $2.86 earnings per share (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 business had revenue of $1.40 billion during the quarter, compared to analysts’ expectations of $1.39 billion. During the same period in the prior year, the business earned $2.41 EPS. EPAM Systems’s revenue for the quarter 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 Stock Down 4.7%

EPAM traded down $4.89 during trading hours on Friday, hitting $99.35. 2,435,713 shares of the company’s stock were exchanged, compared to its average volume of 1,519,407. The stock has a market cap of $5.21 billion, a price-to-earnings ratio of 14.25, a PEG ratio of 1.01 and a beta of 1.45. EPAM Systems has a 1-year low of $98.76 and a 1-year high of $222.53. The stock’s 50-day moving average is $131.21 and its two-hundred day moving average is $168.98. The company has a quick ratio of 2.59, a current ratio of 2.67 and a debt-to-equity ratio of 0.05.

Hedge Funds Weigh In On EPAM Systems

Large investors have recently modified their holdings of the business. Banco Bilbao Vizcaya Argentaria S.A. grew its holdings in shares of EPAM Systems by 4.5% in the 4th quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 1,570 shares of the information technology services provider’s stock valued at $322,000 after acquiring an additional 67 shares in the last quarter. Bradley Foster & Sargent Inc. CT boosted its position in EPAM Systems by 2.8% during the fourth quarter. Bradley Foster & Sargent Inc. CT now owns 2,686 shares of the information technology services provider’s stock valued at $550,000 after purchasing an additional 74 shares during the last quarter. Sunbelt Securities Inc. grew 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 purchasing an additional 127 shares in the last quarter. Corient Private Wealth LLC grew its stake in EPAM Systems by 8.1% in the second quarter. Corient Private Wealth LLC now owns 1,823 shares of the information technology services provider’s stock valued at $322,000 after purchasing an additional 137 shares in the last quarter. Finally, Snowden Capital Advisors LLC increased its position in shares of EPAM Systems by 5.5% during the 2nd quarter. Snowden Capital Advisors LLC now owns 2,696 shares of the information technology services provider’s stock worth $477,000 after purchasing an additional 141 shares during the last quarter. 91.58% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

EPAM has been the subject of several research reports. Truist Financial lowered their price objective on shares of EPAM Systems from $146.00 to $112.00 and set a “hold” rating for the company in a research report on Friday. Susquehanna reduced their target price on shares of EPAM Systems from $199.00 to $167.00 and set a “positive” rating for the company in a research note on Monday, May 4th. Guggenheim lowered their target price on EPAM Systems from $225.00 to $200.00 and set a “buy” rating for the company in a report on Monday, May 4th. Weiss Ratings downgraded EPAM Systems from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday. Finally, The Goldman Sachs Group cut EPAM Systems from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $215.00 to $110.00 in a research 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 company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $160.08.

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

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.