EPAM Systems (NYSE:EPAM) Shares Gap Down – Should You Sell?

EPAM Systems, Inc. (NYSE:EPAM) shares gapped down prior to trading on Thursday . The stock had previously closed at $109.87, but opened at $87.35. EPAM Systems shares last traded at $94.3230, with a volume of 513,344 shares.

EPAM Systems News Roundup

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

• Positive Sentiment: EPAM reported second-quarter non-GAAP earnings of $3.38 per share, above the $3.14 analyst consensus and up from $2.77 a year earlier. Revenue reached $1.415 billion, up 4.5% year over year and roughly in line with expectations. EPAM Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Operating profitability improved: GAAP operating margin rose to 10.8% from 9.3%, while the non-GAAP margin increased to 16.4% from 15.0%. EPAM also repurchased $85 million of stock during the quarter and $409 million year to date. EPAM Reports Results for Second Quarter 2026
• Neutral Sentiment: EPAM’s third-quarter outlook calls for non-GAAP EPS of $3.38 to $3.46, above the $3.33 consensus. Revenue guidance of approximately $1.4 billion is broadly consistent with analyst expectations.
• Neutral Sentiment: Full-year non-GAAP EPS guidance of $13.08 to $13.24 is above the $12.53 consensus, suggesting continued cost control and margin support. However, the company expects full-year revenue of $5.6 billion to $5.7 billion, with organic constant-currency growth of only 2% to 3%.
• Negative Sentiment: EPAM lowered its full-year revenue-growth forecast to 3.2%–4.2%, citing weak demand for software services. The reduced outlook signals slower bookings and pressure on future top-line growth, overshadowing the quarterly earnings beat. EPAM cuts annual revenue forecast on weak software services demand
• Negative Sentiment: Morgan Stanley lowered its price target for EPAM to $100, adding to investor concerns about the company’s growth outlook. Morgan Stanley Lowers EPAM Systems Price Target

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. The Goldman Sachs Group cut shares of EPAM Systems from a “buy” rating to a “neutral” rating and dropped their target price for the company from $215.00 to $110.00 in a report on Friday, May 8th. Wells Fargo & Company lowered their price target on shares of EPAM Systems from $151.00 to $125.00 and set an “overweight” rating for the company in a research report on Friday, July 10th. Guggenheim cut their price objective on shares of EPAM Systems from $225.00 to $200.00 and set a “buy” rating on the stock in a report on Monday, May 4th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of EPAM Systems in a research note on Tuesday. Finally, Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $85.00 target price on shares of EPAM Systems in a report on Friday, July 10th. Seven analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $132.64.

EPAM Systems Stock Performance

The company has a market capitalization of $5.07 billion, a PE ratio of 13.94, a price-to-earnings-growth ratio of 1.06 and a beta of 1.39. The company has a current ratio of 2.67, a quick ratio of 2.67 and a debt-to-equity ratio of 0.05. The business’s fifty day moving average is $91.39 and its two-hundred day moving average is $124.86.

EPAM Systems (NYSE:EPAM) last issued its earnings results on Wednesday, August 5th. The information technology services provider reported $3.38 EPS for the quarter, beating the consensus estimate of $3.14 by $0.24. The business had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.41 billion. EPAM Systems had a return on equity of 14.71% and a net margin of 6.96%.The company’s revenue was up 4.6% compared to the same quarter last year. During the same period last year, the business posted $2.77 EPS. Equities research analysts predict that EPAM Systems, Inc. will post 10.4 earnings per share for the current year.

Institutional Investors Weigh In On EPAM Systems

Large investors have recently bought and sold shares of the business. Asset Management One Co. Ltd. lifted its stake in EPAM Systems by 2.5% in the 4th quarter. Asset Management One Co. Ltd. now owns 2,074 shares of the information technology services provider’s stock worth $439,000 after purchasing an additional 51 shares in the last quarter. Rothschild Investment LLC grew its position in shares of EPAM Systems by 51.4% in the fourth quarter. Rothschild Investment LLC now owns 159 shares of the information technology services provider’s stock valued at $33,000 after purchasing an additional 54 shares in the last quarter. Horizon Investments LLC grew its position in shares of EPAM Systems by 6.4% in the fourth quarter. Horizon Investments LLC now owns 928 shares of the information technology services provider’s stock valued at $190,000 after purchasing an additional 56 shares in the last quarter. Banco Bilbao Vizcaya Argentaria S.A. increased its holdings in shares of EPAM Systems by 4.5% in the fourth 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 purchasing an additional 67 shares during the last quarter. Finally, Bradley Foster & Sargent Inc. CT lifted 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 worth $550,000 after buying an additional 74 shares in the last quarter. 91.58% of the stock is currently owned by institutional investors.

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.