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

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

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 Trading Down 4.1%

Shares of EPAM Systems stock traded down $6.87 on Friday, reaching $158.83. The company had a trading volume of 3,339,845 shares, compared to its average volume of 1,262,095. The firm’s 50 day moving average price is $121.86 and its two-hundred day moving average price is $121.40. The firm has a market cap of $8.19 billion, a PE ratio of 19.85, a PEG ratio of 1.66 and a beta of 1.28. EPAM Systems has a 52-week low of $73.06 and a 52-week high of $222.53. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.75 and a current ratio of 2.76.

EPAM Systems News Summary

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

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on EPAM shares. Citigroup upped their price objective on shares of EPAM Systems from $100.00 to $140.00 and gave the company a “neutral” rating in a report on Monday, October 26th. Wedbush lifted their target price on shares of EPAM Systems from $99.00 to $160.00 and gave the stock a “neutral” rating in a research note on Friday. Susquehanna boosted their target price on shares of EPAM Systems from $146.00 to $190.00 and gave the company a “positive” rating in a report on Friday. Stifel Nicolaus set a $135.00 price target on shares of EPAM Systems in a research note on Thursday, August 6th. Finally, Morgan Stanley raised their price target on shares of EPAM Systems from $97.00 to $140.00 and gave the stock an “equal weight” rating in a report on Wednesday. Six investment analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $143.73.

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.