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

EPAM Systems (NYSE:EPAM) issued its quarterly earnings data on Thursday. The information technology services provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.75 by $0.11, FiscalAI reports. EPAM Systems had a net margin of 6.96% and a return on equity of 14.71%. The firm had revenue of $1.40 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period last year, the firm posted $2.41 EPS. EPAM Systems’s quarterly revenue 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 Performance

EPAM traded down $4.89 during trading hours on Friday, hitting $99.35. The company’s stock had a trading volume of 2,435,713 shares, compared to its average volume of 1,519,407. EPAM Systems has a fifty-two week low of $98.76 and a fifty-two week high of $222.53. The company has a current ratio of 2.67, a quick ratio of 2.59 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $5.21 billion, a PE ratio of 14.25, a PEG ratio of 1.01 and a beta of 1.45. The company has a 50-day simple moving average of $131.21 and a 200 day simple moving average of $168.98.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on EPAM shares. TD Cowen reduced their price objective on EPAM Systems from $220.00 to $213.00 and set a “buy” rating for the company in a research report on Monday, April 6th. Weiss Ratings cut EPAM Systems from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday. Morgan Stanley set a $112.00 target price on EPAM Systems in a research report on Friday. Citigroup lowered their target price on EPAM Systems from $145.00 to $112.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Guggenheim lowered their target price on EPAM Systems from $225.00 to $200.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Eight equities research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, EPAM Systems currently has an average rating of “Hold” and a consensus price target of $160.08.

EPAM Systems News Roundup

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

Hedge Funds Weigh In On EPAM Systems

Several hedge funds have recently modified their holdings of the company. JPMorgan Chase & Co. increased its position in shares of EPAM Systems by 56.9% during the 4th quarter. JPMorgan Chase & Co. now owns 1,147,930 shares of the information technology services provider’s stock valued at $235,188,000 after purchasing an additional 416,324 shares during the period. Dimensional Fund Advisors LP increased its position in shares of EPAM Systems by 9.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 849,896 shares of the information technology services provider’s stock valued at $174,130,000 after purchasing an additional 75,211 shares during the period. Price T Rowe Associates Inc. MD increased its position in shares of EPAM Systems by 849.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 784,101 shares of the information technology services provider’s stock valued at $160,649,000 after purchasing an additional 701,500 shares during the period. Alyeska Investment Group L.P. increased its position in shares of EPAM Systems by 79.1% during the 3rd quarter. Alyeska Investment Group L.P. now owns 644,988 shares of the information technology services provider’s stock valued at $97,258,000 after purchasing an additional 284,840 shares during the period. Finally, Millennium Management LLC increased its position in shares of EPAM Systems by 84.1% during the 4th quarter. Millennium Management LLC now owns 618,278 shares of the information technology services provider’s stock valued at $126,673,000 after purchasing an additional 282,499 shares during the period. 91.58% of the stock is currently owned by institutional investors and hedge funds.

About EPAM Systems

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.