EPAM Systems, Inc. (EPAM) AI Stock Analysis

EPAM Systems, Inc. specializes in digital platform engineering and software development services. Its offerings span requirements analysis, platform selection, customization, cross-platform migration, implementation, and integration. The company also provides infrastructure management covering private, public, and mobile setups, along with application, database, network, server, and storage operations. Additional capabilities include operational solutions with smart automation, software testing and quality assurance consulting, and advisory services across business, technology, and data domains. Headquartered in Newtown, Pennsylvania, EPAM delivers service design and program management across diverse industries, incorporating developments in artificial intelligence, robotics, and virtual reality.

EPAM increased annual revenue from $3.76B in FY2021 to $5.46B in FY2025, achieving a 5-year revenue CAGR of 15.5%. After revenue fell 2.8% in FY2023, growth resumed at 0.8% in FY2024 and accelerated to 15.4% in FY2025. Gross margin contracted from 33.9% in FY2021 to 26.5% in FY2025, while operating margin declined from 14.4% to 9.6%. FY2025 net income stood at $377.7M with EPS of $10.84. In the trailing twelve months ended June 30, 2026, revenue reached $5.62B with an operating margin of 10.9% and EPS of $7.37. For the latest quarter ended June 30, 2026, quarterly revenue grew 4.5% year-over-year while quarterly earnings expanded 26.3%.

As of June 30, 2026, EPAM held $789.4M in cash and short-term investments against $152.2M in total debt, yielding a net cash position of $637.2M. The company maintains a current ratio of 2.75 and a debt-to-equity ratio of 0.04 on $3.52B of shareholders' equity. In FY2025, operating cash flow reached $654.9M and free cash flow was $612.7M. Capital expenditures were $42.2M in FY2025, while share buybacks totaled $662.2M, helping lower the share count by 11.8% over 5 years.

At $122.19, EPAM carries a market cap of $6.30B and an enterprise value of $5.04B. The stock trades at a trailing P/E of 16.6x and a forward P/E of 8.3x, compared to the median of its US-listed Technology peers of 28.1x and 18.8x, respectively. Its EV/EBITDA stands at 7.0x versus the peer median of 16.6x, and its price-to-sales is 1.1x versus 2.8x. Over the past year, the stock fell 14.1% while the S&P 500 (SPY) gained 16.8%, and its 5-year return is -80.3% compared to an 83.0% gain for the index.

Wall Street coverage includes 7 Strong Buy, 2 Buy, and 10 Hold ratings, with no Sell or Strong Sell ratings. The mean price target is $123.35, representing a 1.0% premium over the last close of $122.19. For the fiscal year ending December 31, 2026, consensus estimates project EPS of $13.15, reflecting 14.4% growth, on $5.66B in revenue. For the following fiscal year, 18 analysts forecast EPS of $14.02 on revenue of $5.86B. EPAM beat EPS estimates in all 4 of the last 4 quarters, with its next earnings date scheduled for November 5, 2026.

This page is an AI-written research summary of EPAM Systems, Inc. (EPAM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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