EPAM Systems (NYSE:EPAM) Shares Gap Up After Strong Earnings

EPAM Systems, Inc. (NYSE:EPAM)’s share price gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $137.36, but opened at $156.20. EPAM Systems shares last traded at $157.9090, with a volume of 509,896 shares trading hands.

The information technology services provider reported $3.51 earnings per share for the quarter, topping analysts’ consensus estimates of $3.41 by $0.10. EPAM Systems had a net margin of 7.15% and a return on equity of 15.84%. The business’s revenue was up 2.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $3.08 earnings per share.

More EPAM Systems News

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

• Positive Sentiment: EPAM raised its FY26 outlook, projecting revenue growth of 3.5%–3.7% and non-GAAP diluted EPS of $13.23–$13.31. It also expects Q4 adjusted EPS of $3.50–$3.58. EPAM third-quarter results
• Positive Sentiment: Third-quarter non-GAAP diluted EPS rose 14% year over year to $3.51, while operating margins improved. The company also increased its share-repurchase authorization by $1.5 billion, plans a $500 million accelerated repurchase, and committed to returning at least 50% of free cash flow annually from 2027 through 2029. EPAM third-quarter results
• Neutral Sentiment: Revenue increased 2.3% year over year to $1.426 billion, indicating growth but at a modest pace. EPAM third-quarter results
• Negative Sentiment: A provided earnings report cites EPS of $3.19 versus a $3.41 consensus estimate. However, EPAM’s release reports $3.51 in non-GAAP diluted EPS, so the figures appear to use different measures. EPAM earnings data

Analyst Upgrades and Downgrades

EPAM has been the topic of a number of analyst reports. Guggenheim increased their price target on EPAM Systems from $140.00 to $160.00 and gave the company a “buy” rating in a research note on Monday. Citigroup lifted their price objective on EPAM Systems from $100.00 to $140.00 and gave the stock a “neutral” rating in a research note on Monday, October 26th. William Blair downgraded EPAM Systems from an “outperform” rating to a “market perform” rating in a report on Thursday, August 6th. JPMorgan Chase & Co. lowered EPAM Systems from an “overweight” rating to a “neutral” rating and set a $120.00 target price on the stock. in a research note on Wednesday, August 26th. Finally, Needham & Company LLC cut their target price on EPAM Systems from $135.00 to $120.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Six equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, EPAM Systems has an average rating of “Hold” and an average price target of $125.40.

Institutional Investors Weigh In On EPAM Systems

Hedge funds have recently bought and sold shares of the company. Fulcrum Asset Management LLP boosted its position in EPAM Systems by 96,341.9% during the 3rd quarter. Fulcrum Asset Management LLP now owns 29,897 shares of the information technology services provider’s stock worth $3,203,000 after acquiring an additional 29,866 shares during the last quarter. Allspring Global Investments Holdings LLC acquired a new stake in shares of EPAM Systems in the third quarter valued at approximately $3,602,000. University of Texas Texas AM Investment Management Co. raised its holdings in shares of EPAM Systems by 236.2% in the third quarter. University of Texas Texas AM Investment Management Co. now owns 232 shares of the information technology services provider’s stock valued at $25,000 after purchasing an additional 163 shares during the last quarter. Inscription Capital LLC bought a new stake in shares of EPAM Systems in the third quarter worth $520,000. Finally, Chicago Partners Investment Group LLC lifted its position in shares of EPAM Systems by 31.2% in the third quarter. Chicago Partners Investment Group LLC now owns 8,467 shares of the information technology services provider’s stock worth $1,154,000 after purchasing an additional 2,015 shares in the last quarter. 91.58% of the stock is currently owned by institutional investors and hedge funds.

EPAM Systems Stock Performance

The stock’s 50-day moving average price is $119.78 and its 200 day moving average price is $121.86. The firm has a market cap of $8.24 billion, a P/E ratio of 21.64, a price-to-earnings-growth ratio of 1.44 and a beta of 1.28. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.75 and a quick ratio of 2.75.

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.