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

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

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 Price Performance

NYSE EPAM traded down $6.87 on Friday, hitting $158.83. The stock had a trading volume of 3,339,845 shares, compared to its average volume of 1,262,095. 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. The company has a market capitalization of $8.19 billion, a price-to-earnings ratio of 19.85, a price-to-earnings-growth ratio of 1.66 and a beta of 1.28. The firm has a 50-day moving average of $121.86 and a 200-day moving average of $121.40.

Wall Street Analyst Weigh In

EPAM has been the subject of a number of recent research reports. TD Cowen reduced their price objective on shares of EPAM Systems from $131.00 to $120.00 and set a “buy” rating for the company in a research note on Friday, August 7th. Susquehanna increased their target price on EPAM Systems from $146.00 to $190.00 and gave the stock a “positive” rating in a research report on Friday. Needham & Company LLC increased their target price on EPAM Systems from $120.00 to $200.00 and gave the stock a “buy” rating in a research report on Thursday. Weiss Ratings raised EPAM Systems from a “sell (d+)” rating to a “hold (c-)” rating in a report on Friday, October 23rd. Finally, Wedbush raised their price target on EPAM Systems from $99.00 to $160.00 and gave the stock a “neutral” rating in a report on Friday. Six equities research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $143.73.

Key Headlines Impacting EPAM Systems

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

About EPAM Systems

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.