DailyIQ
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Last updated 1 minute ago

EPAM·EPAM Systems, Inc.

$.
+. (+.%)
After Hours
High
$91.49
Open
$87.70
Market Cap
4.50B
52W High
$222.53
Low
$87.16
P. Close
$89.94
P/E
11.64
52W Low
$73.06
Fwd P/E
6.36
DailyIQ Est.
$146.20
Technical Score (1D)
59
BUY
News Sentiment
50
MIXED
EPAM’s latest trading session was weighed by a mix of market sentiment and earnings expectations that tempered investor enthusiasm. The company’s revenue growth was buoyed by stronger client demand, reflecting a broader trend of digital‑transformation spending in the tech sector. However, macroeconomic headwinds, such as rising interest rates and inflationary pressures, have dampened overall market sentiment and could constrain future growth. Competitive pressures from emerging low‑cost consulting firms and regulatory changes in data privacy are cited as potential risks that could erode EPAM’s market share. These factors suggest that the stock may experience volatility over the next 1–10 trading days as investors digest the balance between upside revenue momentum and downside risk. The market will likely focus on EPAM’s upcoming earnings release, which will provide clearer guidance on revenue growth and margin resilience. Analysts will also watch for any updates on regulatory developments that could affect the company’s data‑handling contracts. Additionally, the broader tech sector’s reaction to macro data releases, such as inflation reports and Fed policy statements, will influence EPAM’s short‑term performance. Traders should monitor the company’s guidance for any sign of tightening margins or client churn that could signal a shift in the competitive landscape.
Earnings Summary
EPAM Systems, Inc. is a global provider of digital platform engineering and software development services, helping clients across financial services, consumer goods, and healthcare modernize legacy systems and build innovative products; the company operates within the broader technology sector, specifically the information technology services industry. In the most recent two quarters, Q4 2025 and Q1 2026, revenue rose from $1,407.6 million to $1,400.1 million, a modest decline from the $1,353.4 million seen in Q2 2025, while EPS fell from $3.26 to $2.86, indicating a slowdown in earnings momentum compared to the $2.77 EPS in Q2 2025; EPAM consistently beat analyst estimates in five of the six quarters examined, with Q1 2026 marking the first miss as EPS fell below the $3.10 estimate. Historically, the company has maintained a positive year‑over‑year trajectory, with revenue increasing from $1,248.4 million in Q4 2024 to $1,407.6 million in Q4 2025 and EPS climbing from $2.84 to $3.26 over the same period, underscoring a pattern of robust earnings growth even as the latest quarter shows a dip; the consistent beat record suggests resilient profitability, though the recent miss signals potential volatility. Recent analyst commentary reflects this mixed outlook, with Argus Research and Deutsche Bank adjusting target prices downward amid concerns over demand and competitive positioning, while the firm’s AI partnership initiatives—such as the Databricks AI Partner of the Year award and collaboration with TGS—highlight a strategic pivot toward high‑growth AI services that could offset index‑related inflow losses; these developments are likely to influence investor sentiment and valuation. Investors should watch for the Q2 2026 earnings release and any guidance on revenue and margin expansion, particularly how the AI partnership pipeline translates into contract wins, as well as cost‑control measures that may help sustain EPS growth in the face of a slowing revenue trajectory.

EPS

EstBeatMiss
$2.12$2.44$2.77$3.09$3.41Q1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$3.14 - -
Q1'26$3.10$2.86-7.8%
Q4'25$3.22$3.26+1.3%
Q3'25$3.03$3.08+1.7%
Q2'25$2.61$2.77+6.0%
Q1'25$2.27$2.41+6.1%

Revenue

EstBeatMiss
$1.3B$1.3B$1.4B$1.4B$1.5BQ1'25Q2'25Q3'25Q4'25Q1'26Q2'26
QtrEstActual+/−
Q2'26$1.4B - -
Q1'26$1.4B$1.4B-1.6%
Q4'25$1.4B$1.4B-0.7%
Q3'25 - $1.4B -
Q2'25 - $1.4B -
Q1'25 - $1.3B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

EPAM Stock Snapshot

EPAM is currently trading at $89.85, giving EPAM Systems, Inc. a market cap of 4.50B and a P/E ratio of 11.6. Today's range spans $87.16–$91.49, with shares opening at $87.70 and moving down $0.09 (0.1%) from the prior close. DailyIQ's technical score sits at 59/100 (HOLD) with a news sentiment reading of 50/100.

Over the past year EPAM has traded between $73.06 and $222.53 - the current price is +23.0% off the 52-week low and -59.6% from the high. 28 analysts cover the stock with a Buy consensus and a mean 12-month target of $135.94 (range $83.00–$235.00), implying upside of +51.3%.

Sector laggard risk is elevated for EPAM Systems, Inc. (EPAM): small-cap, Technology, 4.50B market cap, 59/100 (HOLD), sentiment neutral at 50/100. Price: $89.85 (near 52-week lows). The current P/E ratio stands at 11.6. When the broader Technology sector outperforms but a small-cap constituent can't produce better than a HOLD read, company-specific issues - rather than macro tailwinds - are the primary driver. Annual range: $73.06–$222.53. Identifying those company-specific factors is the key analytical task in the current setup.

Small-cap Technology names with HOLD technicals (59/100) and neutral sentiment (50/100) like EPAM tend to experience sentiment-driven re-ratings more sharply in both directions. At $89.85 (near 52-week lows in $73.06–$222.53), the current setup suggests a stock that needs a material positive catalyst — not incremental improvement — to reverse the technical and sentiment readings that now define the 4.50B market cap trajectory.