DailyIQ
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Sector:TechnologyAll sectors
Last updated 34 minutes ago

EPAM·EPAM Systems, Inc.

$.
+. (+.%)
High
$104.25
Open
$100.72
Market Cap
5.31B
52W High
$222.53
Low
$99.19
P. Close
$101.43
P/E
13.74
52W Low
$89.25
Fwd P/E
7.28
Mean Target
$147.88
Technical Score (1D)
14
SELL
News Sentiment
42
BEARISH
Jefferies has downgraded EPAM Systems to Hold from Buy, reducing its price target to $110 from $130, reflecting a more cautious analyst sentiment. This downgrade follows EPAM's Q1 adjusted EPS of $2.86, which surpassed analyst expectations, yet the stock has significantly underperformed the broader market and its sector ETF. Despite the earnings beat, shares experienced a decline post-release, indicating ongoing investor concerns. The company is also being scrutinized within the context of value investing, with articles suggesting a need for deeper investigation into its fundamentals to assess the sustainability of its valuation against potential headwinds. Traders should monitor EPAM's financial health and competitive positioning as the market weighs these mixed signals.
Earnings Summary
EPAM Systems, Inc. is a global provider of digital platform engineering and software development services, operating in the Information Technology Services sector. The company assists clients across various industries in their technological transformations, offering services in cloud, data analytics, customer experience design, and cybersecurity. For its most recent reported quarter, Q1 2026, EPAM reported actual EPS of $2.86, missing the estimate of $3.10, with revenue at $1.40 billion against an estimate of $1.42 billion. This followed a Q4 2025 where actual EPS was $3.26, beating the estimate of $3.22, with revenue at $1.41 billion, slightly below the $1.42 billion estimate. The preceding two quarters, Q2 2025 and Q3 2025, showed actual EPS of $2.77 and $3.08, both beating estimates of $2.61 and $3.03 respectively, with revenues of $1.35 billion and $1.39 billion. This pattern indicates a mixed recent performance, with two EPS beats and two misses in the last four quarters, and revenue generally meeting or slightly missing estimates. Historically, EPAM has demonstrated a consistent annual revenue growth of 14.8%, and the recent quarters show a pattern of revenue growth, though EPS performance against estimates has been inconsistent. Recent news indicates a lowered price target for EPAM to $152.46, reflecting recalibrated market expectations, though the company remains a key player in digital transformation. Further news suggests that soft headline earnings in a recent quarter were impacted by unusual items totaling $74 million, which may not recur, potentially improving future profitability. Another analyst report lowered the price target to $90.00, indicating a more cautious sentiment. For future performance, investors should watch for the impact of the unusual items on upcoming earnings reports and whether the company's strategic focus on digital transformation can lead to more consistent EPS beats. Key will be to monitor analyst commentary and any potential upward revisions to forecasts following the resolution of non-recurring expenses.

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 $103.73, giving EPAM Systems, Inc. a market cap of 5.31B and a P/E ratio of 13.7. Today's range spans $99.19–$104.25, with shares opening at $100.72 and moving up $2.30 (2.3%) from the prior close. DailyIQ's technical score sits at 14/100 (SELL) with a news sentiment reading of 42/100.

Over the past year EPAM has traded between $89.25 and $222.53 - the current price is +16.2% off the 52-week low and -53.4% from the high. 28 analysts cover the stock with a Buy consensus and a mean 12-month target of $147.88 (range $110.00–$235.00), implying upside of +42.6%.

Institutional disinterest is quantifiable for EPAM - at 5.31B in Technology market cap, a SELL signal (14/100) alongside neutral sentiment (42/100) typically marks the point where active managers move this name to a lower-priority watch list. Price: $103.73 (near 52-week lows). (P/E: 13.7) Annual range: $89.25–$222.53. Reduced coverage and declining volume in small-cap names often create self-reinforcing cycles - the absence of buyers becomes the primary risk rather than the presence of sellers.

Small-cap Technology names with SELL technicals (14/100) and neutral sentiment (42/100) like EPAM tend to experience sentiment-driven re-ratings more sharply in both directions. At $103.73 (near 52-week lows in $89.25–$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 5.31B market cap trajectory.