EPAM Systems, Inc.
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Range $85 – $167
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About the company
EPAM Systems, Inc. is a leading global provider of comprehensive digital platform engineering and software development solutions. The company's extensive service portfolio includes: Engineering Services: From initial requirements analysis and strategic platform selection to tailored customization, seamless cross-platform migration, and robust implementation and integration of new systems.
- CEO
- Balazs Fejes
- IPO
- 2012
- Employees
- 62,850
- HQ
- Newtown, PA, US
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Similar companies
Peers in the same neighborhood.
- Market Cap
- $5.74B
- P/E
- 14.84
- Fwd P/E
- 8.37
- PEG
- 3.09
- P/S
- 1.02
- P/B
- 1.63
- EV/EBITDA
- 7.46
- Div Yield
- 0.00%
- Gross Margin
- 28.33%
- Op Margin
- 10.26%
- Net Margin
- 7.15%
- ROE
- 11.19%
- ROIC
- 11.07%
Latest fiscal year · YoY change
- Revenue
- $5.46B+15.4%
- Gross Profit
- $1.45B-0.1%
- Op Income
- $521.16M
- Net Income
- $377.68M-16.9%
- EPS
- $6.76-14.8%
- OCF Growth
- +17.1%
- FCF Growth
- +16.3%
- 52W High
- $222.53
- 52W Low
- $73.06
- 50D MA
- $109.30
- 200D MA
- $130.06
- Beta
- 1.38
- RSI (14)
- 49
- Avg Volume
- 1.40M
Earnings call summaries
Pick a quarter — each call distilled into takeaways, results, and a bull vs bear read.
EPAM beat Q2 expectations and expanded margins, but lowered full-year revenue guidance as North America and Software & Hi-Tech weakened and AI-led large deals are now expected to contribute mainly in 2027.· August 6, 2026
- Q2 revenue was $1.415 billion, up 4.5% year over year, with organic constant-currency growth of 3.4%.
- GAAP gross margin improved to 30.4% from 28.8%, and non-GAAP gross margin rose to 32.0% from 30.1%.
- Non-GAAP EPS was $3.38, up 22% year over year; GAAP EPS was $1.97, up 26.3%.
- AI native revenue exceeded $160 million and represented over 11% of the business, marking a sixth straight quarter of double-digit sequential growth.
- Management cut 2026 revenue guidance but raised profit expectations, citing very slow North America growth and delayed timing for larger AI-related deals.
Q2 revenue was $1.415 billion, increasing 4.5% year over year, and organic constant-currency revenue grew 3.4%. GAAP gross margin was 30.4% versus 28.8% a year ago, while non-GAAP gross margin was 32.0% versus 30.1%. GAAP diluted EPS was $1.97, up from $1.56, and non-GAAP diluted EPS was $3.38, up from $2.77. GAAP income from operations rose 20.4% to $152 million, and non-GAAP income from operations rose 14.7% to $233 million. For the full year 2026, EPAM now expects revenue growth of 3.2% to 4.2%, organic constant-currency growth of 2% to 3%, GAAP operating margin of 10.5% to 11%, non-GAAP operating margin of 15.5% to 16%, GAAP EPS of $8.22 to $8.38, and non-GAAP EPS of $13.08 to $13.24. For Q3, the company guided to revenue of $1.410 billion to $1.425 billion and non-GAAP EPS of $3.38 to $3.46.
Balazs Fejes said the quarter showed EPAM is progressing on its AI strategy, with AI native revenue accelerating and partnerships with OpenAI, Google, Anthropic and others helping build a full-stack AI-native organization. He emphasized that AI is increasing enterprise complexity and that EPAM’s opportunity is in modernization, data, cyber resilience and forward-deployed engineering rather than simple code generation. His tone was confident on the long-term strategy but candid that North America is underperforming and that the second half of 2026 will be uneven.
Jason Peterson said Q2 results beat the high end of guidance for organic growth, profitability and EPS. He highlighted the margin improvement, including GAAP gross margin of 30.4%, non-GAAP gross margin of 32.0%, GAAP operating margin of 10.8%, and non-GAAP operating margin of 16.4%. Cash flow was weaker in the quarter, with operating cash flow of negative $2 million and free cash flow of negative $18 million, driven by higher variable compensation payments and increased DSO to 82 days. He noted cash and cash equivalents of about $800 million, repurchases of about 1.3 million shares, and said the company still expects to return to 80% to 90% free cash flow conversion beyond 2026.
Analysts pressed on why the outlook was cut, whether the North America weakness was macro-driven or company-specific, and how long it would take for the commercial transformation to work. Management said the issue is largely idiosyncratic: clients are shifting spending away from task-based services toward AI-led modernization and infrastructure, while EPAM’s North America go-to-market has not been strong enough, especially in Software & Hi-Tech. Questions also focused on cash flow, pricing, and the large-deal pipeline; management said Q2 cash flow was hurt by payment timing, pricing improved earlier in the year, and the larger AI-related deals are progressing but are not expected to contribute meaningful revenue until early 2027.
The positive case is that EPAM is still growing, margins are improving, and AI native revenue is compounding quickly at more than $160 million in Q2 and over 11% of the business. Management also described strength in financial services, life sciences and EMEA, plus a growing pipeline of larger AI-related and vendor-consolidation deals. The company said it is building capabilities and certifications with major AI partners and believes the strategy is working where the commercial motion is in place.
The main risks are slower North America growth, weakness in Software & Hi-Tech, and the fact that larger AI-led deals are not expected to contribute meaningfully until 2027. Management said clients are reprioritizing budgets away from some of EPAM’s task-based services, and the company acknowledged its North America go-to-market has not been operating at the needed level. Cash flow was also weak in Q2, with negative free cash flow and higher DSO, and management expects a slower revenue growth rate in the second half of 2026.
AI summary of the company's earnings call · Paraphrased · Not investment advice
- Free Float
- 96.5%
- Shares Outstanding
- 52.24M
- Float Shares
- 50.43M
of shares held by institutions
552 13F filers
Buy/sell ratio 0.00. Sells can include pre-scheduled 10b5-1 plan sales, not just discretionary selling.
Congressional trading
Senate and House stock disclosures for EPAM, newest first.
| Member | Type | Traded | |
|---|---|---|---|
| Gilbert Ray CisnerosHouse · CA31 | Sell | Apr 14, 26 | Filing → |
| Gilbert Ray CisnerosHouse · CA31 | Buy | Mar 13, 26 | Filing → |
| Ro KhannaHouse · CA17 | Sell | Jan 29, 26 | Filing → |
| Ro KhannaHouse · CA17 | Sell | Sep 29, 25 | Filing → |
| Lisa C. McClainHouse · MI09 | Sell | Aug 4, 25 | Filing → |
| Lisa C. McClainHouse · MI09 | Buy | Jul 22, 25 | Filing → |
| Jefferson ShreveHouse · IN06 | Sell | May 12, 25 | Filing → |
| Jefferson ShreveHouse · IN06 | Buy | Mar 31, 25 | Filing → |
| Jefferson ShreveHouse · IN06 | Sell | Feb 24, 25 | Filing → |
| Ro KhannaHouse · CA17 | Sell | Sep 9, 24 | Filing → |
| Michael T. McCaulHouse · TX10 | Sell | May 17, 24 | Filing → |
| Michael T. McCaulHouse · TX10 | Sell | May 17, 24 | Filing → |
| Michael T. McCaulHouse · TX10 | Sell | Mar 28, 24 | Filing → |
| Michael T. McCaulHouse · TX10 | Sell | Mar 28, 24 | Filing → |
Source: public STOCK Act disclosures. Filed weeks after the trade — a lagging signal, not a real-time one.
Top institutional holders
Largest 13F positions, with quarter-over-quarter change.
| Holder | Shares | Δ Quarter |
|---|---|---|
| Vanguard Group Inc | 6.98M | ▼ 31.94K |
| Blackrock, Inc. | 6.64M | ▲ 2.55M |
| Ameriprise Financial Inc | 5.46M | ▲ 1.68M |
| Capital World Investors | 4.83M | ▼ 2.02M |
| Vanguard Portfolio Management LLC | 3.47M | ▲ 508.90K |
| Invesco Ltd. | 2.41M | ▼ 1.97M |
| Vanguard Capital Management LLC | 2.28M | ▼ 1.19M |
| State Street Corp | 1.96M | ▼ 277.11K |
| Dimensional Fund Advisors LP | 1.65M | ▲ 579.31K |
| Citadel Advisors LLC | 1.57M | ▲ 1.48M |
| Aikya Investment Management Ltd | 1.37M | ▲ 455.30K |
| Morgan Stanley | 1.25M | ▲ 130.35K |
Held by 472 ETFs
Biggest fund positions in EPAM by dollar value.
Recent insider transactions
Who's buying, who's selling, and how much.
| Date | Insider | Type | Shares |
|---|---|---|---|
| Sep 1, 26 | Fejes Balazs | other | 412 |
| May 21, 26 | Vargo Ronald P | other | 2,132 |
| May 21, 26 | Roman Eugene | other | 2,132 |
| May 22, 26 | Roman Eugene | other | 673 |
| May 21, 26 | Mayoras Richard Michael | other | 2,132 |
| May 21, 26 | McMahon Chandra | other | 2,132 |
| May 21, 26 | Shan Helen L. | other | 2,132 |
| May 21, 26 | Smart Jill | other | 2,132 |
| May 21, 26 | Robb Karl | other | 2,132 |
| May 21, 26 | Segert Robert E. | other | 2,132 |
A “Sell” may be a pre-scheduled 10b5-1 plan sale rather than a discretionary decision — read insider selling with that in mind.
Our EPAM coverage
Recent articles, reports, and earnings notes.
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EPAM Unveils New Frontier AI Service, Bridging the Enterprise Intelligence Gap for GenAI and Autonomous Agents
prnewswire.com · Oct 5
EPAM Systems (NYSE:EPAM) Shares Gap Up – What’s Next?
defenseworld.net · Oct 3
EPAM Announces Date for Third Quarter Earnings Release and Conference Call
prnewswire.com · Oct 2
EPAM Successfully Delivered Cloud Infrastructure and Applications for the European Union's First Equities Consolidated Tape
prnewswire.com · Sep 24
State Street Corp Sells 277,105 Shares of EPAM Systems, Inc. $EPAM
defenseworld.net · Sep 24
Here's Why Epam (EPAM) is a Strong Value Stock
zacks.com · Sep 22
EPAM Systems (NYSE:EPAM) & Snowflake (NYSE:SNOW) Head to Head Contrast
defenseworld.net · Sep 18
Jupiter Topco LLC Invests $1.93 Million in EPAM Systems, Inc. $EPAM
defenseworld.net · Sep 4
Headlines from third-party outlets — TickerSpark isn't affiliated with these sources.
