EPAM Systems (NYSE:EPAM) Issues Q3 2026 Earnings Guidance

EPAM Systems (NYSE:EPAM) updated its third quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 3.380-3.460 for the period, compared to the consensus earnings per share estimate of 3.330. The company issued revenue guidance of $1.4 billion-$1.4 billion, compared to the consensus revenue estimate of $1.4 billion. EPAM Systems also updated its FY 2026 guidance to 13.080-13.240 EPS.

EPAM Systems Trading Down 15.3%

Shares of EPAM stock traded down $16.85 during mid-day trading on Thursday, reaching $93.02. The stock had a trading volume of 3,793,643 shares, compared to its average volume of 1,669,805. The company has a current ratio of 2.67, a quick ratio of 2.67 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $4.86 billion, a PE ratio of 13.35, a price-to-earnings-growth ratio of 1.04 and a beta of 1.39. EPAM Systems has a 52-week low of $73.06 and a 52-week high of $222.53. The stock’s 50-day moving average price is $91.22 and its two-hundred day moving average price is $124.01.

EPAM Systems (NYSE:EPAM) last posted its earnings results on Wednesday, August 5th. The information technology services provider reported $3.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.14 by $0.24. EPAM Systems had a return on equity of 14.71% and a net margin of 6.96%.The firm had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.41 billion. During the same period in the previous year, the firm earned $2.77 earnings per share. The business’s revenue was up 4.6% compared to the same quarter last year. Equities analysts expect that EPAM Systems will post 10.4 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several analysts recently weighed in on the company. The Goldman Sachs Group downgraded EPAM Systems from a “buy” rating to a “neutral” rating and cut their price target for the stock from $215.00 to $110.00 in a research note on Friday, May 8th. Susquehanna decreased their price target on EPAM Systems from $199.00 to $167.00 and set a “positive” rating for the company in a research note on Monday, May 4th. Truist Financial cut their target price on shares of EPAM Systems from $146.00 to $112.00 and set a “hold” rating for the company in a research report on Friday, May 8th. TD Cowen reduced their target price on shares of EPAM Systems from $170.00 to $131.00 and set a “buy” rating for the company in a report on Thursday, July 9th. Finally, Morgan Stanley cut their price target on EPAM Systems from $112.00 to $100.00 and set an “equal weight” rating for the company in a research note on Tuesday. Seven equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $131.80.

EPAM Systems News Summary

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

• Positive Sentiment: Second-quarter results beat earnings expectations: EPAM reported non-GAAP EPS of $3.38, above the $3.14 consensus estimate, while revenue of $1.415 billion increased 4.5% year over year and was in line with forecasts. Non-GAAP operating margin improved to 16.4% from 15.0%, and non-GAAP EPS rose 22%. EPAM Reports Results for Second Quarter 2026
• Positive Sentiment: Profit guidance was raised relative to expectations: EPAM’s full-year 2026 non-GAAP EPS guidance of $13.08-$13.24 is above the $12.53 analyst consensus, while third-quarter EPS guidance of $3.38-$3.46 also exceeds estimates. The company repurchased $85 million of stock during the quarter and $409 million year to date. EPAM Q2 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Needham remains constructive but lowered its price target: Needham reduced its target from $135 to $120 while maintaining a “buy” rating, indicating continued long-term confidence but less near-term valuation upside. Needham Lowers EPAM Price Target
• Negative Sentiment: Revenue outlook was cut: EPAM now expects full-year revenue growth of 3.2%-4.2%, including organic constant-currency growth of 2.0%-3.0%. The reduction signals weaker demand for software services and was the primary reason for the market’s negative reaction. EPAM Cuts Annual Revenue Forecast on Weak Software Services Demand
• Negative Sentiment: Analyst sentiment weakened: William Blair downgraded EPAM from “outperform” to “market perform,” while Morgan Stanley lowered its price target to $100, adding pressure after the guidance reduction. William Blair Downgrade

Institutional Trading of EPAM Systems

Hedge funds and other institutional investors have recently made changes to their positions in the company. Price T Rowe Associates Inc. MD grew its holdings in shares of EPAM Systems by 849.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 784,101 shares of the information technology services provider’s stock worth $160,649,000 after buying an additional 701,500 shares in the last quarter. JPMorgan Chase & Co. lifted its stake in EPAM Systems by 56.9% during the fourth quarter. JPMorgan Chase & Co. now owns 1,147,930 shares of the information technology services provider’s stock valued at $235,188,000 after purchasing an additional 416,324 shares during the last quarter. Royal Bank of Canada boosted its holdings in shares of EPAM Systems by 216.1% in the fourth quarter. Royal Bank of Canada now owns 552,523 shares of the information technology services provider’s stock worth $113,201,000 after buying an additional 377,708 shares during the period. Alyeska Investment Group L.P. lifted its stake in shares of EPAM Systems by 79.1% in the third quarter. Alyeska Investment Group L.P. now owns 644,988 shares of the information technology services provider’s stock worth $97,258,000 after buying an additional 284,840 shares during the last quarter. Finally, Millennium Management LLC raised its stake in shares of EPAM Systems by 84.1% in the fourth quarter. Millennium Management LLC now owns 618,278 shares of the information technology services provider’s stock valued at $126,673,000 after purchasing an additional 282,499 shares in the last quarter. Hedge funds and other institutional investors own 91.58% of the company’s stock.

EPAM Systems Company Profile

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM’s offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.