The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 73 | 13.1x | 20.1x | Above average | |
Growth | 55 | 14.2% | 5.6% | Near average | |
Quality | 53 | 16.4% | 7.6% | Near average | |
Safety | 88 | -1.9x | 0.4x | Above average | |
Capital Return | 83 | — | 2.19% | Above average | |
Momentum | — | — | — | No data | |
Sentiment | — | — | — | No data |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
Analysts' outlook for EPAM stock has seen a notable decline over the past 30 days, with the average price target dropping by 4.34% to reach $151.14. This negative adjustment reflects a state of uncertainty, especially as major institutions such as Jefferies and Goldman Sachs downgraded the stock from 'Buy' to 'Neutral/Hold', indicating a decrease in conviction regarding the stock's immediate growth prospects.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
EPAM Systems, Inc. (EPAM · NYSE) is one of the leading global providers of software engineering and digital platform development services, in addition to offering comprehensive digital solutions and consulting. The company's business model relies on providing specialized engineering and consulting services to clients to help them bridge the gap in adopting modern technology, generating its revenue primarily through professional services contracts based on Time and Materials (T&M) or fixed-price contracts across diverse geographic and industrial segments.
During the first quarter of fiscal year 2026, the company achieved strong financial results, represented by recording revenues of $1.4 billion, which represents a growth of 7.6% on a year-over-year basis and organic growth of 3.7% in constant currency. The company also recorded a net income of $82.5 million, with earnings per share of $1.52 on a GAAP basis, while unadjusted (GAAP) gross profit margins reached approximately 27.7% compared to 26.9% in the first quarter of the previous year, reflecting a tangible improvement in the profitability of operational processes.
Automated analysis for informational purposes only — not investment advice.
EPAM stock is currently trading at $102.77, which is significantly lower than the average price target by analysts of $151.14, with the range of analyst expectations ranging between a minimum of $110 and a maximum of $247. The current analyst consensus indicates a "Buy" recommendation, which places the current price of the stock in an attractive area for investors as it trades below the lowest target price in the analyst consensus.
The partnership is a multi-year strategic alliance to apply artificial intelligence and accelerate the delivery of secure and reliable solutions to enterprise clients. EPAM is building a dedicated practice of more than 10,000 cloud-certified engineers, and more than 1,400 engineers have already successfully obtained Claude certified status, aiming to reach 5,000 certifications by the end of the third quarter and 10,000 certifications by the end of this year.
Cash flow from operating activities was negative at $36 million, while free cash flow was negative at $54 million during the first quarter. The main reason behind this decline is the payment of high variable compensation payments related to the financial performance of the year 2025, in addition to the timing of payment of some vendor dues during the quarter.
The company implemented decisive measures to reduce costs and improve the efficiency of operational processes, which included reducing the number of employees in Mexico in addition to targeted reductions in some other geographical regions. These steps, along with improving employee utilization rates to reach 77%, helped support gross profit margins and improve the bench cost structure.
The company now expects annual revenue growth of between 4% and 6.5%, with a positive exchange rate impact of 1.5%. It also expects GAAP diluted earnings per share to range between $8.29 and $8.59, and non-GAAP earnings per share to range between $12.98 and $13.28, while maintaining an unadjusted operating margin between 15% and 16%.