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 | Rank |
|---|---|---|---|---|---|
Valuation | 94 | 12.0x | 20.8x | Top tier | |
Growth | 45 | 14.2% | 6.1% | Around median | |
Quality | 67 | 16.4% | 6.6% | Top tier | |
Safety | 96 | — | 0.7x | Top tier | |
Capital Return | 81 | — | 2.02% | Top tier | |
Momentum | 2 | -47.7% | 4.1% | Bottom tier | |
Sentiment | 65 | 13 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
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) is a global leader in providing software engineering, digital platform development, and advanced technology consulting services. The company generates its revenue by designing and developing custom software solutions for major enterprises, integrating complex systems, and delivering artificial intelligence engineering services across vital sectors including financial services, software and high-tech, retail, and healthcare. The company is characterized by an innovative operating model that integrates specialized human talent with advanced artificial intelligence systems to deliver highly efficient and cost-effective services to its clients worldwide.
During the first quarter of fiscal year 2026, the company achieved strong financial results, with revenues reaching $1.4 billion, representing a growth of 7.6% year-over-year and 3.7% growth on an organic constant currency basis. GAAP gross margin was approximately 27.7% compared to 26.9% in the same quarter of the previous year, while net income was $82.5 million, with diluted earnings per share of $1.52. In terms of geographical distribution, the Americas region led revenues with 57%, followed by the Europe, Middle East, and Africa (EMEA) region with 41%, which achieved strong growth of 15.9% year-over-year, while the Asia-Pacific (APAC) region contributed the remaining 2%.
The valuation of EPAM Systems, Inc. stock is currently in line with remaining below the analyst consensus average price target of $144.63, with the analyst outlook range ranging between a low of $99 and a high of $247. The stock enjoys a general consensus buy rating by analysts, despite some neutral views such as Wedbush's assessment, which initiated coverage with a neutral rating due to concerns over AI threats. The company's strong cash flows indicate that the stock is approaching a valuation bottom that could open up good prospects for future recovery.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
EPAM announced a multi-year strategic partnership with Anthropic to enhance the delivery of secure and reliable AI solutions to enterprises. This partnership includes building a dedicated practice of more than 10,000 cloud-certified architects, and more than 20,000 employees have already completed training through the Anthropic Academy. The company aims to reach 5,000 Claude certifications by the end of the third quarter and 10,000 certifications by the end of 2026. This initiative will contribute to accelerating applied AI revenue growth and expanding the scale of the company's offerings in the global market.
The company lowered its annual revenue growth outlook for 2026 to be in the range of 4% to 6.5% due to rising general economic uncertainty and high energy prices. Management noted a slowdown and delays in decision-making by some clients, particularly in the travel and consumer goods sectors, in addition to relative underperformance in the North American market during the first quarter. However, the company still relies on a strong pipeline of large deals expected to close and ramp up in the second half of the year. These large deals target vendor consolidation and comprehensive digital transformation.
Automated analysis for informational purposes only — not investment advice.
The Americas region led the company's revenues with 57%, achieving a growth of 2.5% year-over-year, while the Europe, Middle East, and Africa (EMEA) region contributed 41% with very strong growth of 15.9%. Sector-wise, the financial services sector achieved growth of 11.5%, driven by activity from asset management and insurance clients, followed by the software and high-tech sector with growth of 10.9%. Conversely, the media and business information sector declined slightly by 0.7% year-over-year during the same quarter. This sectoral diversity reflects the resilience of the company's client portfolio in the face of market volatility.
EPAM recorded negative cash flows from operating activities of $36 million and negative free cash flows of $54 million during the first quarter of 2026. This decline is primarily due to the payment of high variable compensation associated with the financial performance of 2025, in addition to the timing of some supplier payments. Despite this temporary negative flow, the company maintains a strong liquidity position with cash and cash equivalents exceeding $1 billion at the end of the quarter. Management expects to regain positive cash flow momentum in the coming quarters of the fiscal year.
EPAM expects GAAP diluted EPS for the full year 2026 to range between $8.29 and $8.59 per share. As for non-GAAP EPS, it is expected to range between $12.98 and $13.28 per share. These expectations are based on assumptions that include continued stable productivity in the company's delivery centers in Ukraine. Management also assumes a weighted average diluted share count of approximately 52.7 million shares for the full year.