EPAM Systems, Inc.
- Open
- 80.80
- Day high
- 85.74
- Day low
- 80.55
- Prev close
- 79.35
- Volume
- 481K
- Mkt cap
- $4.5B
- P/E (TTM)
- 12.2
- EPS (TTM)
- $7.00
- P/B
- 1.3
- P/S
- 0.8
- Yield
- —
- Per share
- —
- ▲Insiders net buying $45K over the last 3 months (6 open-market buys, 0 sales)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions mixed (13F)
EPAM Systems, Inc. (EPAM) is a Technology company listed on NYSE. The stock is down 56% over the past year. Over the trailing 3 months, insiders filed 6 open-market buys and 0 sales (SEC Form 4).
EPAM Systems, Inc. (EPAM) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 11 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
EPAM earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $2.75 | $2.86 | +4.0% | $1.4B | +0.4% |
| Feb 19, 2026 | $3.16 | $3.26 | +3.2% | $1.4B | +0.9% |
| Nov 6, 2025 | $3.03 | $3.08 | +1.7% | $1.4B | +1.4% |
| Aug 7, 2025 | $2.61 | $2.77 | +6.1% | $1.4B | -1.6% |
| May 8, 2025 | $2.27 | $2.41 | +6.2% | $1.3B | +1.5% |
| Feb 20, 2025 | $2.75 | $2.84 | +3.3% | $1.2B | -2.0% |
| Nov 7, 2024 | $2.70 | $3.12 | +15.6% | $1.2B | +1.4% |
| May 9, 2024 | $2.32 | $2.46 | +6.0% | $1.2B | +0.4% |
| Feb 15, 2024 | $2.51 | $2.75 | +9.6% | $1.2B | +1.7% |
| Nov 2, 2023 | $2.56 | $2.73 | +6.6% | $1.2B | +0.6% |
| Aug 3, 2023 | $2.34 | $2.64 | +12.8% | $1.2B | +0.8% |
| May 5, 2023 | $2.34 | $2.47 | +5.6% | $1.2B | +4.3% |
EPAM insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 22, 2026 | Segert Robert E.director | Grant | 2,132 | — |
| May 22, 2026 | Shan Helen L.director | Grant | 2,132 | — |
| May 22, 2026 | McMahon Chandradirector | Grant | 2,132 | — |
| May 22, 2026 | Mayoras Richard Michaeldirector | Grant | 2,132 | — |
| May 22, 2026 | Robb Karldirector | Grant | 2,132 | — |
| May 22, 2026 | Vargo Ronald Pdirector | Grant | 2,132 | — |
| May 22, 2026 | Aguirre DeAnnedirector | Grant | 2,132 | — |
| May 22, 2026 | Roman Eugenedirector | Tax | 673 | $103.19 |
| May 22, 2026 | Roman Eugenedirector | Grant | 2,132 | — |
| May 22, 2026 | Smart Jilldirector | Grant | 2,132 | — |
| May 4, 2026 | Peterson Jason D.officer: Chief Financial Officer | Buy | 78 | $96.71 |
| May 4, 2026 | Rockwell Edwardofficer: SVP/Chief Legal Officer | Buy | 78 | $96.71 |
| May 4, 2026 | Fejes Balazsdirector, officer: CEO, President, Director | Buy | 78 | $96.71 |
| May 4, 2026 | Solomon Lawrence Fofficer: SVP/Chief People Officer | Buy | 78 | $96.71 |
| May 4, 2026 | Dvorkin Viktarofficer: Chief Deliv Off, EVP, Americas | Buy | 78 | $96.71 |
Source: EPAM SEC Form 4 filings, latest May 22, 2026. For informational purposes only — not investment advice.
See the full EPAM insider & 13F page →EPAM Systems, Inc. company profile
Overview
EPAM Systems, Inc. (NYSE:EPAM) is a global digital platform engineering and software development services company founded in 1993 and headquartered in Newtown, Pennsylvania. The company went public in February 2012 and has grown to become one of the leading providers of digital transformation services worldwide. EPAM serves clients across multiple industries including financial services, healthcare, travel, retail, and technology sectors, offering comprehensive software development, testing, maintenance, and consulting services from delivery centers spanning across North America, Europe, Asia, and Latin America.
Business
EPAM operates in the information technology services industry, specifically focusing on digital platform engineering and custom software development. The company provides end-to-end technology services that help businesses transform their operations through digital solutions. The company's core offerings include engineering services such as requirements analysis, platform selection, customization, cross-platform migration, implementation, and integration. These services help clients build and modernize their software applications and digital platforms. EPAM also provides infrastructure management services, which involve software development, testing, and maintenance across private, public, and mobile infrastructures. This includes managing applications, databases, networks, servers, storage systems, and overall operations management. Additionally, EPAM offers maintenance and support services to ensure clients' systems continue operating effectively after implementation. The company has developed specialized optimization solutions that include software application testing, test management, automation, and consulting services to enhance existing software testing and quality assurance practices. A growing segment of EPAM's business focuses on artificial intelligence and generative AI services. The company has developed proprietary AI platforms like EPAM DIAL (an AI orchestration platform) and EPAM AI/Run, which help clients implement AI-powered solutions and automate business processes. EPAM's revenue is distributed across six main industry verticals: Financial Services (the largest segment generating approximately 30% of revenue), Life Sciences and Healthcare, Software and Hi-Tech, Consumer Goods/Retail and Travel, Business Information and Media, and Emerging Verticals. The company has been particularly focused on expanding its AI-native revenue streams, which showed strong double-digit growth in recent quarters.
Revenue model
EPAM generates revenue primarily through professional services contracts where clients pay for software development, engineering, and consulting services. The company operates on both time-and-materials and fixed-price contract models, with an increasing shift toward fixed-price arrangements as clients seek more predictable pricing structures. The company's paying customers are primarily large enterprises and mid-market companies across various industries who need custom software development, digital transformation services, or ongoing technology support. EPAM typically engages in long-term relationships with clients, often starting with smaller projects and expanding into larger, multi-year engagements worth tens to hundreds of millions of dollars. EPAM's business model benefits from several factors that can increase margins. The company's global delivery model allows it to leverage cost arbitrage by performing work in lower-cost locations like India, Eastern Europe, and Latin America while serving clients in higher-cost markets like North America and Western Europe. The company's increasing focus on AI and automation tools helps improve productivity and enables premium pricing for advanced capabilities. Additionally, EPAM's shift toward more fixed-price contracts can improve margin predictability and capture efficiency gains. However, several factors can pressure margins. Wage inflation in key delivery locations, particularly in India and Eastern Europe, increases costs without corresponding price increases from clients. The company faces competitive pricing pressure as clients often prioritize cost reduction over premium services during economic uncertainty. EPAM also experiences margin pressure from talent retention costs and investments in new capabilities like AI platforms, which require significant upfront spending before generating returns. Macroeconomic conditions affecting client discretionary spending can also reduce demand for higher-margin consulting and transformation projects.
Competitive moat
EPAM's competitive moat is moderate but not exceptionally strong. The company's primary advantages stem from its established client relationships, technical expertise, and global delivery capabilities, but these are not insurmountable barriers to competition. EPAM's strongest moat element is its deep client relationships and domain expertise. The company has built long-term partnerships with many Fortune 500 companies, often becoming embedded in clients' critical technology operations. This creates switching costs as clients become dependent on EPAM's institutional knowledge of their systems and business processes. The company's expertise in complex, mission-critical applications, particularly in regulated industries like financial services and healthcare, provides some differentiation. The company's global delivery model and talent pool offers operational advantages. EPAM has successfully built delivery capabilities across multiple geographies, allowing for cost optimization and risk diversification. The company's focus on high-skilled engineering talent and its ability to attract and retain quality developers provides some competitive advantage. However, EPAM faces significant competitive threats. The IT services industry has relatively low barriers to entry, with numerous competitors ranging from large Indian IT services companies (like TCS, Infosys, and Wipro) to boutique consulting firms and emerging offshore providers. Many competitors offer similar services at competitive or lower prices. The rise of AI and automation tools could potentially commoditize some of EPAM's traditional services, though the company is actively investing in AI capabilities to maintain relevance. Additionally, client concentration risk exists as EPAM depends heavily on a relatively small number of large clients for significant revenue. Economic downturns can quickly impact demand for discretionary IT services, as evidenced by the company's recent revenue volatility during macroeconomic uncertainty.
Risks & safety
EPAM demonstrates a strong margin of safety with solid financial fundamentals and minimal solvency risk, though valuation metrics suggest limited upside at current levels. **Cash and Debt Position:** • Strong cash position of $1.17 billion with minimal debt (debt-to-equity ratio of 0.043) • Excellent liquidity with current ratio of 3.06 and quick ratio of 3.06 • Positive free cash flow of $15 million in Q1 2025, though significantly down from $527 million in FY 2024 • No immediate solvency concerns given strong balance sheet **Valuation Metrics:** • Price-to-earnings ratio of 32.6x appears elevated for current growth rates • EV/EBITDA of 15.2x suggests premium valuation • Price-to-book ratio of 2.6x is reasonable for a services company • Graham number of $43.22 suggests potential overvaluation at current price of $179.71 **Other Considerations:** • Revenue growth has decelerated significantly with only 1.4% organic constant currency growth • Operating margins under pressure from wage inflation and competitive pricing • Strong market position but facing headwinds from macroeconomic uncertainty
Recent development
Over the past few years, EPAM has undergone significant strategic transformation driven by both external challenges and market opportunities. The most dramatic change occurred following the Russia-Ukraine conflict, which forced the company to fundamentally restructure its global delivery model. EPAM reduced its delivery capacity in impacted regions from 60% to 30% and successfully relocated over 13,000 employees to safer locations, while expanding operations in India, Latin America, and Central Asia. The company has made aggressive investments in artificial intelligence capabilities, launching proprietary platforms like EPAM DIAL (an AI orchestration platform) and EPAM AI/Run. EPAM has trained nearly 100% of its workforce in generative AI, with over 10% becoming advanced practitioners. The company now engages with 75% of its top clients on GenAI initiatives and has been involved in over 400 AI-related projects, generating approximately $50 million in AI-native revenues in Q4 2024. EPAM has also pursued strategic acquisitions to expand its capabilities and geographic reach. The company acquired NEORIS to strengthen its Latin American presence, adding nearly 6,000 professionals and doubling its delivery footprint in the region. It also acquired First Derivative to enhance its financial services capabilities. A significant leadership transition is underway, with founder and longtime CEO Arkadiy Dobkin stepping down to become Executive Chairman, while Balazs Fejes will assume the CEO role in September 2025. The company has shifted its delivery strategy to make India its largest single delivery location, representing over 20% of headcount, while maintaining quality engineering capabilities across all geographies. EPAM has also adapted its commercial model, increasing the proportion of fixed-price contracts in response to client demand for predictable pricing, while leveraging AI productivity improvements to maintain margins on these engagements.
EPAM company profile · for informational purposes only — not investment advice.
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