EPAM Systems (EPAM)
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
$117.04-2.37%
Close 2026-09-04 · 1-day change
NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-09-04
Broken: Primary pillar broken — EPS meets or exceeds $8.44 in FY26: FY26 EPS guidance $8.38 vs $8.44 target.
EPAM is growing revenue about 7.6% yearly and raised operating income 17.6% in the last year. The company guides for $1.41B revenue and $8.44 EPS in 2026. It is transforming into an AI-native firm, which should boost future growth. The stock trades cheap with a PE of 7.94 and free cash flow yield of 11%.
The recent sharp selloff shows investor concerns despite no thesis-breaking news. Growth could slow below the 6% consensus revenue growth. AI transformation progress is mixed and may not deliver as expected. Profit margins or operating income gains could stall.
The market prices EPAM about 35% below our fair value near $138, reflecting cautious views despite 6% revenue growth expected by analysts. Our fair value is 23% above the Street median, showing some optimism versus consensus.
Breaks if: Progress score falls below 70% in next 4 quarters
EPAM aims to become a global leader in AI-native enterprise transformation services.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on technology and innovation. The current thesis state is intact, supported by recent earnings beats and management's commitment to driving AI-native transformation.
The market currently prices EPAM as cheap compared to its peers, with no significant expectations gap. This suggests that while the stock may be undervalued, there is also a recognition of its fragile earnings quality.
Fundamentals are likely to show continued growth, as management has consistently delivered on revenue and operating income targets. However, there is a near-term risk of missing guidance, which could impact sentiment.
The thesis hinges on several factors, including management's ability to maintain guidance, potential interest rate cuts by the Fed, and the performance of sector leaders like IBM and Accenture. Any negative guidance could lead to a significant downturn.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read on EPAM. However, a shift to cybersecurity may divert focus from AI-native growth. Additionally, lower revenue outlooks could hinder profitable growth objectives.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: EPS guidance falls below $8.44 for FY26
Breaks if: Operating income growth falls below 10% YoY in FY26
Breaks if: YoY revenue growth falls below 6% in FY26
EPAM aims to become a global leader in AI-native enterprise transformation services.
Over the next 1 to 3 years, EPAM's performance will depend on its execution and external market conditions. Not investment advice.