NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-07-07
Reading EPAM? This analysis is rebuilt every market day. Get it tracked free. No credit card.
Track EPAM free→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.
Standing thesis, reviewed periodically — not a price target or advice.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated in 3 of last 3 quarters. Revenue grew from $1.301B in 2025-Q1 to $1.400B in 2026-Q1, reflecting a 7.6% increase. The company is making progress in its AI-native transformation, aligning with its stated goals.
“CEO: 'We are on a multi-year transformation journey, continuing to position ourselves to fully benefit and capitalize on AI growth opportunities.'”
“CEO: 'Transforming into an AI-native organization is a key focus for us.'”
“CEO: 'Our AI-native transformation is progressing as planned.'”
Breaks if: EPS guidance falls below $8.44 for FY26
Breaks if: Operating income growth falls below 10% YoY in FY26
EPAM focuses on executing a clear strategy to drive its next phase of profitable growth.
Stated in 3 of last 3 quarters. Operating income increased from $99.3M in 2025-Q1 to $116.8M in 2026-Q1, indicating a 17.6% rise. The company is delivering on its strategy to drive profitable growth.
“CEO: 'Executing a clear strategy to drive our next phase of profitable growth.'”
“CEO: 'We are focused on driving profitable growth through strategic initiatives.'”
“CEO: 'Our strategy is centered on driving profitable growth.'”
Breaks if: YoY revenue growth falls below 6% in FY26
EPAM aims to become a global leader in AI-native enterprise transformation services.
Stated in 3 of last 3 quarters. Revenue grew from $1.301B in 2025-Q1 to $1.400B in 2026-Q1, reflecting a 7.6% increase. The company is making progress in its AI-native transformation, aligning with its stated goals.
“CEO: 'We are on a multi-year transformation journey, continuing to position ourselves to fully benefit and capitalize on AI growth opportunities.'”
“CEO: 'Transforming into an AI-native organization is a key focus for us.'”
“CEO: 'Our AI-native transformation is progressing as planned.'”
