EPAM Systems (NYSE:EPAM) Shares Gap Down Following Analyst Downgrade

EPAM Systems, Inc. (NYSE:EPAM)’s share price gapped down prior to trading on Thursday after JPMorgan Chase & Co. lowered their price target on the stock from $142.00 to $120.00. The stock had previously closed at $109.87, but opened at $87.35. JPMorgan Chase & Co. currently has an overweight rating on the stock. EPAM Systems shares last traded at $94.3230, with a volume of 513,344 shares changing hands.

Several other research analysts have also issued reports on the stock. TD Cowen lowered their price target on shares of EPAM Systems from $131.00 to $120.00 and set a “buy” rating for the company in a report on Friday. Stifel Nicolaus set a $135.00 price objective on shares of EPAM Systems in a research note on Thursday. Citigroup dropped their target price on shares of EPAM Systems from $112.00 to $100.00 and set a “neutral” rating on the stock in a report on Monday, July 27th. Guggenheim cut their price target on shares of EPAM Systems from $225.00 to $200.00 and set a “buy” rating on the stock in a research report on Monday, May 4th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of EPAM Systems in a research report on Tuesday. Seven equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $125.13.

EPAM Systems News Summary

Here are the key news stories impacting EPAM Systems this week:

• Positive Sentiment: EPAM reported second-quarter non-GAAP EPS of $3.38, above the $3.14–$3.16 analyst consensus, while revenue of $1.415 billion was approximately in line with expectations and increased 4.5% year over year. Non-GAAP operating margin expanded to 16.4% from 15.0%, and EPS rose 22% from the prior year. EPAM Reports Results for Second Quarter 2026
• Positive Sentiment: Full-year adjusted EPS guidance of $13.08 to $13.24 is above the roughly $12.53 consensus, and third-quarter EPS guidance of $3.38 to $3.46 also exceeds estimates. EPAM additionally repurchased $85 million of stock during the quarter, bringing year-to-date repurchases to $409 million. EPAM Q2 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: JPMorgan lowered its price target to $120 from $142 but retained an “overweight” rating. Susquehanna cut its target to $146 from $167 while maintaining a “positive” rating, and Needham reduced its target to $120 from $135 while keeping a “buy” rating. The revised targets still imply substantial potential appreciation from recent levels.
• Negative Sentiment: EPAM reduced its full-year revenue-growth outlook to 3.2%–4.2%, including 2.0%–3.0% organic constant-currency growth, reflecting weaker demand for software services. Reuters reported that the forecast cut triggered a sharp premarket selloff and remains the main investor concern. EPAM Cuts Annual Revenue Forecast on Weak Software Services Demand
• Negative Sentiment: Truist lowered its price target to $110 from $112 and assigned a “hold” rating, while William Blair downgraded EPAM from “outperform” to “market perform.” These actions reinforce caution around the company’s slower top-line growth.

Institutional Investors Weigh In On EPAM Systems

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of EPAM Systems during the second quarter worth approximately $526,684,000. Deutsche Bank AG acquired a new stake in EPAM Systems in the 2nd quarter valued at $467,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in EPAM Systems in the 2nd quarter valued at $2,218,000. Global Retirement Partners LLC bought a new stake in EPAM Systems during the 2nd quarter valued at $43,000. Finally, Bank of New York Mellon Corp acquired a new position in EPAM Systems during the second quarter worth $24,729,000. Institutional investors own 91.58% of the company’s stock.

EPAM Systems Stock Performance

The stock has a market cap of $5.09 billion, a price-to-earnings ratio of 13.21, a P/E/G ratio of 0.88 and a beta of 1.39. The company’s fifty day simple moving average is $91.11 and its two-hundred day simple moving average is $123.83. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.75 and a quick ratio of 2.67.

EPAM Systems (NYSE:EPAM) last issued its quarterly earnings data on Thursday, August 6th. The information technology services provider reported $3.38 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.16 by $0.22. EPAM Systems had a net margin of 7.15% and a return on equity of 15.84%. The firm had revenue of $1.41 billion during the quarter, compared to analysts’ expectations of $1.41 billion. During the same period last year, the company earned $2.77 earnings per share. The business’s revenue was up 4.6% on a year-over-year basis. EPAM Systems has set its FY 2026 guidance at 13.080-13.240 EPS and its Q3 2026 guidance at 3.380-3.460 EPS. On average, analysts forecast that EPAM Systems, Inc. will post 10.4 earnings per share for the current year.

EPAM Systems Company Profile

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM’s offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.