/EPAM%20Systems%20Inc%20logo%20on%20building-by%20Robson90%20via%20Shutterstock.jpg)
EPAM Systems, Inc. (EPAM), headquartered in Newtown, Pennsylvania, offers digital platform engineering and software development services. Valued at $10 billion by market cap, the company provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions.
Shares of this IT services giant have underperformed the broader market over the past year. EPAM has declined 1.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.6%. In 2025, EPAM stock is down 24.5%, compared to SPX’s marginal rise on a YTD basis.
Narrowing the focus, EPAM’s underperformance is also apparent compared to Fidelity MSCI Information Technology Index ETF (FTEC). The exchange-traded fund has gained about 11.9% over the past year. Moreover, the ETF’s 1.8% losses on a YTD basis outshine the stock’s double-digit losses over the same time frame.
On May 8, EPAM shares closed up more than 12% after reporting its Q1 results. Its adjusted EPS of $2.41 topped Wall Street expectations of $2.27. The company’s revenue was $1.30 billion, surpassing Wall Street forecasts of $1.28 billion. EPAM expects full-year adjusted EPS in the range of $10.70 to $10.95.
For the current fiscal year, ending in December, analysts expect EPAM’s EPS to decline 4.3% to $8.49 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 18 analysts covering EPAM stock, the consensus is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and one “Moderate Sell.”
This configuration is less bullish than two months ago, with 11 analysts suggesting a “Strong Buy.”
On May 15, Jefferies Financial Group Inc. (JEF) analyst Surinder Thind reiterated a “Buy” rating on EPAM and set a price target of $225, implying a potential upside of 27.4% from current levels.
The mean price target of $216.71 represents a 22.7% premium to EPAM’s current price levels. The Street-high price target of $250 suggests a notable upside potential of 41.5%.
