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EPAM Systems, Inc. (EPAM), headquartered in Newtown, Pennsylvania, offers digital platform engineering and software development services. Valued at $9.4 billion by market cap, the company provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions. The IT services giant is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Thursday, Aug. 7.
Ahead of the event, analysts expect EPAM to report a profit of $2.07 per share on a diluted basis, up 5.1% from $1.97 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect EPAM to report EPS of $8.48, down 4.4% from $8.87 in fiscal 2024. However, its EPS is expected to rise 10.9% year over year to $9.40 in fiscal 2026.
EPAM stock has considerably underperformed the S&P 500 Index’s ($SPX) 13.4% gains over the past 52 weeks, with shares down 20.5% during this period. Similarly, it considerably underperformed the Technology Select Sector SPDR Fund’s (XLK) 14.5% uptick over the same time frame.
On May 8, EPAM shares closed up more than 12% after the company reported 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.
Analysts’ consensus opinion on EPAM stock is reasonably bullish, with an overall “Moderate Buy” rating. Out of 17 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” five give a “Hold,” and one recommends a “Moderate Sell.” EPAM’s average analyst price target is $213.12, indicating a potential upside of 26.3% from the current levels.
