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EPAM Systems, Inc. (EPAM), valued at $9.7 billion by market cap, offers digital platform engineering and software development services. the Pennsylvania-based company provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions.
Shares of this IT titan have considerably underperformed the broader market over the past year. EPAM has declined 13.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 15.2%. In 2025, EPAM stock is down 25.8%, compared to SPX’s 10.2% rise on a YTD basis.
Narrowing the focus, EPAM has also struggled to keep up with the Fidelity MSCI Information Technology Index ETF (FTEC). The exchange-traded fund has gained about 21.5% over the past year and a 12.8% rise in 2025.
EPAM Systems posted a strong Q2 2025 on Aug. 7, with revenue up 18% year-over-year to $1.35 billion and non-GAAP EPS rising 13% to $2.77, beating expectations. The company raised its full-year revenue and earnings guidance, citing momentum in AI-driven services, which helped drive a 4.3% stock surge as investors reacted positively to the results and improved outlook.
For fiscal 2025, ending in December, analysts expect EPAM’s EPS to decline 1.7% to $8.72 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 17 analysts covering EPAM stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration is bullish than a month ago, with 11 analysts suggesting a “Strong Buy.”
On Aug. 20, JPMorgan lowered its price target for EPAM Systems from $205 to $201 while maintaining an “Overweight” rating, noting that IT services are expected to see below-average revenue growth for a third consecutive year, though improvement is anticipated ahead.
The mean price target of $213.53 represents a 23% premium to EPAM’s current price levels. The Street-high price target of $246 suggests an ambitious upside potential of 41.7%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
