A Business at a Glance
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EPAM Systems, Inc.
EPAM
$5.0B
Mkt Cap
$89.85
+4.31%
EPAM Systems, Inc. (EPAM) has a current P/E ratio of 13.2, compared to its historical median P/E of 43.5. The stock is currently considered Cheap based on its historical valuation range.
EPAM Systems, Inc. (EPAM) has a 5-year average return on invested capital (ROIC) of 30.8%. This indicates strong capital allocation and a potential competitive advantage.
EPAM Systems, Inc. (EPAM) has a market capitalization of $4.7B. It is classified as a mid-cap stock.
EPAM Systems, Inc. (EPAM) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 17.43%.
Based on historical P/E analysis, EPAM Systems, Inc. (EPAM) appears cheap. The current P/E of 13.2 is 70% below its historical median of 43.5. The estimated fair value CAGR (P/E method) is 9.0%.
EPAM Systems, Inc. (EPAM) operates in the Services-Computer Programming Services industry, within the Technology sector.
EPAM Systems, Inc. (EPAM) reported annual revenue of $5.5 billion in its most recent fiscal year, based on SEC EDGAR filings.
EPAM is a global provider of digital engineering, cloud, and AI-enabled transformation services, combining over 30 years of software engineering expertise with integrated strategy, experience, and technology consulting to serve enterprises and ambitious start-ups. The company operates through multidisciplinary teams delivering end-to-end solutions across engineering, cloud platforms, data analytics, artificial intelligence, customer experience, marketing, and cybersecurity, leveraging proprietary platforms like EPAM AI/RUN™ and DIALX Lab™ to accelerate clients' digital innovation. EPAM's business model is built on a global delivery framework with dedicated delivery centers that enable flexible resource deployment, supported by deep industry expertise across five main verticals—Financial Services, Consumer Goods & Retail & Travel, Software & Hi-Tech, Business Information & Media, and Life Sciences & Healthcare—plus emerging verticals in energy, telecommunications, and manufacturing. The company maintains long-term client relationships with 64.4% of 2025 revenues from clients with at least five years of tenure, and actively pursues organic growth and strategic acquisitions to expand geographic reach, service capabilities, and domain expertise. EPAM's competitive differentiation stems from its combination of engineering execution excellence, proprietary methodologies and tools, and increasingly its AI-native transformation capabilities, which are becoming a more substantial portion of the services mix as clients shift spending toward scaled AI deployment.
【AI-native scaling momentum】 Management expects to build on growing momentum in AI-native services, with revenues expected to scale in excess of $600 million in 2026, supported by foundational data engineering and platform modernization services that enable enterprise-scale AI adoption. The company continues to see robust demand for AI-native services and expects client budgets to remain relatively intact in 2026 compared to 2025, with a continuous shift in spending toward scaled AI deployment and larger, multi-year AI programs that are expected to scale over time. EPAM is accelerating deliberate go-to-market investments in North America, its largest market, while managing near-term macro uncertainty and client decision-making variability; the company expects to improve overall profitability and gross margins throughout 2026, with the trajectory of improved profitability underway as evidenced by year-over-year gross margin improvement in the first quarter. Management remains confident in its long-term strategy to transform into a global leader in AI transformation services and capitalize on faster-growing segments of the IT and AI services market, though visibility remains constrained by broader macro uncertainty and geopolitical volatility.
| Metric | Target | Period |
|---|---|---|
| Revenue growth | 4% to 6.5% | FY2026 |
| Organic constant currency revenue growth | 2.5% to 5% | FY2026 |
| GAAP income from operations | 10% to 11% | FY2026 |
| Non-GAAP income from operations | 15% to 16% | FY2026 |
| GAAP diluted EPS | $8.29 to $8.59 | FY2026 |
| Non-GAAP diluted EPS | $12.98 to $13.28 | FY2026 |
| AI-native revenues | in excess of $600 million | FY2026 |
Revenue growth (FY2026): “revenue growth will now be in the range of 4% to 6.5%”
Organic constant currency revenue growth (FY2026): “The organic constant currency growth is now expected to be in the range of 2.5%-5%”
GAAP income from operations (FY2026): “We expect GAAP income from operations to continue to be in the range of 10%-11%”
Non-GAAP income from operations (FY2026): “non-GAAP income from operations will continue to be in the range of 15%-16%”
GAAP diluted EPS (FY2026): “we expect that GAAP diluted EPS will now be in the range of $8.29-$8.59 for the full year”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 5.6B | 5.5B | 4.7B | 4.7B | 4.8B | 3.8B |
| Net Income | 387M | 378M | 455M | 417M | 419M | 482M |
| EPS | $7.09 | $6.72 | $7.84 | $7.06 | $7.09 | $8.15 |
| Free Cash Flow | 544M | 613M | 527M | 534M | 382M | 461M |
| ROIC | 15.3% | 15.9% | 21.7% | 27.5% | 37.3% | 51.4% |
| Gross Margin | - | 28.8% | 30.7% | 30.6% | 31.9% | 33.9% |
| Debt/Equity | 0.05 | 0.04 | 0.04 | 0.05 | 0.06 | 0.10 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 537M | 520M | 545M | 501M | 573M | 542M |
| Operating Margin | 9.7% | 9.5% | 11.5% | 10.7% | 11.9% | 14.4% |
| ROE | 11.3% | 10.3% | 12.8% | 12.9% | 15.3% | 21.5% |
| Shares Outstanding | 53M | 56M | 58M | 59M | 59M | 59M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 730M | 914M | 1.2B | 1.5B | 1.8B | 2.3B | 2.7B | 3.8B | 4.8B | 4.7B | 4.7B | 5.5B | 5.6B |
| Gross Margin | 37.5% | 38.0% | 36.5% | 36.5% | 35.6% | 35.1% | 34.9% | 33.9% | 31.9% | 30.6% | 30.7% | 28.8% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 164M | 223M | 266M | 328M | 374M | 457M | 485M | 649M | 873M | 815M | 816M | 929M | 949M |
| EBIT | 86M | 106M | 134M | 173M | 246M | 303M | 379M | 542M | 573M | 501M | 545M | 520M | 537M |
| Op. Margin | 11.8% | 11.6% | 11.5% | 11.9% | 13.3% | 13.2% | 14.3% | 14.4% | 11.9% | 10.7% | 11.5% | 9.5% | 9.7% |
| Net Income | 70M | 84M | 99M | 73M | 240M | 261M | 327M | 482M | 419M | 417M | 455M | 378M | 387M |
| Net Margin | 9.5% | 9.2% | 8.6% | 5.0% | 13.0% | 11.4% | 12.3% | 12.8% | 8.7% | 8.9% | 9.6% | 6.9% | 7.0% |
| Non-Recurring | 2.2M | 0 | 0 | 0 | 0 | 0 | 0 | 144K | 686K | 9.1M | 32M | 48M | 56M |
| Returns on Capital | |||||||||||||
| ROIC | 30.6% | 24.4% | 23.5% | 24.1% | 50.6% | 36.7% | 42.3% | 51.4% | 37.3% | 27.5% | 21.7% | 15.9% | 15.3% |
| ROE | 16.6% | 15.7% | 14.2% | 8.3% | 21.5% | 18.3% | 18.3% | 21.5% | 15.3% | 12.9% | 12.8% | 10.3% | 11.3% |
| ROA | 13.6% | 12.3% | 11.6% | 6.7% | 16.8% | 13.5% | 13.2% | 15.4% | 11.1% | 10.0% | 10.0% | 7.8% | 8.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 105M | 76M | 167M | 193M | 292M | 287M | 544M | 572M | 464M | 563M | 559M | 655M | 594M |
| Free Cash Flow | 93M | 63M | 138M | 163M | 255M | 188M | 476M | 461M | 382M | 534M | 527M | 613M | 544M |
| Owner Earnings | 63M | 13M | 95M | 112M | 196M | 170M | 341M | 294M | 272M | 217M | 171M | 233M | 171M |
| CapEx | 12M | 13M | 29M | 30M | 38M | 99M | 69M | 112M | 82M | 28M | 32M | 42M | 51M |
| Maint. CapEx | 17M | 17M | 23M | 29M | 37M | 45M | 128M | 167M | 92M | 198M | 221M | 245M | 245M |
| Growth CapEx | 0 | 0 | 5.9M | 1.2M | 934K | 54M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 17M | 17M | 23M | 29M | 37M | 45M | 128M | 167M | 92M | 198M | 221M | 245M | 245M |
| CapEx/OCF | 11.4% | 17.4% | 17.8% | 15.5% | 12.9% | 34.5% | 12.6% | 19.5% | 17.6% | 5.1% | 5.7% | 6.4% | 8.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 165M | 398M | 662M | 826M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.9% | 2.9% | 5.6% | 17.4% |
| Stock-Based Comp | 25M | 46M | 49M | 52M | 59M | 72M | 75M | 112M | 100M | 148M | 167M | 177M | 178M |
| Debt Repayment | 0 | 0 | 30M | 25M | 3.5M | 9K | 18K | 31M | 16M | 3.0M | 1.9M | 8.3M | 8.3M |
| Balance Sheet | |||||||||||||
| Net Debt | -221M | -164M | -337M | -558M | -746M | -673M | -1.1B | -1.2B | -1.5B | -1.9B | -1.1B | -1.2B | -873M |
| Cash & Equiv. | 221M | 199M | 362M | 583M | 771M | 937M | 1.3B | 1.4B | 1.7B | 2.0B | 1.3B | 1.3B | 1.0B |
| Long-Term Debt | 0 | 35M | 25M | 25M | 25M | 25M | 25M | 30M | 28M | 26M | 25M | 25M | 165M |
| Debt/Equity | 0.00 | 0.06 | 0.03 | 0.03 | 0.02 | 0.17 | 0.13 | 0.10 | 0.06 | 0.05 | 0.04 | 0.04 | 0.05 |
| Interest Coverage | 12311.9 | 854.6 | 236.2 | 315.6 | 316.3 | 364.0 | 892.5 | 1313.1 | 345.4 | 106.7 | 145.7 | 372.2 | 372.2 |
| Equity | 464M | 613M | 781M | 975M | 1.3B | 1.6B | 2.0B | 2.5B | 3.0B | 3.5B | 3.6B | 3.7B | 3.4B |
| Total Assets | 594M | 779M | 926M | 1.3B | 1.6B | 2.2B | 2.7B | 3.5B | 4.0B | 4.4B | 4.8B | 4.9B | 4.7B |
| Total Liabilities | 130M | 165M | 144M | 275M | 349M | 648M | 738M | 1.0B | 1.0B | 881M | 1.1B | 1.2B | 1.3B |
| Intangibles | 48M | 47M | 51M | 45M | 57M | 56M | 52M | 101M | 78M | 71M | 436M | 407M | 386M |
| Retained Earnings | 261M | 345M | 444M | 1.7M | 457K | 1.0B | 1.3B | 1.8B | 2.2B | 2.5B | 2.6B | 2.3B | 2.1B |
| Working Capital | 290M | 401M | 530M | 779M | 936M | 1.1B | 1.4B | 1.5B | 2.0B | 2.4B | 1.6B | 1.6B | 1.5B |
| Current Assets | 415M | 529M | 647M | 960M | 1.2B | 1.5B | 1.9B | 2.3B | 2.8B | 3.1B | 2.4B | 2.5B | 2.4B |
| Current Liabilities | 125M | 128M | 116M | 181M | 263M | 387M | 466M | 763M | 747M | 645M | 821M | 977M | 884M |
| Per Share Data | |||||||||||||
| EPS | 1.40 | 1.62 | 1.87 | 1.32 | 4.24 | 4.53 | 5.60 | 8.15 | 7.09 | 7.06 | 7.84 | 6.72 | 7.09 |
| Owner EPS | 1.26 | 0.25 | 1.78 | 2.03 | 3.47 | 2.95 | 5.84 | 4.98 | 4.60 | 3.68 | 2.95 | 4.15 | 3.25 |
| Book Value | 9.33 | 11.76 | 14.72 | 17.69 | 22.28 | 27.70 | 33.94 | 42.08 | 50.74 | 58.75 | 62.60 | 65.43 | 65.04 |
| Cash Flow/Share | 2.11 | 1.47 | 3.15 | 3.50 | 5.16 | 4.99 | 9.32 | 9.68 | 7.85 | 9.52 | 9.64 | 11.65 | 11.97 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 49.7M | 52.1M | 53.1M | 55.1M | 56.7M | 57.6M | 58.4M | 59.1M | 59.2M | 59.1M | 58.0M | 56.2M | 52.8M |
| Valuation | |||||||||||||
| P/E Ratio | 34.9 | 49.0 | 34.0 | 81.6 | 26.9 | 47.3 | 63.1 | 83.7 | 44.7 | 42.3 | 30.4 | 31.5 | 12.7 |
| P/FCF | 26.1 | 65.6 | 24.5 | 36.4 | 25.4 | 65.7 | 43.4 | 87.5 | 49.0 | 33.0 | 26.2 | 19.4 | 8.7 |
| EV/EBIT | 23.1 | 35.6 | 20.0 | 27.7 | 20.1 | 38.6 | 51.5 | 72.1 | 30.0 | 31.4 | 21.0 | 18.1 | 7.2 |
| Price/Book | 5.2 | 6.7 | 4.3 | 6.1 | 5.1 | 7.7 | 10.4 | 16.2 | 6.2 | 5.1 | 3.8 | 3.2 | 1.4 |
| Price/Sales | 2.8 | 3.9 | 3.1 | 3.1 | 3.8 | 4.4 | 5.8 | 8.1 | 4.4 | 3.4 | 2.8 | 1.9 | 0.9 |
| FCF Yield | 3.8% | 1.5% | 4.1% | 2.7% | 3.9% | 1.5% | 2.3% | 1.1% | 2.0% | 3.0% | 3.8% | 5.2% | 11.5% |
| Market Cap | 2.4B | 4.1B | 3.4B | 5.9B | 6.5B | 12.4B | 20.7B | 40.3B | 18.7B | 17.7B | 13.8B | 11.9B | 4.7B |
| Avg. Price | 40.56 | 68.05 | 68.72 | 82.82 | 122.97 | 176.36 | 266.17 | 514.24 | 360.51 | 269.14 | 232.17 | 182.17 | 89.85 |
| Year-End Price | 48.84 | 79.37 | 63.60 | 107.70 | 114.04 | 214.39 | 353.63 | 682.20 | 316.65 | 298.79 | 238.47 | 211.41 | 89.85 |
EPAM Systems, Inc. passes 6 of 9 quality checks, suggesting mixed fundamentals.
EPAM Systems, Inc. trades at 13.2x trailing earnings, compared to its 15-year median P/E of 43.5x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 7.9x vs a median of 34.7x. The company's 5-year average ROIC is 30.8% with a gross margin of 31.2%. Total shareholder yield (buybacks) is 17.4%. At current prices, the estimated annualized return to fair value is +12.9%.
EPAM Systems, Inc. (EPAM) has a net profit margin of 6.9%. This is a modest margin.
EPAM Systems, Inc. (EPAM) generated $613 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
EPAM Systems, Inc. (EPAM) has a debt-to-equity ratio of 0.04. This indicates a conservatively financed balance sheet.
EPAM Systems, Inc. (EPAM) reported earnings per share (EPS) of $6.72 in its most recent fiscal year.
EPAM Systems, Inc. (EPAM) has a return on equity (ROE) of 10.3%. This indicates moderate shareholder returns.
EPAM Systems, Inc. (EPAM) has a 5-year average gross margin of 31.2%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for EPAM Systems, Inc. (EPAM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
EPAM Systems, Inc. (EPAM) has a book value per share of $65.43, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects to build on growing momentum in AI-native services, with revenues expected to scale in excess of $600 million in 2026, supported by foundational data engineering and platform modernization services that enable enterprise-scale AI adoption. The company continues to see robust demand for AI-native services and expects client budgets to remain relatively intact in 2026 compared to 2025, with a continuous shift in spending toward scaled AI deployment and larger, multi-year AI programs that are expected to scale over time. EPAM is accelerating deliberate go-to-market investments in North America, its largest market, while managing near-term macro uncertainty and client decision-making variability; the company expects to improve overall profitability and gross margins throughout 2026, with the trajectory of improved profitability underway as evidenced by year-over-year gross margin improvement in the first quarter. Management remains confident in its long-term strategy to transform into a global leader in AI transformation services and capitalize on faster-growing segments of the IT and AI services market, though visibility remains constrained by broader macro uncertainty and geopolitical volatility.
Based on recent SEC filings and earnings calls, EPAM Systems, Inc. (EPAM) has provided the following forward guidance: Revenue growth: 4% to 6.5% (FY2026); Organic constant currency revenue growth: 2.5% to 5% (FY2026); GAAP income from operations: 10% to 11% (FY2026); Non-GAAP income from operations: 15% to 16% (FY2026); GAAP diluted EPS: $8.29 to $8.59 (FY2026), plus 2 additional metrics.
Non-GAAP diluted EPS (FY2026): “non-GAAP diluted EPS will now be in the range of $12.98-$13.28 for the full year”
AI-native revenues (FY2026): “expect to scale these revenues in excess of $600 million in 2026”