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EPAM Systems, Inc. (EPAM), headquartered in Newtown, Pennsylvania, offers digital platform engineering and software development services. Valued at $11.8 billion by market cap, the company provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions.
Shares of this IT services giant have considerably underperformed the broader market over the past year. EPAM has declined 30.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 17%. In 2025, EPAM stock is down 10%, compared to SPX’s 1.3% 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 18.1% over the past year. Moreover, the ETF’s 2.5% losses on a YTD basis outshine the stock’s double-digit losses over the same time frame.
On Feb. 20, EPAM shares closed down more than 12% after reporting its Q4 results. Its adjusted EPS of $2.84 surpassed Wall Street expectations of $2.75. The company’s revenue was $1.3 billion, topping Wall Street forecasts of $1.2 billion. EPAM expects full-year adjusted EPS to be between $10.45 and $10.75.
For fiscal 2025, ending in December, analysts expect EPAM’s EPS to decline 8.6% to $8.11 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 19 analysts covering EPAM stock, the consensus is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and one “Moderate Sell.”
This configuration is more bullish than three months ago, with nine analysts suggesting a “Strong Buy.”
On Feb. 23, Stifel Nicolaus analyst David Grossman maintained a “Buy” rating on EPAM with a price target of $275, implying a potential upside of 30.6% from current levels.
The mean price target of $260.94 represents a 24% premium to EPAM’s current price levels. The Street-high price target of $300 suggests an ambitious upside potential of 42.5%.
