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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. The IT services giant is expected to announce its fiscal first-quarter earnings for 2025 before the market opens on Thursday, May 8.
Ahead of the event, analysts expect EPAM to report a profit of $1.62 per share on a diluted basis, down 12.9% from $1.86 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 $7.97, down 10.2% from $8.87 in fiscal 2024. However, its EPS is expected to rise 14.7% year over year to $9.14 in fiscal 2026.
EPAM stock has considerably underperformed the S&P 500’s ($SPX) 9.4% gains over the past 52 weeks, with shares down 32.9% during this period. Similarly, it underperformed the Technology Select Sector SPDR Fund’s (XLK) 5.5% uptick 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.
Analysts’ consensus opinion on EPAM stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 18 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” six give a “Hold,” and one recommends a “Moderate Sell.” EPAM’s average analyst price target is $231.41, indicating an ambitious potential upside of 45.4% from the current levels.
On the date of publication, Neha Panjwani 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.
