Key statistics

Is EPAM a good stock to buy in 2026?

EPAM stock shows a compelling valuation, trading at a P/E of 16.43x, which is a discount compared to the Information Technology Services sector average of 18.7x. The company’s DCF fair value is calculated at $142.09, suggesting a significant upside of 25.8% from the current price. With 70.3% of analysts rating EPAM a Buy and a consensus target of $197, EPAM appears to be a good stock for potential growth, but remember that this is not investment advice.

2026 EPAM price scenarios

Based on analyst consensus of $197 from 37 analysts. Not a prediction by Alert Invest.

About EPAM Systems, Inc. (EPAM)

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; infrastructure management services, such as software development, testing, and maintenance with private, public, and mobile infrastructures for application, database, network, server, storage, and systems operations management, as well as monitoring, incident notification, and resolution services; and maintenance and support services.

EPAM Systems, Inc. is led by CEO Balazs Fejes, guiding a global team of approximately 61,200 employees. The company’s distinctive strengths lie in its deep engineering expertise, particularly in complex software development, product design, and digital platform engineering. EPAM leverages its extensive talent pool across multiple geographies to deliver advanced technological solutions, making it a critical partner for clients navigating digital transformation, and reinforcing why ‘EPAM stock’ warrants attention from investors.

EPAM competitive moat and business analysis

EPAM Systems operates in a highly competitive Information Technology Services industry. While its net margin of 6.92% might appear modest, it is common for service-oriented businesses to have lower net margins compared to product companies. The current data indicates ROE and ROIC are N/A, which prevents a full assessment of capital efficiency. However, the company’s low debt-to-equity ratio of 0.04x and a strong free cash flow (FCF) yield of 10.29% suggest a financially robust enterprise capable of self-funding growth and navigating market fluctuations. This strong financial position could be considered a competitive advantage, helping to ensure the stability of ‘EPAM stock’.

Regarding revenue diversification, specific breakdowns by product segment or geographical region for fiscal year 2025 are not available in the provided data. However, as a global provider of digital platform engineering and software development services, EPAM typically serves a broad range of industries and clients across various international markets. This inherent diversification across sectors and geographies helps mitigate risks associated with over-reliance on a single market or client base, contributing to the resilience of the EPAM business model.

EPAM has demonstrated strong top-line growth, with revenue increasing by 15.4% year-over-year to $5.46 billion. This growth trajectory indicates a healthy demand for its services and an ability to capture market share in the evolving digital landscape. There is no specific transcript quote available to elaborate on the moat trend, but the consistent revenue expansion points to a business that is effectively leveraging its expertise to scale. Sustaining this growth will be key for the long-term ‘EPAM valuation’.

When comparing EPAM Systems with its peers, its strong revenue growth rate positions it favorably within the Technology sector. While specific peer-to-peer metric comparisons would require a deeper dive, its P/E ratio of 16.43x is currently below the sector average of 18.7x, suggesting a potentially attractive ‘EPAM valuation’ relative to its industry. For a detailed side-by-side analysis, investors can explore comparisons such as EPAM vs AMKR, EPAM vs APLD, and EPAM vs AUR to better understand its competitive standing.

EPAM Systems, Inc. analyst rating

Based on 37 analysts. 70.3% rate EPAM Buy or Strong Buy.

A 70.3% “Buy” rating from 37 analysts is generally considered a strong endorsement in the Technology sector, indicating significant confidence in EPAM’s future performance. This high level of conviction suggests that many experts believe EPAM stock has substantial upside potential.

Is EPAM undervalued or overvalued?

EPAM Systems’ current valuation metrics present an interesting picture for investors considering EPAM stock. The company’s P/E ratio stands at 16.43x, notably below the Information Technology Services sector average of 18.7x, suggesting that EPAM might be trading at a discount compared to its industry peers. Furthermore, the discounted cash flow (DCF) model estimates EPAM’s fair value at $142.09, which implies a considerable upside of 25.8% from its current price, reinforcing the idea that EPAM could be undervalued.

Beyond P/E, EPAM also exhibits a P/B ratio of 1.69x and a P/S ratio of 1.09x, both of which are often considered attractive for a growth-oriented technology company. These metrics, combined with a strong free cash flow (FCF) yield of 10.29%, indicate a solid financial foundation and efficient asset utilization. Investors assessing ‘is EPAM a good stock’ from a valuation perspective may find these figures compelling, especially given the positive analyst consensus and target price of $197.

EPAM financial health & key metrics

For value investors, EPAM Systems presents a mixed but largely attractive financial profile. The low P/E ratio of 16.43x compared to the sector average and a DCF fair value indicating significant undervaluation point to a potentially favorable entry point for EPAM stock. While profitability margins like net margin at 6.92% are on the lower side for the broader market, the company’s exceptionally low debt-to-equity ratio of 0.04x highlights excellent financial stability. Coupled with robust revenue growth of 15.4% and a strong FCF yield of 10.29%, these metrics suggest EPAM is a financially healthy company growing its top line, making the ‘EPAM valuation’ appealing for long-term oriented investors.

EPAM Systems, Inc. earnings history & next report

EPAM Systems, Inc. reported EPS of $3.26, beating estimates by 3.16%. Next earnings: 2026-05-07 with EPS estimate of $2.75.

Investors will be keenly watching EPAM Systems’ next earnings report scheduled for 2026-05-07. The previous quarter saw the company beat EPS estimates by 3.16% with reported EPS of $3.26. For the upcoming report, the estimated EPS is $2.75. Key metrics to monitor will include any updates on forward guidance for revenue and earnings, commentary on client demand, and the impact of macroeconomic conditions on its global operations. Any deviation from the estimated EPS or significant changes in outlook could influence EPAM stock performance.

EPAM daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

EPAM insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent EPAM analyst rating changes

EPAM Systems, Inc. stock news today

How does EPAM compare to its peers?

For investors evaluating EPAM Systems, it’s beneficial to compare its performance and potential with other players in the Technology sector, particularly within Information Technology Services. Understanding how EPAM’s business model, growth prospects, and ‘EPAM valuation’ stack up against its competitors can provide crucial insights for investment decisions. Below are a few peers for consideration.

FAQ — EPAM Systems, Inc. (EPAM) stock