NYSEInformation TechnologyInformation Technology ServicesSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — EPS meets or exceeds $8.44 in FY26: FY26 EPS guidance $8.38 vs $8.44 target.
EPAM is growing revenue about 7.6% yearly and raised operating income 17.6% in the last year. The company guides for $1.41B revenue and $8.44 EPS in 2026. It is transforming into an AI-native firm, which should boost future growth. The stock trades cheap with a PE of 7.94 and free cash flow yield of 11%.
The recent sharp selloff shows investor concerns despite no thesis-breaking news. Growth could slow below the 6% consensus revenue growth. AI transformation progress is mixed and may not deliver as expected. Profit margins or operating income gains could stall.
The market prices EPAM about 35% below our fair value near $138, reflecting cautious views despite 6% revenue growth expected by analysts. Our fair value is 23% above the Street median, showing some optimism versus consensus.
Breaks if: Progress score falls below 70% in next 4 quarters
EPAM aims to become a global leader in AI-native enterprise transformation services.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on AI-native transformation and profitable growth. The current thesis state is stable, supported by recent earnings beats and ongoing management priorities.
The market currently prices EPAM as cheap compared to its peers, reflecting a low expectations gap. However, there is a fragility in earnings quality due to weak execution, which is not fully reflected in the stock's pricing.
Management has shown consistent execution in driving revenue and operating income growth, with a recent increase in company quality. Near-term risks are present, but the probability of missing guidance is low, although industry peers have faced challenges.
The long-term thesis hinges on sector performance, particularly the results and guidance from major players like IBM, ACN, and CTSH. Positive momentum from these companies could support EPAM, while negative trends could pose risks.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read. Joining the OpenAI Partner Network enhances growth potential. However, JPMorgan downgraded EPAM's stock rating, indicating challenges ahead. This downgrade threatens profitable growth and revenue expansion.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: EPS guidance falls below $8.44 for FY26
Breaks if: Operating income growth falls below 10% YoY in FY26
Breaks if: YoY revenue growth falls below 6% in FY26
EPAM aims to become a global leader in AI-native enterprise transformation services.
Overall, EPAM's fundamentals are on track, but the company faces high risks from sector dynamics. Not investment advice.
