Overview
Digital transformation firm's Q4 revenue rose 12.8% yr/yr, beating analyst expectations
Adjusted EPS for Q4 rose 14.8%, beating analyst expectations
Company repurchased 1.16 mln shares for $223.5 mln in Q4
Outlook
Epam expects full-year 2026 revenue growth of 4.5% to 7.5%
Company anticipates 2026 GAAP diluted EPS between $7.95 and $8.25
Epam forecasts Q1 2026 revenue between $1.385 bln and $1.400 bln
Result Drivers
AI-NATIVE REVENUES - EPAM's Q4 performance was driven by scaling and accelerating AI-native revenues, according to CEO Balazs Fejes
STRATEGIC INVESTMENTS - Continued investment in AI innovation and talent development contributed to EPAM's transformation and strategic positioning, per CEO Balazs Fejes
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $1.41 bln | $1.39 bln (15 Analysts) |
Q4 Adjusted EPS | Beat | $3.26 | $3.16 (16 Analysts) |
Q4 EPS | $1.98 | ||
Q4 Adjusted Income from Operations | Beat | $230 mln | $222.56 mln (15 Analysts) |
Q4 Income from Operations | $149.30 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Epam Systems Inc is $228.00, about 36% above its February 18 closing price of $167.69
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago
Press Release: ID:nPn6vzxR3a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)