EPAM Systems (EPAM) faces a mixed outlook as weak North American demand, slower organic growth, AI-related pressure, contract changes and uncertain deal timing could limit near-term upside, Wedbush said in a note Monday.

The investment firm said EPAM's 3.7% organic constant-currency growth in Q1 showed that its AI story has not yet translated into stronger underlying growth as North America remains a key concern because clients are delaying discretionary spending, while larger rivals have stronger US sales reach.

EPAM's target of $600 million in AI-native revenue for fiscal 2026 requires continued growth through the rest of the year and about 10 large vendor-consolidation deals could add upside, but the timing is uncertain and they are not included in fiscal 2026 guidance, according to the note.

Wedbush initiated coverage of EPAM with a neutral rating and a $99 price target, saying the company has strong software engineering experience but does not yet stand apart enough from rivals in AI and it would need to see stronger organic growth, better North American demand and clearer margin progress before taking a more positive view.

Price: 93.62, Change: -1.76, Percent Change: -1.85