EPAM Systems (NYSE:EPAM) Downgraded to "Market Perform" Rating by William Blair

Key Points

• William Blair downgraded EPAM Systems from “outperform” to “market perform.” Analyst sentiment is mixed, with the stock carrying an overall “hold” rating and an average price target of $132.64.
• EPAM shares fell 13.8% to $94.67, with the stock trading well below its 200-day moving average and its 52-week high of $222.53.
• Despite the downgrade and selloff, EPAM exceeded quarterly earnings expectations, reporting $3.38 in EPS on $1.41 billion in revenue, while issuing full-year adjusted EPS guidance above analyst consensus.

EPAM Systems (NYSE:EPAM - Get Free Report) was downgraded by equities research analysts at William Blair from an "outperform" rating to a "market perform" rating in a report released on Thursday.

EPAM has been the topic of a number of other research reports. Guggenheim cut their price target on shares of EPAM Systems from $225.00 to $200.00 and set a "buy" rating on the stock in a research report on Monday, May 4th. Jefferies Financial Group downgraded EPAM Systems from a "buy" rating to a "hold" rating and dropped their price objective for the company from $130.00 to $110.00 in a research note on Friday, May 29th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $85.00 target price on shares of EPAM Systems in a research note on Friday, July 10th. TD Cowen reduced their price objective on shares of EPAM Systems from $170.00 to $131.00 and set a "buy" rating for the company in a research report on Thursday, July 9th. Finally, Wedbush started coverage on shares of EPAM Systems in a research report on Monday, June 15th. They set a "neutral" rating and a $99.00 target price on the stock. Seven research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $132.64.

EPAM Systems Trading Down 13.8%

NYSE:EPAM traded down $15.20 during trading hours on Thursday, hitting $94.67. 2,088,884 shares of the company were exchanged, compared to its average volume of 1,589,694. The stock has a market capitalization of $4.95 billion, a price-to-earnings ratio of 13.74, a price-to-earnings-growth ratio of 1.06 and a beta of 1.39. EPAM Systems has a one year low of $73.06 and a one year high of $222.53. The company has a fifty day simple moving average of $91.39 and a 200 day simple moving average of $124.86. The company has a current ratio of 2.67, a quick ratio of 2.67 and a debt-to-equity ratio of 0.05.

EPAM Systems (NYSE:EPAM - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The information technology services provider reported $3.38 earnings per share for the quarter, beating the consensus estimate of $3.14 by $0.24. EPAM Systems had a return on equity of 14.71% and a net margin of 6.96%.The company had revenue of $1.41 billion during the quarter, compared to analysts' expectations of $1.41 billion. During the same quarter in the prior year, the firm posted $2.77 earnings per share. The business's quarterly revenue was up 4.6% on a year-over-year basis. Sell-side analysts expect that EPAM Systems will post 10.4 EPS for the current fiscal year.

Institutional Trading of EPAM Systems

Several hedge funds have recently bought and sold shares of the business. Sunbelt Securities Inc. lifted its stake in shares of EPAM Systems by 4,233.3% in the fourth quarter. Sunbelt Securities Inc. now owns 130 shares of the information technology services provider's stock valued at $27,000 after buying an additional 127 shares in the last quarter. Sound Income Strategies LLC boosted its stake in EPAM Systems by 279.5% during the 4th quarter. Sound Income Strategies LLC now owns 148 shares of the information technology services provider's stock valued at $31,000 after purchasing an additional 109 shares during the last quarter. CYBER HORNET ETFs LLC acquired a new position in EPAM Systems during the 2nd quarter valued at about $27,000. 1248 Management LLC bought a new stake in EPAM Systems during the 4th quarter worth approximately $32,000. Finally, Rothschild Investment LLC increased its holdings in EPAM Systems by 51.4% during the 4th quarter. Rothschild Investment LLC now owns 159 shares of the information technology services provider's stock worth $33,000 after purchasing an additional 54 shares in the last quarter. Institutional investors and hedge funds own 91.58% of the company's stock.

Key Stories Impacting EPAM Systems

Here are the key news stories impacting EPAM Systems this week:

• Positive Sentiment: EPAM reported second-quarter non-GAAP earnings of $3.38 per share, exceeding the $3.14 analyst consensus and rising from $2.77 a year earlier. Revenue reached $1.415 billion, up 4.5% year over year and essentially in line with expectations. EPAM Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Profitability improved, with GAAP operating margin increasing to 10.8% from 9.3% and non-GAAP operating margin rising to 16.4% from 15.0%. The company also repurchased $85 million of stock during the quarter and $409 million year to date. EPAM Reports Results for Second Quarter 2026
• Positive Sentiment: Third-quarter adjusted EPS guidance of $3.38 to $3.46 is above the $3.33 consensus. Full-year adjusted EPS guidance of $13.08 to $13.24 also exceeds the $12.53 consensus, supporting the earnings outlook. EPAM Reports Results for Second Quarter 2026

About EPAM Systems

EPAM Systems, Inc is a global provider of digital platform engineering and software development services. The company partners with clients across industries—such as financial services, healthcare, retail, and technology—to design, develop, and maintain complex software applications and digital experiences. EPAM's offerings include custom software development, application management, infrastructure management, quality assurance, and testing services, enabling organizations to accelerate digital transformation and enhance operational efficiency.

In addition to its core engineering capabilities, EPAM delivers a range of specialized services, including product design and consulting, data and analytics, cloud computing, DevOps, and cybersecurity.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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