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EPAM · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is EPAM SYSTEMS, INC. (EPAM) stock moving?
EPAM reported Q3 2026 adjusted EPS of $3.51 against a $3.41 estimate and revenue of $1.426B against $1.419B, then raised full-year adjusted EPS guidance to $13.23-$13.31. Sales guidance was narrowed to $5.648B-$5.659B, roughly in line with consensus, and the Q4 sales range of $1.405B-$1.420B sits slightly below the $1.423B estimate. The stock gapped up on Nov 5, opening at $156.20 and closing at $165.70, about 21% above the prior close of $137.36, on volume of 3.68M shares against roughly 1.3M-1.9M in the preceding sessions. It has held near $156-$165 since, closing at $164.14 on Nov 10 after a $153.26 low. Capital return is a visible support: the buyback authorization was raised by $1.5B to $1.8B, and a $500M accelerated share repurchase with UBS began Nov 9, with an initial delivery of 2.55M shares. Analyst reaction was broadly positive, with price targets raised to $150-$200 (Needham $200, Susquehanna $190, Guggenheim $190, Wells Fargo $176, Wedbush $160, Truist $150 Hold, Morgan Stanley $140 Equal-Weight). The current price sits above the pre-earnings FactSet median target of $125 and above most of the updated targets except the Buy-rated firms. Risks include the shelf registration filed Nov 5 (terms undisclosed), which could add supply, and a Q4 sales outlook that is only slightly below consensus.
News behind the analysis
- EPAM Systems Enters $500 Million Accelerated Share Repurchase AgreementEPAM started a $500 million accelerated share repurchase with UBS under its existing $1.8 billion authorization. The initial share delivery was expected by Nov 10.
- EPAM Systems Enters $500M Accelerated Share Repurchase Agreement With UBS Under Its $1.8B Share Repurchase AuthorizationThe 8-K filing shows an initial delivery of 2,550,695 shares, worth about $400 million at the reference price. The repurchase is funded from the $1.8 billion authorization approved Sep 30.
- EPAM Systems, Inc. Reports Third Quarter 2026 Financial Results and Updates Full-Year OutlookQ3 2026 revenue came in at $1.426 billion and full-year 2026 earnings guidance was raised. The company also announced a $1.5 billion increase to its buyback authorization.
- EPAM Sys Q3 Adj. EPS $3.51 Beats $3.41 Estimate, Sales $1.426B Beat $1.419B EstimateAdjusted EPS of $3.51 beat the $3.41 consensus and sales of $1.426 billion beat the $1.419 billion estimate.
- EPAM Systems Raises FY2026 Adj EPS Guidance from $13.08-$13.24 to $13.23-$13.31 vs $13.15 Est; Narrows FY2026 Sales Guidance from $5.632B-$5.686B to $5.648B-$5.659B vs $5.659B EstFull-year adjusted EPS guidance was raised above the $13.15 consensus midpoint. Sales guidance was narrowed to $5.648B-$5.659B, roughly in line with the $5.659B estimate.
- EPAM Systems Sees Q4 Adj EPS $3.50-$3.58 vs $3.52 Est; Sees Sales $1.405B-$1.420B vs $1.423B EstQ4 adjusted EPS guidance of $3.50-$3.58 brackets the $3.52 estimate. The Q4 sales range sits slightly below the $1.423 billion estimate.
- EPAM Systems Increases Share Repurchase Authorization By $1.5B, Bringing The Total Remaining Authorization To $1.8B; Plans To Enter A $500M Accelerated Share Repurchase Next WeekThe buyback authorization was raised by $1.5 billion to a total of $1.8 billion remaining. A $500 million accelerated share repurchase was flagged for the following week.
- Needham Maintains Buy on EPAM Systems, Raises Price Target to $200Needham kept its Buy rating and lifted its price target to $200 after the results.
- Guggenheim Maintains Buy on EPAM Systems, Raises Price Target to $190Guggenheim kept its Buy rating and raised its price target to $190.
- Truist Securities Maintains Hold on EPAM Systems, Raises Price Target to $150Truist kept its Hold rating and raised its price target to $150, below the current share price.
About EPAM SYSTEMS, INC.
EPAM Systems, based in Newtown, Pennsylvania, is a global software engineering and digital/AI transformation services firm. It has about 64,000 employees, most of them engineers delivering work from Central and Eastern Europe, India, and Latin America. It is known for deep engineering skill rather than traditional outsourcing, and it sells to large global companies and startups.
How it makes money
EPAM earns fees from clients for custom software development, product and platform engineering, cloud migration, data and AI work, and consulting. Most of this is billed by time and materials, and the rest is fixed-price contracts. Clients are mainly in North America and Europe, across financial services, software and hi-tech, life sciences, retail, and travel. Revenue is roughly $5.6 billion a year, with 2026 growth guided at about 3.5–3.7%.
What usually moves EPAM
- Corporate IT and digital transformation budgets
- Demand for AI and cloud engineering work, and AI's effect on pricing
- Headcount utilization, wage inflation and operating margins
- Foreign exchange rates and Eastern European geopolitical risk
- Quarterly guidance and share buybacks