EPAM Systems, Inc. (EPAM), headquartered in Newtown, Pennsylvania, offers digital platform engineering and software development services. Valued at $9.4 billion by market cap, the company provides software development, outsourcing services, e-business, enterprise relationship management, and content management solutions. The IT services giant is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Thursday, Aug. 7.
Ahead of the event, analysts expect EPAM to report a profit of $2.07 per share on a diluted basis, up 5.1% from $1.97 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect EPAM to report EPS of $8.48, down 4.4% from $8.87 in fiscal 2024. However, its EPS is expected to rise 10.9% year over year to $9.40 in fiscal 2026.
EPAM stock has considerably underperformed the S&P 500 Index’s ($SPX) 13.4% gains over the past 52 weeks, with shares down 20.5% during this period. Similarly, it considerably underperformed the Technology Select Sector SPDR Fund’s (XLK) 14.5% uptick over the same time frame.
On May 8, EPAM shares closed up more than 12% after the company reported its Q1 results. Its adjusted EPS of $2.41 topped Wall Street expectations of $2.27. The company’s revenue was $1.30 billion, surpassing Wall Street forecasts of $1.28 billion. EPAM expects full-year adjusted EPS in the range of $10.70 to $10.95.
Analysts’ consensus opinion on EPAM stock is reasonably bullish, with an overall “Moderate Buy” rating. Out of 17 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” five give a “Hold,” and one recommends a “Moderate Sell.” EPAM’s average analyst price target is $213.12, indicating a potential upside of 26.3% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
