Live News • Jun 06
EPAM Systems Expands Generative AI Capabilities With Anthropic Partnership as Shares Fall on Guidance EPAM Systems has entered a multi-year partnership with Anthropic to deliver secure, enterprise-grade generative AI solutions to Global 2000 clients, using Claude models, Claude Code and the Agent SDK.
As part of the partnership, EPAM plans to build a dedicated practice of 10,000 Claude-certified architects, supported by ongoing training to help deliver large-scale AI transformation projects.
The company reported Q1 revenue growth of 7.6% year-on-year, in line with analyst expectations, and EPS that surpassed its full-year guidance. Its revenue forecast for the next quarter came in slightly below market expectations, contributing to an 8.9% share price decline after earnings.
The combination of a large-scale AI talent build-out and an enterprise-focused partnership with Anthropic places EPAM at the center of many clients’ efforts to move AI initiatives from pilot projects to production workflows.
At the same time, the market reaction to slightly softer near-term revenue guidance indicates that investors are still closely tracking how AI-focused initiatives relate to booked revenue and earnings. Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$90.39, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 10x in the IT industry in the US. Total loss to shareholders of 61% over the past three years. Announcement • May 09
EPAM Systems, Inc. Provides Earnings Guidance for Second Quarter and Full Year 2026 EPAM Systems, Inc. provided earnings guidance for second quarter and full year 2026. The Company expects revenues will be in the range of $1.400 billion to $1.415 billion for the second quarter, reflecting year-over-year growth of 4.0% at the midpoint of the range; GAAP income from operations to be in the range of 9% to 10% of revenues; and expects GAAP diluted EPS will be in the range of $1.79 to $1.87 for the quarter.
The Company now expects the year-over-year revenue growth rate to be in the range of 4.0% to 6.5% for 2026 and continues to GAAP income from operations to be in the range of 10% to 11% of revenues; the company now expects GAAP diluted EPS to be in the range of $8.29 to $8.59. Price Target Changed • May 09
Price target decreased by 20% to US$150 Down from US$187, the current price target is an average from 17 analysts. New target price is 44% above last closing price of US$104. Stock is down 42% over the past year. The company is forecast to post earnings per share of US$8.25 for next year compared to US$6.76 last year. Reported Earnings • May 07
First quarter 2026 earnings: EPS exceeds analyst expectations First quarter 2026 results: EPS: US$1.53 (up from US$1.29 in 1Q 2025). Revenue: US$1.40b (up 7.6% from 1Q 2025). Net income: US$82.5m (up 12% from 1Q 2025). Profit margin: 5.9% (up from 5.6% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 7.2%. Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 13% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Announcement • May 07
Epam Systems, Inc Showcases Production-Ready Ai-Powered Servicenow Development EPAM Systems, Inc. announced its production-ready AI capabilities for ServiceNow development at Knowledge 2026, taking place on May 5–7, 2026, in Las Vegas, NV. EPAM is already applying these capabilities in production to accelerate ServiceNow instance configuration, code management and feature delivery. EPAM has already applied these capabilities in its own production environment — accelerating instance configuration, resolving defects and delivering new features at speed. Built on Anthropic's Claude Code, EPAM's solution combines platform engineering expertise with practical AI application, positioning the company to help organizations reduce delivery friction, lower operating costs and bring new capabilities to market faster. EPAM will share demonstrations of AI-powered ServiceNow solutions, including: Implementation Analysis: Generating high-quality documentation for any existing feature, enabling teams to work effectively with client instances from day one and eliminating the need for lengthy knowledge transfers. Issue Remediation: Taking issues from bug report to live fix, reproducing issues in the Service Portal, identifying root causes in the codebase, and developing and deploying the fix. New Feature Development: Interpreting complex business requirements to build fully functional catalog items, including form design, validation rules and corresponding flows, all from a natural-language prompt. Event Management Implementation: Creating a complete Event Management implementation directly from a business requirements document and user stories. ServiceNow Upgrade Support: Accelerating upgrades by analyzing skipped records and surfacing downstream risks that humans might miss; all delivered in minutes with a comprehensive report covering deep-dive analysis details and clear recommendations. SDLC Tool Integration: Managing a complete SDLC cycle through a single prompt, from fetching Jira ticket details and understanding the issue to fixing it and closing the ticket with a detailed root cause and fix description. Media and conference attendees are invited to visit EPAM at ServiceNow Knowledge 2026, booth #5758, to see these AI-powered ServiceNow capabilities in action and learn how EPAM is helping organizations move from experimentation to production. Announcement • Apr 08
EPAM Systems, Inc. to Report Q1, 2026 Results on May 07, 2026 EPAM Systems, Inc. announced that they will report Q1, 2026 results Pre-Market on May 07, 2026 Announcement • Mar 30
EPAM Systems, Inc., Annual General Meeting, May 21, 2026 EPAM Systems, Inc., Annual General Meeting, May 21, 2026. Reported Earnings • Feb 20
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$6.76 (down from US$7.93 in FY 2024). Revenue: US$5.46b (up 15% from FY 2024). Net income: US$377.7m (down 17% from FY 2024). Profit margin: 6.9% (down from 9.6% in FY 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.6%. Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 12% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has fallen by 23% per year, which means it is performing significantly worse than earnings. Announcement • Feb 19
EPAM Systems, Inc. Provides Earnings Guidance for Fourth Quarter and Full Year 2026 EPAM Systems, Inc. provided earnings guidance for Fourth Quarter and Full Year 2026. For the quarter, The Company expects revenues will be in the range of $1.385 billion to $1.400 billion for the first quarter reflecting a year-over-year increase of 7.0% at the midpoint of the range. The Company expects year-over-year revenue growth on an organic constant currency basis to be approximately 2.9% at the midpoint of the range; For the first quarter, EPAM expects GAAP income from operations to be in the range of 7.0% to 8.0% of revenues
For the year, The Company expects the year-over-year revenue growth rate to be in the range of 4.5% to 7.5% for 2026. The Company expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 3% to 6%; For the full year, EPAM expects GAAP income from operations to be in the range of 10% to 11% of revenues . Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to US$162, the stock trades at a forward P/E ratio of 20x. Average forward P/E is 12x in the IT industry in the US. Total loss to shareholders of 50% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$262 per share. Announcement • Feb 17
EPAM Systems, Inc. Appoints Ben Hall as Head of Empathy Lab for North America EPAM Systems, Inc. announced that to drive its North American expansion, EPAM has appointed Ben Hall as Head of Empathy Lab for North America, where he will lead growth across the U.S. and Canada. Hall brings more than 20 years of experience in leading enterprise growth at several global creative and technology organizations, including Tata Consulting Services and R/GA. Buy Or Sell Opportunity • Feb 03
Now 28% undervalued Over the last 90 days, the stock has risen 14% to US$183. The fair value is estimated to be US$255, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 3.1%. For the next 3 years, revenue is forecast to grow by 7.0% per annum. Earnings are also forecast to grow by 14% per annum over the same time period. Valuation Update With 7 Day Price Move • Feb 03
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to US$183, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 16x in the IT industry in the US. Total loss to shareholders of 51% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$255 per share. Announcement • Jan 20
EPAM Systems, Inc. to Report Q4, 2025 Results on Feb 19, 2026 EPAM Systems, Inc. announced that they will report Q4, 2025 results Pre-Market on Feb 19, 2026 Reported Earnings • Nov 06
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: EPS: US$1.92 (down from US$2.40 in 3Q 2024). Revenue: US$1.39b (up 19% from 3Q 2024). Net income: US$106.8m (down 22% from 3Q 2024). Profit margin: 7.7% (down from 12% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) missed analyst estimates by 2.7%. Revenue is forecast to grow 6.8% p.a. on average during the next 3 years, compared to a 13% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has fallen by 22% per year, which means it is performing significantly worse than earnings. Announcement • Oct 23
Epam Launches AI/Run™.Transform to Accelerate AI-Native Transformation for the Enterprise EPAM Systems, Inc. announced the launch of AI/Run™. Transform Playbook -- the next-generation of integrated consulting services built with AI to boost enterprise-wide AI-native transformation. The ROI-driven Playbook leverages EPAM's industry expertise and engineering excellence to help companies accelerate their journey toward becoming AI-native enterprises, positioning them to adapt and excel in ever-changing market dynamics. The comprehensive AI/Run. Transform Playbook defines EPAM's next-gen AI Services model -- a purpose-built strategy that brings together AI-native delivery, strategic consulting and advisory teams, established technical expertise, operational excellence and partner ecosystem technologies. Unlike traditional consulting or fragmented technology deployments, EPAM's AI/Run. Transform integrates . Blueprints, .Talent and . Tools into a single, proven and repeatable playbook that combines 1) AI Business Innovation transformation at scale, and 2) AI Engineering Transformation throughout the entire product development lifecycle. It is powered by proven proprietary AI enablement blueprints that orchestrate multidisciplinary AI-native talent, augmented with agentic capabilities, AI automation and new services and commercial offerings, to ensure adoption-at-scale and to maximize and hedge AI ROI. In practice, the AI/Run. transform Playbook leverages a set of methodologies, blueprints, tools and accelerators to guide and ensure that clients' AI adoption-at-scale is both meaningful and purposeful, generating AI-native revenue faster than traditional revenue streams. It includes: AI/Run. Blueprints that leverage modular "Meet You Where You Are" frameworks and methodologies, AI/Run. Talent bringing together critical thinking, industry expertise and agentic capabilities to shape AI-native delivery teams, and AI/Run. Tools, a collection of proprietary, agentic-powered platforms and leading technology partner ecosystems to accelerate delivery and provide bespoke solutions for clients. EPAM's approach to AI-native adoption is designed to address a critical industry need: aligning technical and business strategies to equip organizations to fully realize the transformation potential of AI. According to Forrester, a research and advisory firm, "Alignment between the technical and business aspects of AI is a pre requisite to an AI strategy to ensure business readiness to use, manage, and scale toward an AI-enabled organization," excerpt from Launch Your AI Strategy from Vision to Execution, published on April 9, 2025. This new, forward-thinking approach to AI-native enterprise adoption is pushing to evolve offerings within industry, reimagine engagement and commercial models with clients and sets the foundation for the talent needs that will be vital in the upcoming years. EPAM is committed to redefining how enterprises innovate, operate and outpace their competitors in the AI era. Announcement • Oct 21
EPAM Systems, Inc. (NYSE:EPAM) announces an Equity Buyback for $1,000 million worth of its shares. EPAM Systems, Inc. (NYSE:EPAM) announces a share repurchase program. Under the program, the company will repurchase up to $1,000 million worth of its common shares. The program will be valid for a period of 24 months. Announcement • Oct 07
EPAM Systems, Inc. to Report Q3, 2025 Results on Nov 06, 2025 EPAM Systems, Inc. announced that they will report Q3, 2025 results Pre-Market on Nov 06, 2025 Recent Insider Transactions • Oct 05
Insider recently sold US$1.5m worth of stock On the 2nd of October, Sergey Yezhkov sold around 10k shares on-market at roughly US$151 per share. This transaction amounted to 61% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$2.6m more than they bought in the last 12 months. Announcement • Oct 03
Epam Systems, Inc. and Boss Unveil A Revolutionary Immersive Spatial Experience, Powered by Apple Vision Pro, That Redefines Motorsport Fandom EPAM Systems, Inc. announced its strategic collaboration with BOSS on a revolutionary immersive spatial experience, powered by Apple Vision Pro, that redefines motorsport fandom. This innovation brings fans into the adrenaline-fueled immersion and the heart of the race action. With strategy, design and execution led by EPAM and its Empathy Lab brand teams working side by side, this experience was designed to bring fans closer to the action than ever before, feeling as thrilling and authentic as being a racing driver. From precision visual targeting exercises to 3D spatial puzzles inspired by strategic race decisions, every step demands sharp focus and split-second reflexes. The experience finishes in a spectacular test lap, where the noise of the Aston Martin AMR25 surrounds fans. Launching ahead of the Formula 1®? Singapore Airlines Singapore Grand Prix 2025, the in-store activation debuts October 2 in specially designed installations at select BOSS locations across seven cities: London, Paris, Dusseldorf, Barcelona, Las Vegas, Dubai and Singapore. Announcement • Sep 22
EPAM Systems, Inc.(NYSE:EPAM) dropped from FTSE All-World Index (USD) EPAM Systems, Inc.(NYSE:EPAM) dropped from FTSE All-World Index (USD) Board Change • Sep 04
High number of new directors President, CEO & Director Balazs Fejes was the last director to join the board, commencing their role in the last week. Reported Earnings • Aug 08
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: US$1.56 (down from US$1.71 in 2Q 2024). Revenue: US$1.35b (up 18% from 2Q 2024). Net income: US$88.0m (down 11% from 2Q 2024). Profit margin: 6.5% (down from 8.6% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 8.8%. Revenue is forecast to grow 7.6% p.a. on average during the next 3 years, compared to a 12% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 29% per year, which means it is significantly lagging earnings. Announcement • Jul 17
EPAM Systems, Inc. Announces Availability of DIAL in the New AWS Marketplace AI Agents and Tools Category EPAM Systems, Inc. announced the availability of DIAL in the new AI Agents and Tools category of AWS Marketplace. Customers can now use AWS Marketplace to easily discover, buy and deploy AI agents solutions, including EPAM's DIAL open-source GenAI enterprise platform using their AWS accounts, accelerating agent and agentic workflow development. DIAL is an agentic AI orchestration platform that helps organizations seamlessly integrate and leverage powerful large language models from AWS Bedrock, such as Anthropic Claude, within their existing workflows. The Platform not only supports agentic workflows and data-native reasoning but also addresses key structural challenges of deploying AI-at-scale in production across business functions. It also introduces new approaches to working with structured and unstructured data using AI and fosters collaboration across entire enterprises. EPAM recently announced the DIAL 3.0 Platform which embodies EPAM's commitment and broader vision for enabling enterprise AI adoption through a modular, open-source approach - one that balances innovation velocity with long-term control, interoperability and responsible governance. EPAM DIAL delivers essential capabilities including, empowering business users with intuitive QuickApps to rapidly create AI-driven solutions without coding, while providing developers with powerful CodeApps for building and deploying customized enterprise applications. These capabilities enable organizations to seamlessly integrate AI into daily workflows, driving productivity and operational efficiency-at-scale. These features enable customers to build, manage, and scale their own secure and customized AI applications, providing greater flexibility and control over their AI solutions. With the availability of AI Agents and Tools in AWS Marketplace, customers can significantly accelerate their procurement process to drive AI innovation, reducing the time needed for vendor evaluations and complex negotiations. With centralized purchasing using AWS accounts, customers maintain visibility and control over licensing, payments, and access through AWS. Announcement • Jul 08
EPAM Systems, Inc. to Report Q2, 2025 Results on Aug 07, 2025 EPAM Systems, Inc. announced that they will report Q2, 2025 results on Aug 07, 2025 Announcement • Jun 24
Epam Systems, Inc. Announces the Release of Dial 3.0 EPAM Systems, Inc. announced the release of DIAL 3.0, the next iteration of its open-source GenAI platform. More than just a platform release, DIAL 3.0 embodies EPAM's broader vision for enabling enterprise AI adoption through a modular, open-source approach - one that balances innovation velocity with long-term control, interoperability and responsible governance. As enterprises navigate an increasingly complex AI ecosystem marked by rapid model evolution, vendor consolidation and heightened compliance expectations, EPAM continues to invest in open source platforms as a foundational enabler. DIAL 3.0 is the latest expression of this philosophy--a platform designed to help clients accelerate value delivery while avoiding vendor lock-in, bridging commercial models with open innovation. Since its initial launch in 2023, DIAL has matured from an internal enablement tool into a comprehensive framework used by global clients in financial services, healthcare, insurance, consumer packaged goods, retail and more to operationalize Generative AI. With version 3.0, EPAM introduces a platform that not only supports agentic workflows and data-native reasoning but also addresses key structural challenges of deploying AI at scale in production across business functions. It also introduces new approaches to working with structured and unstructured data using AI and fosters collaboration across entire enterprises. Valuation Update With 7 Day Price Move • May 15
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$184, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 18x in the IT industry in the US. Total loss to shareholders of 41% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$307 per share. Reported Earnings • May 09
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: US$1.29 (down from US$2.01 in 1Q 2024). Revenue: US$1.30b (up 12% from 1Q 2024). Net income: US$73.5m (down 37% from 1Q 2024). Profit margin: 5.6% (down from 10.0% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) missed analyst estimates by 3.4%. Revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 18% per year, which means it is significantly lagging earnings. Price Target Changed • May 07
Price target decreased by 7.4% to US$214 Down from US$231, the current price target is an average from 21 analysts. New target price is 34% above last closing price of US$159. Stock is down 36% over the past year. The company is forecast to post earnings per share of US$6.88 for next year compared to US$7.93 last year. Price Target Changed • May 02
Price target decreased by 7.6% to US$218 Down from US$236, the current price target is an average from 21 analysts. New target price is 36% above last closing price of US$160. Stock is down 34% over the past year. The company is forecast to post earnings per share of US$6.88 for next year compared to US$7.93 last year. Announcement • Apr 08
EPAM Systems, Inc. to Report Q1, 2025 Results on May 08, 2025 EPAM Systems, Inc. announced that they will report Q1, 2025 results on May 08, 2025 Announcement • Apr 02
EPAM Systems, Inc., Annual General Meeting, May 22, 2025 EPAM Systems, Inc., Annual General Meeting, May 22, 2025. Recent Insider Transactions Derivative • Mar 25
Co-Founder exercised options and sold US$3.6m worth of stock On the 21st of March, Arkadiy Dobkin exercised 50.00k options at around US$61.38, then sold 32k of the shares acquired at an average of US$175 per share and kept the remainder. For the year to December 2018, Arkadiy's total compensation was 11% salary and 89% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2024, Arkadiy's direct individual holding has decreased from 1.71m shares to 1.70m. Company insiders have collectively sold US$6.1m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Mar 11
Insider recently sold US$1.1m worth of stock On the 4th of March, Balazs Fejes sold around 5k shares on-market at roughly US$200 per share. This transaction amounted to 98% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$13m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Feb 28
Insider exercised options to buy US$2.7m worth of stock. On the 25th of February, Victor Dvorkin exercised options to buy 13k shares at a strike price of around US$73.27, costing a total of US$943k. This transaction amounted to 38% of their direct individual holding at the time of the trade. Since March 2024, Victor's direct individual holding has increased from 21.00k shares to 34.02k. Company insiders have collectively sold US$13m more than they bought, via options and on-market transactions in the last 12 months. Valuation Update With 7 Day Price Move • Feb 27
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to US$213, the stock trades at a forward P/E ratio of 31x. Average forward P/E is 20x in the IT industry in the US. Total loss to shareholders of 13% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$316 per share. Reported Earnings • Feb 20
Full year 2024 earnings: Revenues and EPS in line with analyst expectations Full year 2024 results: EPS: US$7.93 (up from US$7.21 in FY 2023). Revenue: US$4.73b (flat on FY 2023). Net income: US$454.5m (up 9.0% from FY 2023). Profit margin: 9.6% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 9.6% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has fallen by 16% per year, which means it is significantly lagging earnings. Announcement • Feb 20
EPAM Systems, Inc. Provides Earnings Guidance for the First Quarter and Full Year 2025 EPAM Systems, Inc. provided earnings guidance for the first quarter and full year 2025. For the quarter, the company expects revenues will be in the range of $1.275 billion to $1.290 billion for the first quarter reflecting a year-over-year increase of 10.0% at the midpoint of the range. The Company expects year-over-year revenue growth on an organic constant currency basis to be approximately flat at the midpoint of the range. EPAM expects GAAP income from operations to be in the range of 6.5% to 7.5% of revenues. EPAM expects GAAP diluted EPS will be in the range of $1.27 to $1.37for the quarter.
For the year, the Company expects the year-over-year revenue growth rate to be in the range of 10.0% to 14.0% for 2025. The Company expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 1.0% to 5.0%, EPAM expects GAAP income from operations to be in the range of 9.0% to 10.0% of revenues, EPAM expects GAAP diluted EPS will be in the range of $6.78 to $7.08 for the year. Announcement • Jan 22
EPAM Systems, Inc. to Report Q4, 2024 Results on Feb 20, 2025 EPAM Systems, Inc. announced that they will report Q4, 2024 results on Feb 20, 2025 Recent Insider Transactions Derivative • Dec 12
Insider notifies of intention to sell stock Victor Dvorkin intends to sell 7k shares in the next 90 days after lodging an Intent To Sell Form on the 11th of December. If the sale is conducted around the recent share price of US$255, it would amount to US$1.8m. Since December 2023, Victor's direct individual holding has increased from 19.19k shares to 21.00k. Company insiders have collectively sold US$15m more than they bought, via options and on-market transactions in the last 12 months. Announcement • Dec 03
EPAM Systems, Inc. (NYSE:EPAM) completed the acquisition of First Derivatives (Ireland) Limited from FD Technologies plc (AIM:FDP). EPAM Systems, Inc. (NYSE:EPAM) has entered into an agreement to acquire First Derivatives (Ireland) Limited from FD Technologies plc (AIM:FDP) for £230 million on October 6, 2024. Pursuant to the terms of the Sale and Purchase Agreement, the Company has conditionally agreed to sell the entire issued share capital of the Target to the Purchaser for total consideration of £230 million on a cash-free, debt-free basis. The Group will complete the Group Reorganisation pursuant to which the First Derivative Business (including the Target Group Companies) will be transferred out of the Existing Group and into the Target, to the extent not already held by the Target. The consideration payable by the Purchaser to the Company at completion is expected to be approximately £225 million, following adjustment for debt and debt-like items and a customary working capital adjustment. As part of the Divestment, the Company and the Purchaser have entered into a Transitional Services Agreement. After customary closing adjustments, transaction and separation costs, net cash proceeds are expected to be approximately £205 million. The Purchaser may terminate the Sale and Purchase Agreement with immediate effect if a Material Breach occurs prior to the satisfaction of the Conditions and which either (a) cannot be remedied; or (b) if capable of remedy, is not remedied, in each case within 20 Business Days from the date on which the Company is made aware of such Material Breach. For the year ending February 29, 2024, First Derivative Business had a revenue of £169.7 million and adjusted EBITDA of £18 million.
Completion of the Sale and Purchase Agreement is conditional upon satisfaction or (where applicable) waiver of the following conditions, a) the passing of the Resolution at the General Meeting (the "Shareholder Approval Condition"); b) in relation to the Group Reorganisation: (i) the Target Group being an original party or becoming a party by way of assignment, transfer or novation to certain customer contracts that together accounted for at least 80% of the First Derivative Business's revenue for the financial year ended 29 February 2024 (and disregarding certain customer contracts as agreed in writing between the parties); (c) the Irish Competition and Consumer Protection Commission having determined (or being deemed to have determined) pursuant to Part 3 of the Irish Competition Act 2002 (as amended) that the Divestment may be put into effect (the "Competition Condition"). The acquisition is subject to customary closing conditions, including the receipt of necessary regulatory clearances, and is expected to close in the fourth quarter of 2024. Following completion of the Divestment the Group is expected to apply the net proceeds to: (i) repay the Group's net debt, which was approximately £20 million on 31 August 2024; (ii) to provide the financial resources to execute the KX business plan; and (iii) to return a portion of the proceeds which represents excess capital to shareholders. The Board reiterates its expectation that KX will generate positive cash flow for FY27. As on October 24, 2024, FD Technologies Shareholders at the General Meeting of the Company held earlier today approved the sale of the First Derivative Business to EPAM Systems.
Stone Key Partners LLC acted as financial advisor and Faegre Drinker Biddle & Reath LLP acted as legal advisor to EPAM Systems. Eimear Coady, Tim Harrop tax, Nigel Parker and Matt Hamilton-Foyn of Allen Overy Shearman Sterling LLP acted as legal advisor to FD Technologies. Anton Black, Warner Mandel and Mitul Manji of Rothschild & Co, James A. Kelly, Mose Adigun and Will Vanderspar of J.P. Morgan Cazenove, Carlton Nelson and Virginia Bull of Investec Bank plc acted as financial advisor to FD Technologies.
EPAM Systems, Inc. (NYSE:EPAM) completed the acquisition of First Derivatives (Ireland) Limited from FD Technologies plc (AIM:FDP) on December 3, 2024. The acquisition successfully closed after meeting all customary closing conditions, including the receipt of necessary regulatory clearances. Price Target Changed • Nov 08
Price target increased by 8.5% to US$242 Up from US$223, the current price target is an average from 23 analysts. New target price is approximately in line with last closing price of US$233. Stock is down 0.8% over the past year. The company is forecast to post earnings per share of US$7.88 for next year compared to US$7.21 last year. Reported Earnings • Nov 08
Third quarter 2024 earnings: EPS and revenues exceed analyst expectations Third quarter 2024 results: EPS: US$2.40 (up from US$1.68 in 3Q 2023). Revenue: US$1.17b (up 1.3% from 3Q 2023). Net income: US$136.3m (up 40% from 3Q 2023). Profit margin: 12% (up from 8.4% in 3Q 2023). The increase in margin was primarily driven by lower expenses. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 32%. Revenue is forecast to grow 8.1% p.a. on average during the next 3 years, compared to a 9.2% growth forecast for the IT industry in the US. Over the last 3 years on average, earnings per share has fallen by 1% per year but the company’s share price has fallen by 30% per year, which means it is performing significantly worse than earnings. Announcement • Nov 08
EPAM Systems, Inc., in Collaboration with IMF, Launch StatGPT 2.0, a GenAI Application for Global Economic Data, to SDMX Sponsor Organizations EPAM Systems, Inc. announced the release of the StatGPT 2.0 Platform, created in collaboration with the International Monetary Fund (IMF) for evaluating and testing by Statistical Data and Metadata eXchange (SDMX) sponsor organizations and selected national statistical organizations. The Platform will be shown at the 2024 IMF Statistical Forum: Measuring the Implications of AI on the Economy. EPAM's StatGPT 1.0, was initially presented in October 2023 at the World SDMX Congress in Bahrain and then shown at numerous events, including the UNECE meeting of the Conference of European Statisticians and the various SDMX forums. EPAM created StatGPT based on EPAM DIAL and EPAM QuantHub platforms as a cornerstone of its next-generation conversational data exploration and analytics solutions. SDMX is a set of technical standards designed to describe statistical data and metadata, normalize their exchange and improve their efficient sharing across statistical and similar organizations. It is published as ISO 17369. The SDMX initiative also receives support from the Bank for International Settlements (BIS), the European Central Bank (ECB), Eurostat (the statistical office of the European Union), the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the United Nations Statistics Division (UNSD), and the World Bank. The IMF is a multilateral organization that works to achieve sustainable growth and prosperity for all of its 191 member countries. It does so by supporting economic policies that promote financial stability and monetary cooperation, which are essential to increase productivity, job creation, and economic well-being. The new version, StatGPT 2.0, introduces a new approach to data accessibility and user interaction in statistical data management and exchange. It is based on the EPAM DIAL technology and was built over the last six months in close collaboration with IMF experts. The Platform allows users to access and engage with the world's economic and financial data using natural language. It is more efficient than current query tools and ensures users are directed to the right data and understand how to best use it. StatGPT 2.0's evaluation included eight publicly available datasets from international and national statistical agencies and was evaluated by more than 100 representatives from SDMX sponsoring institutions and national statistical organizations. Valuation Update With 7 Day Price Move • Nov 07
Investor sentiment improves as stock rises 23% After last week's 23% share price gain to US$233, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 16x in the IT industry in the US. Total loss to shareholders of 65% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$438 per share. Announcement • Nov 07
Epam Systems, Inc. Provides Earnings Guidance for the Fourth Quarter and for Full Year 2024 EPAM Systems, Inc. provided earnings guidance for the fourth quarter and for full year 2024. For the quarter, the company expects revenues will be in the range of $1.205 billion to $1.215 billion reflecting year-over-year growth of 4.6% at the midpoint of the range. Included in the outlook is an inorganic revenue contribution of 5.7% of which 4.7% comes from NEORIS which was acquired on November 1, 2024. The Company expects that revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 1.5% at the midpoint of the range; For the fourth quarter, EPAM expects GAAP income from operations to be in the range of 10.5% to 11.5% of revenues and EPAM expects GAAP diluted EPS will be in the range of $1.73to $1.81for the quarter.
For the year, the company expects revenues to be $4.685 billion to $4.695 billion for the full year reflecting flat year-over-year growth at the midpoint of the range. Included in the outlook is an inorganic revenue contribution of 2.4% of which 1.2% comes from NEORIS which was acquired on November 1, 2024. The Company now expects revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline 2.3% at the midpoint of the range; For the full year, EPAM expects GAAP income from operations to now be in the range of 11.0% to 11.5% of revenues. EPAM expects GAAP diluted EPS to now be in the range of $7.78 to $7.86. 
