EPAM Systems (EPAM): Fresh Earnings and Buyback Spark Interest — What’s the Stock Worth Now?

EPAM Systems has drawn renewed attention following upbeat third-quarter earnings, an increase in both full-year and Q4 guidance, and a newly announced $1 billion share repurchase program. The company is also focusing on AI-driven offerings and industry partnerships.

See our latest analysis for EPAM Systems.

After a tough year that saw EPAM Systems’ total shareholder return drop more than 27%, recent upbeat earnings, higher full-year guidance, and a major buyback have reignited momentum in a big way. This renewed momentum is reflected in a 23% share price gain over the past month and 12% in just the last week. While longer-term performance remains underwhelming, the latest moves and rising optimism around AI-driven growth show the narrative around EPAM may be shifting for the better.

If you're curious what other technology leaders are showing new signs of life, it could be the perfect moment to discover See the full list for free.

With shares rebounding but still trading nearly 18% below analyst targets, investors now face a key question: is EPAM still undervalued given surging AI momentum and raised guidance, or has the market already priced in what comes next?

Most Popular Narrative: 10.9% Undervalued

Compared to EPAM Systems’ last close of $180.12, the most widely followed narrative suggests a fair value that sits meaningfully higher. Investors are now debating whether this spread reflects true opportunity or lingering risk as momentum builds around AI and guidance upgrades.

The analysts have a consensus price target of $211.125 for EPAM Systems based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $246.0, and the most bearish reporting a price target of just $171.0.

Read the complete narrative.

Can EPAM's AI-powered expansion really propel revenue and profits to levels that justify this price target? One set of quantitative assumptions underpins the optimism, but the details behind the growth, margins, and share decline could surprise you.

Result: Fair Value of $202.06 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising automation and persistent wage inflation could still compress margins and challenge EPAM's efforts to deliver sustained and high-value growth.

Find out about the key risks to this EPAM Systems narrative.

Build Your Own EPAM Systems Narrative

If you see things differently or want to examine the numbers firsthand, you can shape your own take on EPAM in just a few minutes. Do it your way

A great starting point for your EPAM Systems research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

Looking for More Great Investment Ideas?

Every savvy investor knows that the next big winner could already be taking off. Make sure you are ahead of the curve with these handpicked opportunities from the Simply Wall Street Screener.

• Capitalize on tomorrow’s technology by checking out these 27 AI penny stocks, where small-cap innovators are powering advancements in artificial intelligence and machine learning.
• Capture bigger yields for your portfolio by evaluating these 14 dividend stocks with yields > 3%, featuring stocks with strong and reliable dividends above 3%.
• Ride the momentum of financial transformation by scanning these 82 cryptocurrency and blockchain stocks for companies driving the next breakthroughs in blockchain, payments, and decentralized finance.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com