EPAM Systems (EPAM) Is Up 13.7% After Strong Q3, Raised Guidance and $1B Buyback Announcement

• EPAM Systems reported third quarter 2025 results with revenues of US$1,394.37 million and net income of US$106.82 million, while also raising its full-year revenue growth and earnings guidance and announcing a new US$1 billion share repurchase program.
• The introduction of new AI offerings and the expansion of share buybacks highlight EPAM's focus on AI-driven services and confidence in its ongoing business momentum.
• We'll explore how EPAM's higher revenue guidance and investment in AI-native services influence its long-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

EPAM Systems Investment Narrative Recap

To hold EPAM Systems shares, you need to believe in its role as a transformation partner for enterprises adopting AI, cloud, and advanced data services. The recent earnings and guidance upgrades support the importance of AI-native growth as the immediate catalyst, while risks tied to margin pressure from competition, wage inflation, and industry-wide automation remain; the latest results and buyback plan are positive for sentiment, but the company’s exposure to these risks has not materially changed.

Among recent announcements, EPAM’s full-year revenue guidance increase stands out, highlighting management’s confidence in the strength of AI-powered service demand. This ties directly to the catalyst of growing client reliance on EPAM for complex digital transformation, which underpins the long-term case for the stock.

However, investors should also be aware that, in contrast, persistent wage inflation and competition for IT talent could challenge...

Read the full narrative on EPAM Systems (it's free!)

EPAM Systems' outlook anticipates $6.5 billion in revenue and $582.4 million in earnings by 2028. This is based on analysts expecting 8.8% annual revenue growth and a $181.2 million increase in earnings from the current $401.2 million.

Uncover how EPAM Systems' forecasts yield a $202.06 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Nine Simply Wall St Community members placed EPAM’s fair value between US$160 and US$267 per share, reflecting broad differences in growth outlooks. While many expect improved performance as digital transformation accelerates, some are cautious about margin risks from rising industry competition and talent costs; exploring multiple viewpoints is key to forming your own conviction.

Explore 9 other fair value estimates on EPAM Systems - why the stock might be worth 11% less than the current price!

Build Your Own EPAM Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free EPAM Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EPAM Systems' overall financial health at a glance.

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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.

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