EPAM Systems, Inc. Just Recorded A 5.9% EPS Beat: Here's What Analysts Are Forecasting Next

EPAM Systems, Inc. (NYSE:EPAM) shareholders are probably feeling a little disappointed, since its shares fell 7.7% to US$97.43 in the week after its latest quarterly results. The result was positive overall - although revenues of US$1.4b were in line with what the analysts predicted, EPAM Systems surprised by delivering a statutory profit of US$1.97 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, EPAM Systems' 18 analysts are forecasting 2026 revenues to be US$5.66b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 7.2% to US$8.35. Before this earnings report, the analysts had been forecasting revenues of US$5.73b and earnings per share (EPS) of US$8.31 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for EPAM Systems

With no major changes to earnings forecasts, the consensus price target fell 8.2% to US$124, suggesting that the analysts might have previously been hoping for an earnings upgrade. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic EPAM Systems analyst has a price target of US$200 per share, while the most pessimistic values it at US$85.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that EPAM Systems' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.5% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than EPAM Systems.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that EPAM Systems' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of EPAM Systems' future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for EPAM Systems going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.