Will AI-Led Growth and Analyst Upgrade Change EPAM Systems' (EPAM) Investment Narrative?

• In August 2025, EPAM Systems reported fiscal second quarter results that exceeded analyst expectations and raised its full-year revenue growth forecast, supported by AI-led solutions and modernization initiatives.
• The company's recent delivery restructuring and a three-quarter streak of organic revenue acceleration prompted TD Cowen to upgrade its analyst rating, highlighting EPAM's renewed focus on sales execution and client expansion.
• We’ll examine how EPAM’s momentum in AI-led revenue growth and recent upgrade could reshape its long-term investment narrative.

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EPAM Systems Investment Narrative Recap

To be comfortable as an EPAM Systems shareholder, I believe one needs confidence in the company's ability to sustain growth through enterprise adoption of AI and modernization services. The recent results and analyst upgrade confirm momentum in AI-led revenue and sales execution, supporting a key near-term catalyst. However, margin recovery remains the biggest risk, as wage inflation and talent competition could persist; the latest update does not materially reduce this concern.

Of the recent announcements, EPAM's expanded generative AI partnership with AWS closely aligns with current growth drivers highlighted by analysts. This collaboration reinforces EPAM’s positioning at the intersection of cloud migration and enterprise AI, supporting potential revenue acceleration while customers increase reliance on transformation expertise.

Yet, in contrast to this AI-driven momentum, wage inflation and competition for engineers continue to be risks that investors should be aware of if...

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

EPAM Systems' outlook forecasts $6.5 billion in revenue and $582.4 million in earnings by 2028. This implies an 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 $212.69 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Six fair value estimates from the Simply Wall St Community span US$160 to US$267 per share, showing a wide spectrum of outlooks. While AI solutions fuel new growth opportunities, the persistent margin pressures from wage inflation may weigh on future performance and are top of mind for many participants.

Explore 6 other fair value estimates on EPAM Systems - why the stock might be worth 9% 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 3 key rewards 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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