Epam Systems (EPAM) | News Based Sentiment Analysis

• On August 7, 2025, EPAM Systems reported a strong second quarter, exceeding expectations with revenue reaching $1.353 billion – an 18% year-over-year increase, and non-GAAP diluted EPS of $2.77, $0.16 above the consensus estimate. This strong performance signaled continued growth momentum and set the stage for a revised outlook.
• Following the positive Q2 results, EPAM raised its full-year revenue growth expectation to a range of 13% to 15% year-over-year on August 7, 2025, with organic constant currency revenue growth projected between 3% and 5%. This optimistic outlook reflects strong client demand, particularly for generative AI solutions.
• Leadership at EPAM underwent a transition effective September 1, 2025, with Arkadiy Dobkin appointed Executive Chairman and Balazs Fejes becoming CEO and President, receiving a base salary of $850,000 and $670,000 in RSUs. This ensures continuity and alignment with long-term shareholder value, as Balazs Fejes has been with EPAM since 2004.
• Analysts continue to express confidence in EPAM, with an average price target of $222.21 as of September 2025, forecasting a 42.72% increase over the next year, ranging from $171 to $295. This broad analyst confidence underscores the company's potential for future growth.
• Rothschild & Co Redburn adjusted EPAM’s price target to $190 from $180 on September 3, 2025, maintaining a Neutral rating, while Morgan Stanley adjusted its price target to $175 from $210 on September 9, 2025, also maintaining a Hold rating. These adjustments reflect differing analyst perspectives on the company’s valuation.
• Simply Wall St assessed EPAM Systems as undervalued on September 2, 2025, with a fair value of $212.69 based on a discounted cash flow (DCF) model, following the Q2 2025 results and strong demand for AI services.
• EPAM Systems’ stock has risen 18.8% year-to-date as of September 10, 2025, and following the Q2 2025 earnings report on August 7, 2025, the stock climbed 9.05% in pre-market trading to $165 per share.

The Investment Story: EPAM Systems continued its strong performance in September 2025, building on a stellar Q2 with raised guidance and positive, though varied, analyst sentiment, alongside a planned leadership transition. The company’s focus on AI remains a key driver of growth and investor interest.

What It Means for Investors: The company’s strong financial results and strategic focus on AI suggest continued growth potential, making it an attractive investment. However, differing analyst perspectives on valuation indicate some caution is warranted. The successful execution of the leadership transition will be crucial.

Looking Ahead: Investors should monitor EPAM’s continued performance in AI-driven solutions and track the integration of the new leadership team. Further analyst updates and the company’s Q3 2025 results will be key indicators of future success.

The Bottom Line: EPAM Systems remains a well-positioned company with strong fundamentals and a clear growth strategy centered around AI. While analyst opinions vary, the overall outlook remains positive, but continued monitoring of execution and market dynamics is advised.