Analyst Consensus ?
ConsensusBuy35 ratings
Bullish2262.9%
Neutral1234.3%
Bearish12.8%
1 unmapped firm rating excluded from the percentages.
EPAM Systems, Inc. · EPAM · FY2026 Q2 · Calendar Q3 2026
EPAM’s AI growth accelerates as North America weighs on guidance
EPAM’s Q2 supports the case that AI-led demand can drive growth: AI-native revenue accelerated and margins expanded. However, lower guidance, North America weakness and negative free cash flow make the next-year trajectory dependent on commercial execution and conversion of AI demand into durable revenue.
Reported Before market openNYSETechnology
$5.91B market cap
100quality score
Earnings scorecard
Reported versus consensus
Reported EPS
$3.38
Consensus $3.16
EPS surprise
+7.0%
Reported versus consensus
Reported revenue
$1.41B
Consensus $1.41B
Revenue surprise
+0.5%
Reported versus consensus
Market reaction
prior-close to event-session close
Stock move
-15.3%
Event window
SPY move
-0.2%
Same window
Abnormal move
-15.1%
Stock minus SPY
Volume
2.3×
Versus trailing sessions
Subsequent drift
+28.8%
Up to 20 sessions
EPAMSPY benchmark
Ask FN2 about EPAM FY2026 Q2
Transcript, numbers and history already loaded
Why did EPAM fall 15.3% after beating EPS estimates in FY2026 Q2?What changed in EPAM's guidance and outlook in FY2026 Q2?Give me the bull and bear case for EPAM after FY2026 Q2 earnings.
Free account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
AI-native revenue rose above $160 million and reached 11% of revenue, while margins expanded. The company joined the OpenAI Partner Network and broadened its AI strategy, but lowered FY 2026 growth guidance because of North America weakness and reported negative Q2 free cash flow tied to higher DSO.
Guidance delta
FY 2026 revenue growth guidance was lowered to 3.2–4.2%; free-cash-flow conversion is expected to be about 70%.
Key takeaways
- AI-native revenue exceeded $160 million, or 11% of total revenue, after six consecutive quarters of double-digit sequential growth.
- Q2 revenue was $1.415 billion, up 4.5% year over year, while margins expanded.
- North America lagged, prompting a multi-quarter commercial transformation and expanded sales organization.
- Management is targeting $600 million of AI-native revenue in 2026, but cash flow turned negative in Q2 as DSO increased.
Management priorities
- Execute the multi-quarter North America commercial transformation
- Expand AI-native offerings across security, managed services and industry-specific solutions
- Certify more than 10,000 specialists on OpenAI models and 10,000 on Google Gemini
- Build a full-stack agentic engineering workforce through academies and hiring
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Try FN2 freeEarnings History
Estimate
Beat
Miss
Match
Analyst 52W Price Targets
$113.13Previous close
$85Low
$230.03Average
$750High
Latest persisted target per named analyst; persisted previous close from FN2's market snapshot as of Sep 22, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| JP Morgan | Neutral | Overweight | Downgrade | Aug 26, 2026 |
| Guggenheim | Buy | Buy | Maintain | Aug 10, 2026 |
| Truist Securities | Hold | Hold | Maintain | Aug 7, 2026 |
| TD Cowen | Buy | Buy | Maintain | Aug 7, 2026 |
| Susquehanna | Positive | Positive | Maintain | Aug 7, 2026 |
| William Blair | Market Perform | Outperform | Downgrade | Aug 6, 2026 |
| Needham | Buy | Buy | Maintain | Aug 6, 2026 |
| Morgan Stanley | Equal Weight | Equal Weight | Maintain | Aug 4, 2026 |
| Citigroup | Neutral | Neutral | Maintain | Jul 27, 2026 |
| Wells Fargo | Overweight | Overweight | Maintain | Jul 10, 2026 |
| Jefferies | Hold | Buy | Downgrade | May 29, 2026 |
| Goldman Sachs | Neutral | Buy | Downgrade | May 8, 2026 |
| Mizuho | Outperform | Outperform | Maintain | Mar 16, 2026 |
| Barclays | Overweight | Overweight | Maintain | May 12, 2025 |
| Piper Sandler | Neutral | Neutral | Maintain | May 9, 2025 |
| Stifel | Buy | Buy | Maintain | May 2, 2025 |
| Scotiabank | Sector Outperform | Sector Outperform | Maintain | Apr 29, 2025 |
| Wolfe Research | Peer Perform | Outperform | Downgrade | May 17, 2024 |
| Wedbush | Outperform | Outperform | Maintain | Apr 10, 2024 |
| HSBC | Buy | Buy | Maintain | Apr 3, 2024 |
| Keybanc | Overweight | Downgrade | Jun 6, 2023 | |
| B of A Securities | Underperform | Buy | Downgrade | Jun 5, 2023 |
| Cowen & Co. | Market Perform | Outperform | Downgrade | Feb 17, 2023 |
| VTB Capital | Buy | Hold | Upgrade | Nov 23, 2021 |
| Cantor Fitzgerald | Overweight | Overweight | Maintain | May 7, 2020 |
| Bank of America | Neutral | Buy | Downgrade | Sep 4, 2018 |
| SunTrust Robinson Humphrey | Buy | Buy | Maintain | Apr 19, 2018 |
| Stifel Nicolaus | Buy | Buy | Maintain | Feb 20, 2018 |
| UBS | Neutral | Buy | Downgrade | Nov 29, 2017 |
| Credit Suisse | Outperform | Outperform | Maintain | Apr 7, 2017 |
| Monness, Crespi, Hardt | Buy | Neutral | Upgrade | Oct 20, 2016 |
| Monness Crespi Hardt | Buy | Neutral | Upgrade | Oct 20, 2016 |
| Pacific Crest | Overweight | Overweight | Maintain | Jul 12, 2016 |
| Berenberg | Buy | Buy | Maintain | Apr 15, 2016 |
| Sterne Agee CRT | Buy | Buy | Maintain | Dec 17, 2015 |
| Renaissance Capital | Buy | Hold | Upgrade | Nov 19, 2015 |
Named analyst price targets
Upside is calculated against the persisted previous close $113.13. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| Guggenheim | Jonathan Lee | $140 | $97.43 | +23.8% | Aug 10, 2026 |
| Mizuho Securities | Analyst unavailable | $130 | $97.43 | +14.9% | Aug 10, 2026 |
| Truist Financial | Arvind Ramnani | $110 | $96.56 | -2.8% | Aug 7, 2026 |
| Needham | Mayank Tandon | $120 | $96.88 | +6.1% | Aug 7, 2026 |
| Morgan Stanley | Analyst unavailable | $97 | $96.59 | -14.3% | Aug 7, 2026 |
| Stifel Nicolaus | David Grossman | $135 | $93.7 | +19.3% | Aug 6, 2026 |
| Morgan Stanley | James Faucette | $100 | $106.12 | -11.6% | Aug 4, 2026 |
| Deutsche Bank | Nate Svensson | $85 | $87.29 | -24.9% | Jul 10, 2026 |
| Wells Fargo | Analyst unavailable | $125 | $87.29 | +10.5% | Jul 10, 2026 |
| Wedbush | Analyst unavailable | $99 | $95.38 | -12.5% | Jun 15, 2026 |
| Jefferies | Surinder Thind | $110 | $101.43 | -2.8% | May 29, 2026 |
| Morgan Stanley | Analyst unavailable | $112 | $99.81 | -1.0% | May 8, 2026 |
| Truist Financial | Analyst unavailable | $112 | $100.03 | -1.0% | May 8, 2026 |
| Goldman Sachs | Analyst unavailable | $110 | $104.24 | -2.8% | May 8, 2026 |
| Morgan Stanley | Analyst unavailable | $148 | $110.6 | +30.8% | May 5, 2026 |
| Guggenheim | Analyst unavailable | $200 | $112.33 | +76.8% | May 4, 2026 |
| Susquehanna | James Friedman | $167 | $112.33 | +47.6% | May 4, 2026 |
| Truist Financial | Arvind Ramnani | $146 | $141.14 | +29.1% | Feb 20, 2026 |
| Morgan Stanley | Analyst unavailable | $160 | $139.16 | +41.4% | Feb 20, 2026 |
| Goldman Sachs | James Schneider | $235 | $139.16 | +107.7% | Feb 19, 2026 |
| Wells Fargo | Jason Kupferberg | $247 | $211.99 | +118.3% | Jan 14, 2026 |
| Truist Financial | Analyst unavailable | $220 | $206.61 | +94.5% | Jan 6, 2026 |
| Wells Fargo | Jason Kupferberg | $185 | $155.08 | +63.5% | Oct 21, 2025 |
| Morgan Stanley | James Faucette | $175 | $164.94 | +54.7% | Sep 9, 2025 |
| Barclays | Analyst unavailable | $200 | $159.12 | +76.8% | Apr 25, 2025 |
| Morgan Stanley | James Faucette | $256 | $253.96 | +126.3% | Jan 31, 2025 |
| Mizuho Securities | Dan Dolev | $282 | $193.21 | +149.3% | Nov 13, 2024 |
| Piper Sandler | Arvind Ramnani | $225 | $198.63 | +98.9% | Sep 24, 2024 |
| Mizuho Securities | Dan Dolev | $245 | $203.54 | +116.6% | Sep 5, 2024 |
| Deutsche Bank | Bryan Keane | $204 | $200.85 | +80.3% | Aug 21, 2024 |
| Jefferies | Surinder Thind | $237 | $209.35 | +109.5% | Jul 16, 2024 |
| Piper Sandler | Arvind Ramnani | $230 | $180.05 | +103.3% | Jun 13, 2024 |
| Mizuho Securities | Sean Kennedy | $258 | $190.72 | +128.1% | May 14, 2024 |
| Needham | Mayank Tandon | $210 | $182.04 | +85.6% | May 10, 2024 |
| Jefferies | Surinder Thind | $202 | $181.37 | +78.6% | May 10, 2024 |
| Scotiabank | Sector Perform | $245 | $181.93 | +116.6% | May 10, 2024 |
| Wedbush | Moshe Katri | $230 | $181.93 | +103.3% | May 9, 2024 |
| Barclays | Ramsey El-Assal | $265 | $237.13 | +134.2% | Apr 26, 2024 |
| Morgan Stanley | James Faucette | $225 | $237.13 | +98.9% | Apr 26, 2024 |
| Guggenheim | Jonathan Lee | $350 | $292.7 | +209.4% | Mar 18, 2024 |
| HSBC | Phani Kanumuri | $350 | $297.44 | +209.4% | Jan 8, 2024 |
| Susquehanna | James E Friedman | $300 | $211.33 | +165.2% | Jun 9, 2023 |
| Needham | Mayank Tandon | $275 | $206.77 | +143.1% | Jun 5, 2023 |
| Susquehanna | James Friedman Friedman | $475 | $364.12 | +319.9% | Sep 24, 2022 |
| Stifel Nicolaus | David Grossman | $500 | $403.72 | +342.0% | Aug 4, 2022 |
| Wedbush | Moshe Katri | $400 | $303.49 | +253.6% | Jun 11, 2022 |
| Piper Sandler | Arvind Ramnani | $403 | $331.14 | +256.2% | Jun 8, 2022 |
| Susquehanna | James Friedman | $370 | $319.25 | +227.1% | May 16, 2022 |
| Barclays | Ramsey El-Assal | $410 | $347 | +262.4% | May 9, 2022 |
| Stifel Nicolaus | David Grossman | $411 | $343.52 | +263.3% | May 6, 2022 |
| Morgan Stanley | James Faucette | $465 | $347 | +311.0% | May 6, 2022 |
| Piper Sandler | Arvind Ramnani | $348 | $264.99 | +207.6% | May 2, 2022 |
| Wolfe Research | Darrin Peller | $390 | $307.99 | +244.7% | Apr 13, 2022 |
| Morgan Stanley | James Faucette | $450 | $308.69 | +297.8% | Apr 10, 2022 |
| Piper Sandler | Arvind Ramnani | $359 | $287.04 | +217.3% | Apr 3, 2022 |
| Needham | Mayank Tandon | $285 | $200.14 | +151.9% | Mar 11, 2022 |
| Cowen & Co. | Bryan Bergin | $355 | $198.52 | +213.8% | Mar 4, 2022 |
| Stifel Nicolaus | David Grossman | $385 | $245.17 | +240.3% | Mar 2, 2022 |
| Wolfe Research | Darrin Peller | $550 | $443.23 | +386.2% | Feb 18, 2022 |
| Susquehanna | James Friedman | $490 | $443.23 | +333.1% | Feb 18, 2022 |
| VTB Capital | Vladimir Bespalov | $750 | $602.94 | +563.0% | Nov 23, 2021 |
| Wells Fargo | Timothy Willi | $510 | $458.38 | +350.8% | May 6, 2021 |
Track every rating change on EPAM the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationEPAM Systems, Inc. is a leading global provider of comprehensive digital platform engineering and software development solutions. The company's extensive service portfolio includes: Engineering Services: From initial requirements analysis and strategic platform selection to tailored customization, seamless cross-platform migration, and robust implementation and integration of new systems. Infrastructure Management: Covering the full lifecycle of software development, rigorous testing, and ongoing maintenance across private, public, and mobile infrastructures. This includes overseeing operations for applications, databases, networks, servers, storage, and broader systems management, alongside proactive monitoring, incident notification, and rapid resolution. Maintenance and Support: Ensuring the sustained performance and reliability of client systems. Operational Enhancement: Delivering solutions that streamline processes through integrated engineering practices and intelligent automation.…
Historical context
All EPAM earningsTechnology peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| ADBE Adobe Inc. | FY2026 Q3 · Calendar Q3 2026 | +0.8% | +1.4% | Adobe raises FY26 outlook as AI strategy broadens |
| ORCL Oracle Corporation | FY2027 Q1 · Calendar Q3 2026 | +10.3% | -1.7% | Oracle raises FY27 outlook as AI demand accelerates cloud growth |
| SAIL SailPoint, Inc. | FY2027 Q2 · Calendar Q3 2026 | +13.8% | -1.2% | SailPoint pairs 25% ARR growth with accelerating AI-driven adoption |
| CIEN Ciena Corporation | FY2026 Q3 · Calendar Q3 2026 | +22.0% | -10.4% | Ciena raises outlook as AI networking demand lifts backlog |
| DOCU DocuSign, Inc. | FY2027 Q2 · Calendar Q3 2026 | +6.4% | +3.7% | DocuSign Q2 FY27: IAM momentum supports a raised outlook |
| IOT Samsara Inc. | FY2027 Q2 · Calendar Q3 2026 | +25.0% | +3.7% | Samsara: AI adoption expands as FY27 guidance holds |
Latest beats and misses
Who reports nextBeat on EPS
- FPSFY2026 Q4 · September 15, 2026+4.3% EPS+9.5% move
- TCOMFY2026 Q2 · September 15, 2026+22.3% EPS+3.0% move
- KRFY2026 Q2 · September 11, 2026+2.8% EPS+2.7% move
- ADBEFY2026 Q3 · September 10, 2026+0.8% EPS+1.4% move
- ORCLFY2027 Q1 · September 10, 2026+10.3% EPS-1.7% move
- CASYFY2027 Q1 · September 8, 2026+8.7% EPS-14.2% move
Get the EPAM recap when the next report posts
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Sources
- Earnings call transcript and parsed analysis · 2026-08-06T20:13:19.083415+00:00
- FN2 earnings calendar · 2026-09-11T01:23:15.000588+00:00
- Polygon adjusted daily market bars · 2026-09-22T11:10:51.621378+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-09-22T11:10:51.618655+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-09-22. For educational purposes only; not investment advice.