EPAM Systems, Inc. (NYSE:EPAM) Faces Challenges Despite Strong Performance

Font: Financial Modeling Prep  • Feb 20, 2026

• Goldman Sachs analyst James Schneider sets a price target of $235 for EPAM, indicating a potential increase of approximately 68.87%.
• EPAM's stock experienced a significant decline of 18.4% despite surpassing Q4 2025 sales and earnings expectations.
• The company emphasizes scaling and accelerating AI-native revenues, aligning with the growing demand for AI enhancements in business systems.

EPAM Systems, Inc. (NYSE:EPAM) is a global provider of digital platform engineering and software development services. The company is known for its expertise in delivering complex software solutions to a wide range of industries. EPAM competes with other technology service providers like Accenture and Cognizant. Recently, James Schneider from Goldman Sachs set a price target of $235 for EPAM, suggesting a potential increase of approximately 68.87% from its current price of $139.16.

Despite this optimistic outlook, EPAM's stock has faced challenges. As highlighted by Seeking Alpha, the stock experienced a significant decline, dropping 18.4% by 10 a.m. ET on a Thursday. This drop occurred even though EPAM surpassed expectations in both sales and earnings for Q4 2025. Analysts had expected earnings of $3.16 per share on sales just under $1.4 billion, but EPAM reported $3.26 per share on sales slightly over $1.4 billion.

The company's Q4 2025 performance showed a 13% increase in sales and a 15% rise in non-GAAP earnings. However, GAAP earnings were only $1.98 per share, 39% less than non-GAAP earnings, representing a 10% year-over-year increase. For the full year, EPAM's sales rose by 15% to $5.5 billion, with non-GAAP profits up by 6%, but GAAP profits fell by 14% to $6.72 per share.

EPAM's CEO, Balazs Fejes, emphasized the company's focus on "scaling and accelerating our AI-native revenues." This strategic direction aligns with the growing demand for AI enhancements in business systems. Despite the recent stock decline, some investors see this as a potential buying opportunity, given the company's strong performance and future prospects.

EPAM has projected its first-quarter results to align with market estimates, reflecting continued investment in AI by businesses. The stock, currently priced at $139.16, has fluctuated between a low of $129 and a high of $140.11 today. Over the past year, EPAM reached a high of $269 and a low of $129, with a market capitalization of approximately $7.69 billion and a trading volume of 5,417,531 shares.