EPAM Systems Beats EPS Forecast Despite Yearly Decline

EPAM Systems quarter earnings surpassed expectations, reporting $1.28 per share, although down from $1.97 last year. Revenue increased by 11.7% to $1.301 billion, indicating growth potential ahead.

Date: 08-05-2025

AI Rating: 7

EPAM Systems, Inc.'s recent earnings report reveals a mixed strong performance affecting investor sentiment. The company reported a net income of $73.48 million for the first quarter, down from $116.24 million a year ago, which shows a decline in profitability but beats expectations. Despite the lower EPS of $1.28 compared to $1.97 last year, adjusted earnings of $138.02 million or $2.41 per share exceeded analysts' forecasts, which anticipated $2.27 per share. This is a positive indicator for investors, as it reflects better-than-expected operational efficiency given the challenging market conditions.

Revenue Growth: Revenue saw a notable 11.7% increase, rising to $1.301 billion from $1.165 billion in the previous year. This growth signals strong demand for EPAM's services and positions the company favorably for future quarters.

Guidance: The forward-looking guidance provided by EPAM also enhances a positive outlook. The next quarter EPS guidance of $2.56 to $2.64 and a yearly EPS forecast between $10.70 and $10.95 suggest management is optimistic about sustaining and possibly improving performance. If achieved, this could lead to a reassessment by analysts and a potential increase in stock price.

Overall, EPAM’s ability to beat EPS estimates, coupled with robust revenue growth and optimistic guidance, provides a reason for cautious optimism in the short term for investors aiming for a holding period of 1 to 3 months.

Stocks: EPAM