Newtown, Pennsylvania-based EPAM Systems, Inc. (EPAM) is a global digital engineering and IT consulting company that helps enterprises design, build, and modernize complex software and digital platforms. Valued at a market cap of $11.6 billion, the company specializes in software development, cloud transformation, data and analytics, AI-driven solutions, and product engineering, serving clients across industries such as financial services, healthcare, consumer goods, and technology. Companies worth $10 b ...

Summary of IT Services Industry Outlook and Key Insights Industry Overview - The IT Services industry is expected to see improved demand in 2026 as AI proof-of-concept projects transition to broader enterprise implementations, particularly benefiting consulting services [1][4] - Despite the anticipated improvements, the narrative surrounding AI disruption in IT Services is expected to persist, although it may diminish as the complexities of enterprise AI become more recognized [2][37] Key Insights Demand and Spending Trends - IT Services spending is projected to improve year-over-year for the first time in four years, shifting from infrastructure-focused spending to include applications and services [3][4] - Global IT spending is expected to reach $6.1 trillion in 2026, growing by 10% year-over-year [20] Business Model Evolution - Business models are evolving from time and materials to more outcome-based pricing, although this transition will not be universal due to varying complexities [5][62] - The shift towards outcome-based pricing is seen as a potential for higher margins, despite initial perceptions of deflationary pressures [62] Margins and Valuations - Margins are expected to be managed flat to slightly higher, but ongoing investments in AI may limit significant upside [5][84] - IT Services firms are currently experiencing depressed valuations, with multiples at historic lows, making it an attractive entry point for investors [6][34][92] Top Picks in IT Services - The top picks for large, mid, and small-cap companies within the IT Services sector are Cognizant (CTSH), EPAM Systems (EPAM), and Grid Dynamics (GDYN), respectively [1][15] - Cognizant is expected to see organic growth exit 2026 at a mid to high single-digit pace, while EPAM and GDYN are projected to improve their growth rates significantly [15][19] AI and Partnerships - Partnerships with IT Services firms are becoming increasingly vital for AI companies, as they often lack the sophistication to manage enterprise workflows independently [3][78] - The emergence of "killer use cases" in AI is anticipated to drive increased investment in growth-oriented initiatives, necessitating back-end modernization [4][59] Market Performance - The IT Services sector has underperformed the S&P 500 for four consecutive years, with a year-to-date decline of 26% [28][31] - Despite the underperformance, the sector is expected to outperform in 2026 as multiples re-rate higher due to improved growth prospects [6][34] Future Outlook - The complexity of enterprise AI is significantly underestimated, indicating a continued need for IT Services expertise as enterprises transform [10][44] - The overall sentiment suggests that while AI disruption fears remain, the reality of implementing enterprise AI will require specialized knowledge and support from IT Services firms [2][44] Conclusion The IT Services industry is poised for a recovery in 2026, driven by a shift in spending patterns and the maturation of AI applications. While challenges remain, particularly regarding valuations and the ongoing narrative of AI disruption, the sector presents potential investment opportunities, especially in firms that are adapting their business models and forming strategic partnerships.

Investors looking for stocks in the Computers - IT Services sector might want to consider either TD SYNNEX (SNX) or Epam (EPAM) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with pos ...

Core Viewpoint - Three stocks, Dollar General, Expedia Group, and EPAM Systems, have shown strong upward momentum and are considered promising investments heading into 2026 [1][2]. Group 1: Dollar General - Dollar General's share price increased over 32% in the past month, driven by strong fiscal third-quarter results [5][8]. - The company reported a 4.6% year-over-year sales increase to $10.6 billion and a 43.8% rise in earnings per share to $1.28, surpassing Wall Street's estimate of $0.93 [5][8]. - Gross profit margin improved by 107 basis points to 29.9%, indicating enhanced profitability [5]. - The company opened 196 new stores and remodeled 1,175 locations during the quarter [6]. - Management raised earnings per share guidance for 2025 to a range of $6.30 to $6.50, up from $5.80 to $6.30 [8]. Group 2: Expedia Group - Expedia Group's stock rose nearly 23% in the past month, fueled by robust third-quarter results and an increased full-year revenue forecast [10][11]. - Revenue for the quarter increased by 9% to $4.4 billion, while gross bookings surged by 12% to almost $31 billion [10]. - Management raised full-year revenue growth guidance to 6%-7%, up from 3%-5%, and gross bookings growth is now projected at 7% [10][11]. - The positive results are attributed to rising travel demand, the use of artificial intelligence, and improved cost control [11]. Group 3: EPAM Systems - EPAM Systems' stock has rebounded over 26% in the past month, following a strong third-quarter earnings report [12][13]. - Adjusted earnings per share increased by 14.3% year-over-year, and revenue grew by 1.7%, both exceeding Wall Street expectations [13]. - Management raised full-year revenue guidance to a range of $4.69 billion to $4.7 billion, up from $4.59 billion to $4.63 billion, and adjusted profit outlook to between $10.73 and $10.81, up from $10.20 to $10.40 [14].

EPAM’s latest results suggest its long slump may be out of sync with its fundamentals — here’s why a major hedge fund just doubled down.New York City-based Senvest Management significantly increased its stake in EPAM Systems during the third quarter, adding 524,798 shares and seeing the overall position value increase by approximately $67.6 million.What HappenedSenvest Management reported a substantial increase in its holdings of EPAM Systems (EPAM +3.00%), according to a Securities and Exchange Commission ...

Core Insights - EPAM Systems, Inc. has launched seven new AI agents on Google Cloud Marketplace, showcasing its commitment to innovation and collaboration with Google Cloud [2][3] - The AI agents are designed to provide production-ready solutions across various industries, including finance, healthcare, and retail, enhancing operational efficiency and customer experiences [1][3] Product Offerings - The initial offering includes: 1. Agentic Know Your Customer (KYC) - Automates KYC processes for financial services [5] 2. Streamlined Document Authoring - Accelerates the creation of clinical trial documents [5] 3. AI for Drug Discovery (Cloud Pipeline) - Speeds up drug discovery through workflow orchestration [5] 4. Agentic AI Query Optimization - Optimizes SQL queries to reduce execution time and costs [5] 5. Retail Media Orchestration Toolkit - Provides advanced media and data toolkit for retail [5] 6. Video Processing Suite - Converts unstructured video libraries into searchable assets [5] 7. Talk to Your Data - Enables natural language data analysis [5] Strategic Collaboration - The launch of these AI agents marks a significant advancement in EPAM's collaboration with Google Cloud, focusing on engineering, solutions, and go-to-market strategies [2][3] - EPAM's expertise in engineering has been pivotal in adopting Gemini Enterprise, ensuring the agents are built on robust and interoperable foundations [3] Market Position - EPAM Systems has established itself as a leading provider of digital engineering and AI-enabled transformation services, recognized for its innovative solutions and commitment to client success [6][9] - The company has been acknowledged in various industry rankings, including the S&P 500 and Forbes Global 2000, highlighting its strong market presence [9]

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook, considering projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score evaluates trends in stock prices and earnings estimates, aiding investors in timing their positions in high-momentum stocks [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with attractive value, growth forecasts, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.93% since 1988 [7][8] - There are over 800 top-rated stocks available, making selection challenging for investors [8] Stock Selection Strategy - Investors should prioritize stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [9] - Stocks with lower ranks but high Style Scores may still carry risks due to downward earnings forecasts [10] Company Spotlight: EPAM Systems, Inc. - EPAM Systems, Inc. is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B, indicating strong growth potential [11] - The company is forecasted to achieve year-over-year earnings growth of 4.7% for the current fiscal year, supported by upward revisions from analysts [12] - The Zacks Consensus Estimate for EPAM's earnings has increased by $0.27 to $11.37 per share, with an average earnings surprise of +4.4% [12]

Core Insights - EPAM Systems, Inc. has been awarded the 2025 AWS Global Innovation Partner of the Year Award, recognizing its role in driving innovation and building solutions on Amazon Web Services (AWS) [1][2][3] Company Achievements - The award highlights EPAM's commitment to delivering innovative consulting, professional, managed, and value-added services, showcasing outstanding customer experience throughout the service lifecycle [1][3][4] - EPAM's partnership with AWS emphasizes mutual dedication to client value and innovation across various industries, focusing on measurable business outcomes [3][4] Product Innovations - EPAM has co-developed several AI-enabled solutions with AWS, including the EPAM AI/RUN™ for AWS Migration and Modernization, which utilizes AI-driven insights to facilitate application migration and modernization [4][6] - The company integrates advanced AI technologies into tailored business strategies, enhancing competitive advantage for clients [7][8] Industry Recognition - EPAM is recognized as a leading global provider of digital engineering and transformation services, having been added to the S&P 500 and Forbes Global 2000 in 2021 [10] - The company has received accolades for its multidisciplinary teams and is ranked among the top 15 companies in Information Technology Services in the Fortune 1000 [10]

Core Viewpoint - The comparison between Epam (EPAM) and Infosys (INFY) indicates that EPAM currently offers better value for investors based on its stronger earnings estimate revisions and more attractive valuation metrics [1][3][7]. Valuation Metrics - EPAM has a forward P/E ratio of 16.34, while INFY has a forward P/E of 21.69, suggesting that EPAM is more undervalued [5]. - The PEG ratio for EPAM is 2.00, compared to INFY's PEG ratio of 2.86, indicating that EPAM has a better expected EPS growth rate relative to its valuation [5]. - EPAM's P/B ratio stands at 2.78, significantly lower than INFY's P/B of 6.13, further supporting EPAM's valuation attractiveness [6]. Analyst Outlook - EPAM holds a Zacks Rank of 2 (Buy), reflecting a more favorable earnings estimate revision trend compared to Infosys, which has a Zacks Rank of 3 (Hold) [3][7]. - The stronger estimate revision activity for EPAM suggests a more positive analyst outlook, making it a more appealing option for value investors [3][7].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying those that can fulfill their potential is challenging [1] Group 1: Company Overview - Epam (EPAM) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Historical EPS growth for Epam stands at 6.5%, but projected EPS growth is significantly higher at 28.2% for the current year, surpassing the industry average of 24% [4] Group 3: Asset Utilization - Epam's asset utilization ratio is 1.11, meaning it generates $1.11 in sales for every dollar of assets, which is more efficient than the industry average of 0.93 [5] Group 4: Sales Growth - The company's sales are expected to grow by 14.9% this year, compared to the industry average of 5.3%, indicating strong sales growth potential [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Epam have been revised upward, with the Zacks Consensus Estimate increasing by 3.6% over the past month, suggesting positive momentum [8] Group 6: Investment Positioning - Epam has achieved a Growth Score of B and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance in the growth stock category [10]