The Zacks Computers – IT Services industry participants are suffering from challenging macroeconomic conditions that are elongating the sales cycle. The adoption of consultation and transaction processing solutions has been affected by an uncertain macro environment. However, industry participants like ServiceNow (NOW) , EPAM Systems (EPAM) and DXC Technology (DXC) have been benefiting from ongoing digitization efforts globally. Robust spending on cloud, Internet of Things (IoT), cyber security, data and an ...

New AI-powered solutions address generative AI, legacy modernization and data analytics to solve industry-specific challenges NEWTOWN, Pa., Jan. 15, 2025 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced it has expanded its strategic partnership with Google Cloud to deliver innovative industry solutions for clients across the media and entertainment, energy and retail verticals. The enhanced collaboration will leverage ...

In today’s digital transformation, companies all over the world grasp AI technology to improve their overall day-to-day operations. EPAM Systems (NYSE: EPAM ), as one of the leading IT companies offering AI and data driven transformational services inHi there! I am an equity research analyst by profession but a trader by heart, with a background in accounting. I try my best to be a responsible investor, guided by my expertise in fundamental and technical analysis. I enjoy surfing and riding the trends about ...

Company Recognition - EPAM Systems ranked 754 overall and in the Top 5 for IT Services and IT Consulting in the 2025 Excellence 1000 Index by Newsweek [1] - EPAM has been recognized as a "Most Loved Workplace" by Newsweek for the last four years and has received multiple awards for its ESG initiatives, including the 2024 Inclusive Excellence Award and the 2024 SEAL Sustainable Excellence Award [4] Industry and Market Position - EPAM is a leading global provider of digital engineering, cloud, and AI-enabled transformation services, serving clients across six continents [8] - The company is among the top 15 companies in Information Technology Services in the Fortune 1000 and is recognized as a leader in the IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services, and Worldwide Software Engineering Services [8] Strategic Growth and Innovation - EPAM has invested in innovation and future capabilities through acquisitions of First Derivative, Neoris, Odysseus Data Services, and Vates, enhancing AI, data-driven solutions, and cloud services [4] - The company focuses on delivering transformative solutions through its robust capabilities in digital, AI, GenAI, data, cloud, and engineering, aiming to solve clients' most challenging problems [2] Corporate Values and ESG Commitment - EPAM is committed to financial responsibility, stakeholder ratings, and social responsibility, as highlighted by its inclusion in the Excellence 1000 Index [1] - The company aligns with the UN's principles on human rights, labor, environment, and anti-corruption, as part of its Global Compact Status [5] Client and Employee Engagement - EPAM emphasizes employee and client satisfaction, with a focus on improving people's lives and delivering competitive advantages across diverse industries [7] - The company's Employee Rating and Customer Rating are key metrics in its evaluation, reflecting its commitment to ethical practices and high-quality services [5]

Strategic acquisition strengthens EPAM's financial services delivery capabilities in North America, Europe and APAC, enhancing end-to-end servicesNEWTOWN, Pa. and NEWRY, N. Ireland, Dec. 3, 2024 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced the successful completion of its acquisition of First Derivative, a Northern Ireland-headquartered managed services and consulting business for the capital markets industry with ...

Epam (EPAM) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual inves ...

Technical Analysis - EPAM has surpassed resistance at the 200-day moving average, indicating a long-term bullish trend [1] - The 200-day simple moving average is a key tool for determining long-term market trends and serves as a support or resistance level [1] Performance Metrics - EPAM has experienced a rally of 20.8% over the past four weeks, suggesting potential for further upward movement [2] - The company currently holds a Zacks Rank of 2 (Buy), indicating positive market sentiment [2] Earnings Estimates - There have been 4 positive earnings estimate revisions for the current fiscal year, with no downward revisions, strengthening the bullish outlook for EPAM [2] - The consensus earnings estimate for EPAM has also increased, further supporting the positive sentiment [2] Investment Consideration - Investors are encouraged to consider adding EPAM to their watchlist due to the significant technical indicators and favorable earnings estimate revisions [3]

Core Insights - EPAM Systems, Inc. has launched the StatGPT 2.0 Platform in collaboration with the International Monetary Fund (IMF) to enhance the evaluation and testing of statistical data and metadata [1][5][6] - The platform aims to improve data accessibility and user interaction in statistical data management, allowing users to engage with economic and financial data using natural language [5][7] Company Overview - EPAM Systems, Inc. is a leading digital transformation services and product engineering company, recognized for its software engineering expertise and AI-enabled transformation services [9][12] - The company has been acknowledged as a top workplace and is listed in the S&P 500 and Forbes Global 2000 [12] Product Development - StatGPT 2.0 is built on EPAM DIAL technology and was developed over six months in close collaboration with IMF experts [5][7] - The platform was evaluated using eight publicly available datasets and received positive feedback from over 100 representatives from SDMX sponsoring institutions and national statistical organizations [6][7] Industry Collaboration - The SDMX initiative, which supports the StatGPT platform, is backed by various international organizations including the IMF, World Bank, and European Central Bank [3][4] - The platform was first introduced as StatGPT 1.0 at the World SDMX Congress in October 2023 and has since been showcased at multiple international events [2]

Core Insights - EPAM Systems shares surged nearly 15% on Thursday, marking the top daily performance in the S&P 500 after the company reported third-quarter earnings that exceeded estimates and raised its full-year outlook [1][3] - Despite the recent gains, EPAM shares have lost more than 20% of their value since the beginning of the year [3] Financial Performance - EPAM reported third-quarter revenue of $1.17 billion, reflecting a year-over-year increase of 1.3% [2] - The earnings per share (EPS) for the quarter was $2.37, which is a 72-cent increase compared to the same period last year, surpassing analysts' expectations [2] - The company has revised its annual revenue forecast to a range of $4.69 billion to $4.7 billion, up from the previous estimate of $4.59 billion to $4.63 billion [2] Strategic Developments - The updated revenue forecast also accounts for the impact of recent acquisitions, including the purchase of NEORIS, a technology consulting firm based in Florida, which was completed on November 1 [3]

Financial Performance - For the first nine months of 2024, revenues were $3.480 billion, a decrease of 1.5% from $3.533 billion in the same period of 2023[131] - Income from operations as a percentage of revenues increased to 11.7% for the nine months ended September 30, 2024, compared to 10.7% for the same period in 2023[131] - During the three months ended September 30, 2024, total revenues increased by 1.3% to $1.168 billion compared to the same period in 2023[138] - The company reported a net income of $136.346 million for the three months ended September 30, 2024, representing 11.7% of revenues, compared to $97.204 million or 8.4% in the same period of 2023[137] - Revenues for the three months ended September 30, 2024, were $1,167.5 million, a 1.5% increase from $1,152.1 million in the same period of 2023[139] Tax and Incentives - The effective tax rate for the three months ended September 30, 2024, was 28.1%, compared to 26.3% for the same period in 2023[137] - The effective tax rate was 28.1% for Q3 2024, up from 26.3% in Q3 2023, influenced by government incentives and non-deductible acquisition costs[153] - The company recognized a $52.0 million benefit for government incentives related to R&D activities in Poland during Q3 2024, contributing to the decrease in cost of revenues[144] Revenue by Region - Revenues in the United States increased by 2.2% to $666.9 million from $652.8 million in Q3 2023, with a nine-month total of $1.997 billion compared to $1.982 billion in the prior year[140] - In the EMEA region, revenues decreased due to reduced spending at large accounts, with the UK, Switzerland, and Germany generating $126.0 million, $104.3 million, and $53.6 million respectively in Q3 2024[141] - North America segment revenues increased by $19.8 million, or 2.9%, to $704.6 million for the three months ended September 30, 2024, compared to the same period last year[156] - Europe's segment revenues decreased by $2.9 million, or 0.6%, to $462.9 million for the three months ended September 30, 2024, with a constant currency decline of 1.6%[160] Segment Performance - Total segment revenues for the company were $1.17 billion for the three months ended September 30, 2024, compared to $1.15 billion in the same period last year[156] - Total segment operating profit increased by $54.0 million, or 27.5%, to $250.4 million for the three months ended September 30, 2024[156] - North America segment's operating profit margin increased to 22.1% for the three months ended September 30, 2024, from 19.3% in the same period of 2023[157] - Europe's segment revenues accounted for 39.6% of total segment revenues for the three months ended September 30, 2024, down from 40.4% in the same period of 2023[160] Expense Management - Cost of revenues (exclusive of depreciation and amortization) was $764.0 million in Q3 2024, down 3.8% from $794.3 million in Q3 2023, with a percentage of revenues decreasing from 68.9% to 65.4%[144] - Selling, general and administrative expenses were $206.8 million in Q3 2024, a 6.2% increase from $194.8 million in Q3 2023, primarily due to increased professional fees and compensation costs[147] - Depreciation and amortization expense decreased to $19.7 million in Q3 2024 from $23.1 million in Q3 2023, representing 1.7% of revenues compared to 2.0% in the prior year[148] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, amounted to $2.036 billion, with an additional $675.0 million available under the revolving credit facility[166] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $428.9 million, an increase from $391.3 million in the same period of 2023[167] - Cash used in financing activities included $385.0 million for share repurchases during the first nine months of 2024, compared to $128.4 million in the corresponding period of 2023[171] - The company expects existing cash and cash equivalents, along with projected cash flow from operations, to meet operating and capital expenditure requirements for at least the next twelve months[172] Business Segments and Growth - Life Sciences & Healthcare in North America grew by 10.6% for the three months ended September 30, 2024, driven by increased demand from pharmaceutical and medical device companies[159] - Emerging verticals in the North America segment grew by 15.5% and 21.5% during the three and nine months ended September 30, 2024, respectively, driven by demand from various industries[159] - Financial Services revenues increased by 9.8% to $125.3 million for the three months ended September 30, 2024, driven by improved demand from insurance and wealth management clients[162] - Software & Hi-Tech revenues grew by 25.0% to $46.9 million for the three months ended September 30, 2024, attributed to expanded services for a top-10 client[162] - Life Sciences & Healthcare revenues surged by 43.1% to $21.7 million for the three months ended September 30, 2024, mainly from growth in the pharmaceutical and healthcare sectors[162] Challenges and Declines - The company faced increased expenses due to business continuity plans and relocation costs related to the ongoing conflict in Ukraine[129] - Consumer Goods, Retail & Travel revenues declined by 2.4% to $143.3 million for the three months ended September 30, 2024, primarily due to decreased demand from retail clients[162] - Business Information & Media revenues fell by 33.8% to $52.3 million for the three months ended September 30, 2024, due to decreased demand from two top-10 clients[162] - Europe's segment revenues for the nine months ended September 30, 2024, were $1.37 billion, a decrease of $70.8 million, or 4.9%, while operating profit increased by 11.2% to $209.9 million[161] Strategic Decisions - The company completed the sale of its remaining holdings in Russia on July 26, 2023, resulting in no further operations associated with the Russia segment[154]