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]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |----------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------- ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $1.168 billion, a year-over-year increase of 1.3% on a reported basis or 0.9% in constant currency terms [26] - GAAP gross margin for Q3 was 34.6%, compared to 31.1% in Q3 2023, benefiting from a Polish R&D incentive [32] - Non-GAAP diluted EPS was $3.12, up from $2.73 in Q3 2023, reflecting a $0.39 increase year-over-year [34] - Free cash flow reached $237 million, the highest level in the company's history [35] Business Line Performance - Financial Services revenue increased 3.3% year-over-year, driven by demand from fintech, banking, and insurance sectors [29] - Life Sciences & Healthcare delivered strong year-over-year growth of 14.6%, driven by clients in life sciences, pharmaceuticals, and med-tech [29] - Consumer Goods, Retail, and Travel decreased 4.5% year-over-year, with declines in consumer products and retail partially offset by growth in travel [30] - Software and Hi-Tech grew 2.1% year-over-year, while Business Information and Media declined 9% [30] Market Performance - Americas, representing 60% of Q3 revenues, grew 2.9% year-over-year [30] - EMEA, representing 38% of Q3 revenues, contracted 0.3% year-over-year but showed signs of stabilization with sequential growth [30] - APAC increased 1.8% year-over-year and now represents 2% of revenues [30] Strategic Direction and Industry Competition - The acquisition of NEORIS provides entry into Latin America and parts of Europe, accelerates growth opportunities, and strengthens local and near-shore value propositions [7] - The company is focusing on Gen AI initiatives, with 70% of top 100 clients engaged in various Gen AI projects [20] - EPAM is expanding its global delivery hubs, including significant growth in India and Latin America, with plans to reach 10,000 employees in India by early 2025 [14][15] Management Commentary on Operating Environment and Future Outlook - Management noted a more positive demand sentiment compared to 90 days ago, with clients showing increased willingness to invest in technology-led optimization and transformation programs [10] - The company remains optimistic about certain sectors and expects a return to higher growth levels in the coming quarters, despite ongoing caution and delayed decision-making in some areas [11] - EPAM is strategically investing in capabilities to capture market share as global demand returns [11] Other Important Information - The company recognized a $52 million benefit from a Polish government incentive program, improving GAAP gross margin and IFO by 450 basis points [27] - EPAM expects further benefits from the Polish R&D incentive in Q4 2024 and beyond, with an estimated $9 million benefit in Q4 [28] - The company ended Q3 with 47,750 consultants, designers, engineers, and architects, a decline of 1.5% year-over-year but a sequential increase of 750 employees [36] Q&A Session Summary Question: What areas are leading the recovery in client behavior? - Financial Services, Hi-Tech, and Life Sciences & Healthcare are showing improvement, with clients beginning to recognize the need to invest again [44] Question: How will the Poland R&D incentive impact future margins and tax rates? - The $29 million benefit in Q3 and an expected $9 million in Q4 will positively impact gross margins, but wage inflation and pricing challenges may pressure profitability in 2025 [45][46] Question: What is the outlook for revenue per head and hiring in Europe? - The company expects headcount growth in Q4, with hiring broadening globally, including in Eastern Europe and Western Asia [49] Question: What is the organic growth profile of NEORIS and its client concentration? - NEORIS is expected to contribute $54 million in Q4, with CEMEX being a significant but not majority customer [82][83] Question: How is employee productivity in new regions like LatAm and India? - Productivity in LatAm is expected to be comparable to other regions, with further assessments to be made in the coming quarters [87] Question: What is the outlook for organic revenue growth in 2025? - The company expects to return to organic revenue growth in 2025, though the extent of growth will depend on demand conditions [80]

Epam (EPAM) came out with quarterly earnings of $3.12 per share, beating the Zacks Consensus Estimate of $2.70 per share. This compares to earnings of $2.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 15.56%. A quarter ago, it was expected that this information technology services provider would post earnings of $2.26 per share when it actually produced earnings of $2.45, delivering a surprise of 8.41%.Over the last four q ...