TD Cowen Sees Recovery Potential in EPAM Systems, Inc.’s (EPAM) Fundamental Strengths

Core Insights - EPAM Systems, Inc. is recognized as one of the best technology stocks, with a Buy rating maintained by TD Cowen despite a lowered price target from $243 to $220, reflecting short-term client challenges [2][8] - The company reported strong performance in Q4 and full year 2025, driven by AI-related initiatives, with non-GAAP operating income increasing by 10.5% to $230 million and non-GAAP EPS rising by 14.8% to $3.26 [2] - Full-year revenues for 2025 reached $5.457 billion, a 15.4% increase, with non-GAAP operating income up 6.7% to $831.5 million and non-GAAP EPS at $11.50 [3] Financial Performance - Q4 revenues climbed to $1.408 billion, marking a 12.8% annual rise [2] - Operating cash flow totaled $654.9 million for 2025, supported by share repurchases of 3.54 million shares, leaving $776.5 million available under the program [3] - The company projects GAAP EPS of $7.95–$8.25 and Q1 GAAP EPS of $1.32–$1.40 for 2026, with sales growth anticipated at 4.5–7.5% for the entire year and 7% in Q1 [4] Company Overview - EPAM Systems, Inc. is a global IT services and consulting company specializing in software engineering, digital platform development, and technology solutions, serving clients across various industries [5]