--- canonical_url: https://www.stockexpertai.com/earnings/epam last_updated: 2026-05-09T17:02:42.290Z --- # EPAM Systems, Inc. (EPAM) Q1 FY2027 Earnings Preview > This content was automatically generated with FMP live data + Q1 FY2026 earnings call transcript. Generated: 2026-05-09T17:02:41.851Z. Educational tool, not investment advice. --- ## Quick Summary | Field | Value | Source | |---|---|---| | Price | $99.23 (▼ -4.81%) | fmp:quote | | Market Cap | $5.2B | fmp:profile | | 52w range | $98.76 – $222.53 | fmp:quote | | Earnings | Thu 6 Aug | fmp:earnings-history | | EPS estimate | $3.12 (+13% YoY) | fmp:earnings-estimate | | Revenue estimate | $1.4B | fmp:earnings-estimate | | Beat streak | 8/4 | fmp:earnings-history | | Rating | A (overall 4/5) | fmp:ratings | | Analyst median target | $140 (+40.6% upside) | fmp:price-target-consensus | | MoonshotScore | 33/100 | derived | | Council | 5/6 bullish | derived | | Munger verdict | Undervalued | derived | ## EPAM Systems, Inc. — Q1 FY2027 Expectations Q1 consensus: revenue $1.4B^{[FMP est]}, EPS $3.12^{[FMP est]}. 8 consecutive quarters of beat^{[FMP earnings]}. ## Quick Take **Score:** A · **Stance:** BUY · **Council:** 5/6 · **Moonshot:** 33 = MoonshotScore 33^{[9-pillar formula]} + Council 5/6^{[6-lens rule]}. Form 4: 0 transactions^{[FMP Form 4]}. ## Watchlist (4 metrics) ### 1. Fy26 Revenue Guidance Revised EPAM is lowering its full year revenue growth outlook to a range of 4% to 6.5% due to higher energy prices and global economic uncertainty. > "At the same time, we are now expecting that higher energy prices and global economic uncertainty will have an impact on our revenue growth rate for the year. As a result, we are lowering our full year revenue growth outlook. Revenue growth will now be in the range of 4% to 6.5%." > — Jason Peterson, Chief Financial Officer, Expectation / Guide · Q1 FY2026 ### 2. Q2 Revenue Guidance EPAM expects revenue for Q2 2026 to be in the range of $1.4 billion to $1.415 billion, producing year-over-year growth of 4% at the midpoint of the range. > "We expect revenue to be in the range of $1.4 billion to $1.415 billion, producing year-over-year growth of 4% at the midpoint of the range." > — Jason Peterson, Chief Financial Officer, Expectation / Guide · Q1 FY2026 ### 3. Ai Native Revenue Growth EPAM's AI native revenues exceeded $125 million in Q1, marking the fifth consecutive quarter of double-digit sequential growth. > "AI native and AI foundational revenues continued to contribute to year-over-year growth with more than $125 million AI native revenues in the quarter. This is the fifth consecutive quarter of sequential double-digit growth." > — Jason Peterson, Chief Financial Officer, Investor Focus · Q1 FY2026 ### 4. Share Repurchases EPAM repurchased approximately 1.8 million shares in Q1 for $264 million at an average price of $143.84 per share, returning approximately $1.5 billion in cash to shareholders to date. > "Share repurchases in the first quarter were approximately 1.8 million shares for [ $264 million ] at an average price of $143.84 per share. To date, since the initiation of our share repurchase program, we've returned approximately $1.5 billion in cash to shareholders." > — Jason Peterson, Chief Financial Officer, Investor Focus · Q1 FY2026 ## MoonshotScore Pillars | Pillar | Score | Level | Evidence | |---|---|---|---| | Revenue Growth | 2.0 | weak | Q1 vs Q2: moderate growth (+3.4%) | | Gross Margin | 3.0 | weak | Q1: low margin (25.6%, capital-intensive or commodity) | | Operating Leverage | 1.0 | weak | op margin average (8.5%) | | Cash Runway | 3.0 | weak | FCF negative ($-0.1B, external financing needed) | | R&D Intensity | 3.0 | weak | low R&D investment (0.0%, weak innovation) | | Price Momentum | 4.0 | medium | RSI 17.6 oversold, 50d below | | News Sentiment | 7.0 | strong | majority buy (65%) | **Formula:** sum(pillar.score) / (count * 10) * 100. Each pillar deterministic from FMP. Source maps in pillar.formula. ## Council (7-Lens) | Name | Stance | Context | |---|---|---| | Ray Dalio | bull | macro · target upside +40.6% | | Ken Griffin | bear | flow · 50d MA below | | Jim Simons | bull | quant · RSI 18 | | Klarman | bull | value · target upside +40.6% | | Buffett | bull | quality · ROE score 4/5 | | Munger | bull | valuation · target upside +40.6% | **Formula:** Each lens uses deterministic rule on bundle data. Logged in member.contextTr. ## Munger Lens - **Verdict:** Undervalued - **Financial Health:** Strong - **Margin of Safety:** Strong - **Interest Coverage:** Adequate - **ROIC vs WACC:** Healthy **Formula:** verdict=upside>25?Undervalued:>0?Fairly Valued:Overvalued. Each lens deterministic from FMP ratings + priceTarget. ## Technical Levels - **RSI(14):** 17.6 — oversold (RSI 17.6) — tepki alımı potansiyeli - **50d MA:** $129 — hisse %23.4 altında — kısa vadeli direnç - **200d MA:** $164 — hisse %39.6 altında — uzun vadeli baskı - **Volume (10d):** +38% ## Past Performance (4 Quarters) | Quarter | EPS Actual | EPS Estimate | Result | Reaction | |---|---|---|---|---| | Q2 FY25 | $2.77 | $2.61 | BEAT | +0.2% | | Q3 FY25 | $3.08 | $3.03 | BEAT | +4.3% | | Q4 FY25 | $3.26 | $3.16 | BEAT | -0.2% | | Q1 FY26 | $2.86 | $2.75 | +4.0% EPS | -4.8% | Q1 (May 7, 2026): EPS $2.86 vs $2.75 est^[FMP], +4.0% beat. D+1 movement: -4.8%^{[FMP D+1]}. Decline despite beat — market reacted to guidance, not numbers. ## 3 Scenarios ### Scenario A · Beat **Q1 EPS > $3.12 + CapEx discipline** Threshold: EPS > $3.12^{[FMP est]}. Target: Break above median target $140^{[FMP target]}; high target $247^[FMP] upper bound. ### Scenario B · In-Line **EPS ≈ $3.12 + CapEx < $17.9M** Threshold: EPS ≈ $3.12^{[FMP est]}, Q1 CapEx < $17.9M^[FMP]. Target: Consolidation in the band between current $99^[FMP] and median $140^[FMP]. ### Scenario C · Miss **EPS < $3.03 or CapEx ≥ $17.9M** Threshold: EPS < $3.03^{[FMP est×0.97]}. Target: Current $99 below SMA200 $164^[FMP], if rejection continues, $140^[derived] support activates. ## Risk Notes ### Primary segment below threshold Q1: EPS $2.86 vs $2.75 beat^[FMP], stock -4.8% D+1^[FMP]. ### Backlog concentration No RPO/backlog concentration disclosed in Q1 earnings call. ### Insider trading Form 4 data is marked in the table — this page does not generate assumptions for this stock. | Executive | Action | Amount | Date | |---|---|---|---| **Net:** — (0 transactions · 0 sells · 0 buys) · Q1 FY26 ### CapEx shock Q1 CapEx $17.9M^{[FMP cashflow]}. Q1 op margin 8.5%^{[FMP op margin]} — this level in Q1 is sensitive to CapEx revision risk. ## Wall Street Consensus - **Median target:** $140 (+40.6% upside vs current $99) - **High / Low:** $247 / $110 - **Buy / Hold / Sell:** 13 / 7 / 0 - **Analyst count:** 9 (last quarter), 51 all-time ## Additional Transcript Insights ### 1. ai_native_revenue_growth **Claim:** EPAM's AI native revenues exceeded $125 million in Q1, marking the fifth consecutive quarter of double-digit sequential growth. **Evidence (transcript):** "AI native and AI foundational revenues continued to contribute to year-over-year growth with more than $125 million AI native revenues in the quarter. This is the fifth consecutive quarter of sequential double-digit growth." **Numbers:** $125 million ### 2. fy26_revenue_guidance_revised **Claim:** EPAM is lowering its full year revenue growth outlook to a range of 4% to 6.5% due to higher energy prices and global economic uncertainty. **Evidence (transcript):** "At the same time, we are now expecting that higher energy prices and global economic uncertainty will have an impact on our revenue growth rate for the year. As a result, we are lowering our full year revenue growth outlook. Revenue growth will now be in the range of 4% to 6.5%." **Numbers:** 4%, 6.5% ### 3. north_america_underperformance **Claim:** EPAM notes that underperformance in North America is contributing to lower visibility in the second half. **Evidence (transcript):** "We are particularly seeing underperformance in North America, and this is contributing to lower visibility in the second half." **Numbers:** — ### 4. ai_deal_pipeline **Claim:** EPAM is seeing an accelerating large-deal pipeline focused on AI-enabled vendor consolidations, which are larger than their historical norm and expected to scale over time. **Evidence (transcript):** "EPAM is seeing an oxalating large-deal pipeline focused on AI-enabled vendor consolidations, where EPAM has significant opportunity to gain market share. These multiyear deals are larger than our historical norm are expected to scale over time and include a range of commercial models." **Numbers:** — ### 5. q2_revenue_guidance **Claim:** EPAM expects revenue for Q2 2026 to be in the range of $1.4 billion to $1.415 billion, producing year-over-year growth of 4% at the midpoint of the range. **Evidence (transcript):** "We expect revenue to be in the range of $1.4 billion to $1.415 billion, producing year-over-year growth of 4% at the midpoint of the range." **Numbers:** $1.4 billion, $1.415 billion, 4% ### 6. share_repurchases **Claim:** EPAM repurchased approximately 1.8 million shares in Q1 for $264 million at an average price of $143.84 per share, returning approximately $1.5 billion in cash to shareholders to date. **Evidence (transcript):** "Share repurchases in the first quarter were approximately 1.8 million shares for [ $264 million ] at an average price of $143.84 per share. To date, since the initiation of our share repurchase program, we've returned approximately $1.5 billion in cash to shareholders." **Numbers:** 1.8 million, $264 million, $143.84, $1.5 billion --- *Data source: FMP (live query, 2026-05-09), Q1 FY2026 earnings call transcript (Translated to EN with Gemini 2.0 Flash). Educational tool, not investment advice.*