EPAM Systems, Inc.EPAM
NYSE•Technology•Information Technology Services
EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. The company offers engineering services, including requirements analysis and platform selection, customization, cross-platform migration, implementation, and integration; cloud services for creating a roadmap to set and refine IT and business goals while identifying new and emerging opportunities leveraging cloud technologies; data, analytics and artificial intelligence; customer experience; marketing; and cybersecurity. It also offers operation solutions comprising integrated engineering practices and smart automation services. In addition, the company offers software product and platform development services, which comprise product research, customer experience design and prototyping, program management, component design and integration, full lifecycle software testing, product deployment and end-user customization, performance tuning, product support and maintenance, managed services, as well as cross-platform migration and modernizing legacy platforms. The company serves the financial services; consumer goods, retail and travel; software and Hi-tech; business information and media, life sciences and healthcare; and emerging verticals industries EPAM Systems, Inc. was founded in 1993 and is headquartered in Newtown, Pennsylvania.
EPAM Systems, Inc. (EPAM) reported trailing twelve months revenue of $5.56B as of March 2026, a 14.2% increase year-over-year. Quarterly revenue reached $1.40B, reflecting continued top-line momentum.
EPAM Systems, Inc. generated $386.72M in TTM net income, with quarterly EBITDA of $148.31M. The operating margin expanded from 7.6% to 8.3%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (8.3%) and net margin (5.9%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 5.6% a year ago, signaling stronger bottom-line efficiency.
EPAM trades at a P/E of 18.9x (in line with broad market averages) and a P/S of 1.3x. The price-to-book ratio of 2.1x reflects a moderate premium to book value.
The company reported negative free cash flow of $-54.22M, indicating cash consumption over the period. The balance sheet shows $4.70B in total assets with $165.00M in long-term debt against $3.43B in stockholders equity for a debt-to-equity ratio of 0.0, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are positive at ~10.4% on average, but show some variability — pricing power may be sensitive to market conditions.
ROE is positive at ~11.4% on average, adequate but below the threshold typically associated with wide moats.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~20.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
Operating margins declined 12.6% — watch for continued compression, which may signal competitive or cost pressure.
FCF/Net Income has dropped below 0.7x in 4 quarters — monitor for earnings quality deterioration.
Debt-to-equity has risen 599.0% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares decreased 6.6% — net buybacks are reducing shares outstanding and boosting per-share value.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation