EPAM Systems Q4 Revenue Up 12.8% to $1.408B; Price Target Cut to $220
EPAM Systems reported Q4 revenue of $1.408 billion, up 12.8% year-on-year, non-GAAP operating income of $230 million up 10.5%, and full-year revenue of $5.457 billion, up 15.4%. TD Cowen maintained a Buy rating but cut its price target from $243 to $220 citing short-term client challenges.
1. Analyst Revises Price Target
TD Cowen maintained a Buy rating on the company but reduced its price target from $243 to $220, citing short-term client challenges despite strong fundamentals such as AI-driven demand, pricing power and margin expansion.
2. Q4 and Full-Year Financial Results
In Q4 2025, revenue reached $1.408 billion, a 12.8% increase year-on-year; non-GAAP operating income rose 10.5% to $230 million and non-GAAP EPS increased 14.8% to $3.26. Full-year revenue climbed 15.4% to $5.457 billion, with operating income up 6.7% to $831.5 million and EPS at $11.50.
3. Cash Flow and Capital Returns
Operating cash flow for 2025 totaled $654.9 million, supporting the repurchase of 3.54 million shares and leaving $776.5 million available under the current buyback program. The company ended the year with $1.301 billion in cash and investments and 62,850 employees.
4. 2026 Financial Outlook
The company projects 2026 GAAP EPS in the range of $7.95 to $8.25 and Q1 GAAP EPS of $1.32 to $1.40, with expected sales growth of 4.5% to 7.5% for the full year and approximately 7% in the first quarter.