Why EPAM Systems Stock Just Crashed

EPAM’s sell-off today looks like a buying opportunity.

IT consultant EPAM Systems (EPAM 17.01%) stock tumbled 18.4% through 10 a.m. ET Thursday despite beating on both sales and earnings this morning.

Heading into the company’s Q4 earnings report, analysts expected EPAM to earn $3.16 per share on sales just under $1.4 billion. EPAM actually earned $3.26 per share, and on sales just over $1.4 billion.

Image source: Getty Images.

EPAM Q4 earnings

Earnings may not have been quite as good they seem, however. While sales surged 13% for EPAM in Q4, and the company “beat” on its pro forma profits number (non-GAAP earnings were up 15%), actual earnings calculated under generally accepted accounting principles (GAAP) were only $1.98 per share.

That’s 39% less than non-GAAP earnings and only a 10% increase year over year.

For the full year, EPAM reported 15% sales growth to $5.5 billion, non-GAAP profits up only 6%, and GAAP profits down 14% at $6.72 per share.

EPAM Systems Stock Quote

Today’s Change

(-17.01%) $-28.53

Current Price

$139.16

Is EPAM stock a buy?

EPAM CEO Balazs Fejes says EPAM is “scaling and accelerating our AI-native revenues” (that’s right, EPAM says it’s an artificial intelligence stock), and the revenue growth bears that out. Still, the weak GAAP profit performance in Q4 and the year-over-year decline in profits are concerning.

The good news is that, when turning to guidance, EPAM suggested profits will soon improve. In 2026, the company is looking for sales growth to slow to about 6%, but for earnings to surge ahead to about $8.10 per share — 20% better than last year, and three times the rate of sales growth.

With EPAM stock trading for just over $136 today, that works out to a price-to-earnings ratio of only 16.8x on a stock growing earnings at 20%. Today’s sell-off just might be a buying opportunity for EPAM investors.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EPAM Systems. The Motley Fool has a disclosure policy.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Microsoft or Alphabet: Which Stock Is More Likely to Be a Millionaire Maker?

One of these companies’ services appears to be losing relevance. The other seems to be gaining it. There’s no doubt that both Microsoft (MSFT 0.09%) and Alphabet (GOOG 0.18%) (GOOGL 0.20%) have turned plenty of investors into millionaires. But, for anyone that doesn’t own either one yet, which is the more likely stock to do

2 AI Stocks to Buy Before They Soar 37% and 108%, According to Wall Street Analysts

Artificial intelligence (AI) stocks have been big winners on the stock market in recent years, which isn’t surprising, as the fast-growing adoption of this technology has accelerated the growth of several companies. The good news is that AI adoption isn’t going to slow down anytime soon. According to one estimate, the global AI market could

Why Lemonade Stock Jumped and Crashed Today

Shares of Lemonade (NYSE: LMND) started Thursday’s trading on a sweet note, opening the day 13.9% above Wednesday’s closing price. But the buzz didn’t last long. 90 minutes later, Lemonade was down 6.8% instead. As of this writing at 12:35 p.m. ET, the stock had settled at a 5.5% price drop. The chief reason for

Exploring 3 High Growth Tech Stocks In The US Market

As the U.S. stock market kicks off February with a robust performance, highlighted by significant gains in major indices such as the Dow Jones Industrial Average and S&P 500, investors are closely watching the tech sector for potential high-growth opportunities. In this dynamic environment, identifying promising tech stocks involves considering factors like innovation, market demand,

Friday Could Be a Big Day for Markets

This Friday could see some significant movement in U.S. financial markets. That’s because on Friday morning, Feb. 20, at 8:30 a.m. ET, the Bureau of Economic Analysis (BEA) will publish the Fed’s preferred measure of inflation, the Personal Consumption Expenditure Price Index. It’s a data point well worth monitoring, because the Federal Reserve will be

The Smartest Growth Stock to Buy With $1,000 Right Now

Meta Platforms is still one of the market’s best growth plays. As the S&P 500 hovers near its all-time high, it might seem like a precarious time to invest in high-growth stocks. However, there’s one growth stock which I think is still worth buying in this frothy market: Meta Platforms (META +0.24%). Let’s see how

Why Coeur Mining Stock Popped Again Today

Coeur Mining (NYSE: CDE) stock jumped 7.7% through 11:15 a.m. ET Thursday after beating on Q4 earnings last night. Heading into the report, analysts forecast earnings of $0.32 per share on $617.1 million in sales. The gold mining company actually earned $0.34 per share and reported sales of $678.8 million. Where to invest $1,000 right

6 Top Investing Lessons From Stock-Market Pros

There are some investing tips that you hear over and over, but are light on specifics. Diversify your portfolio. Don’t let emotion — whether it be fear or greed — guide your decisions. Invest early and often to take advantage of compounding. But a new book of interviews with top investors from around the world

1 Top Oil Stock to Buy and Hold Through the End of the Decade

Oil continues to play a fundamental role in the global energy picture, and that’s unlikely to change anytime soon. For instance, British oil major BP estimates that global oil demand will now grow through 2030 due to relaxed efforts to curb carbon emissions. The Trump administration has famously supported domestic energy, and this should continue

Exploring 3 High Growth Tech Stocks in the US Market

As February begins, the U.S. stock market has shown strength with major indices like the Dow Jones and S&P 500 posting significant gains, signaling a positive start to the month despite ongoing economic uncertainties and geopolitical developments. In this environment, high-growth tech stocks in the U.S. market continue to attract attention for their potential to

Walmart shares fall 3% as cautious outlook overshadows solid quarterly results

Walmart shares fall 3% as cautious outlook overshadows solid quarterly results Proactive uses images sourced from Shutterstock Walmart Inc (NYSE:WMT, XETRA:WMT) shares fell more than 3% in premarket trading on Thursday after the world’s largest retailer issued a cautious annual outlook that disappointed Wall Street, despite posting solid fourth-quarter results in new chief executive John

Can Rivian Stock Beat the Market in 2026?​

Rivian will remain volatile, but a successful R2 launch could give shares a boost. In 2025, Rivian Automotive (RIVN 1.91%) stock spent most of the year rising and falling, sometimes beating the S&P 500 and sometimes falling below, before the stock eventually ended the year up 48% compared to the market’s 16% return. Here’s why

Bear Market Sell-Off: Is PayPal Stock a Buy After Its 20% Plunge?

Investors in this digital payments enterprise have been waiting years for things to turn around. Just when investors thought that things couldn’t get any worse, the market surprised them. PayPal (PYPL +1.56%), once a booming player in the digital payments space, is crashing again. After it reported fourth-quarter 2025 financial results, the share price immediately

Investors: History Has Fantastic News About the Future of the Stock Market

The stock market has been on an unstoppable run lately, with the S&P 500 (^GSPC +0.56%) soaring by nearly 74% in the last five years, as of this writing. However, many investors are feeling nervous about what lies ahead for the market. This is a valid concern, given that multiple stock market metrics are sounding

The Best Warren Buffett Stocks to Buy With $2,000 Right Now

On Dec. 31, 2025, Warren Buffett stepped down as CEO of Berkshire Hathaway. For 60 years, the legendary investor ran the company, turning it from a floundering textile mill into one of the world’s largest conglomerates. Buffett is no longer at the helm, but Berkshire remains largely unchanged. Buffett’s successors continue to employ his time-tested

Hiab publishes its 2025 annual report and financial statements

Hiab Corporation HIAB CORPORATION, STOCK EXCHANGE RELEASE, 19 FEBRUARY 2026 AT 8:00 AM (EET) Hiab publishes its 2025 annual report and financial statementsHiab Corporation’s 2025 annual report and financial statements for the financial year 1 January–31 December 2025 have been published in English and Finnish. The report consists of the annual review, financial review, corporate

3 Asian Stocks Estimated To Be Trading Below Intrinsic Value In February 2026

As global markets grapple with AI disruption concerns and shifting economic indicators, the Asian stock markets present a unique landscape of opportunities. In this environment, identifying stocks that are trading below their intrinsic value can be particularly appealing to investors seeking potential growth amid broader market volatility. Name Current Price Fair Value (Est) Discount (Est)

Why Ferroglobe Stock Was a Winner on Wednesday

It isn’t easy to cope with alleged dumping on a company’s key markets. Numerous investors considered specialty metals and alloys company Ferroglobe (NASDAQ: GSM) a special stock on Wednesday. Following the release of its latest earnings report, an obviously pleased market snapped up the company’s shares to power them to a more than 4% gain

0
Would love your thoughts, please comment.x
()
x