EPAM jumps 20.6% after quarterly results beat estimates

What happened

EPAM rose 20.6% on November 5, 2026, after its quarterly results beat estimates, lifting the stock after the close. The company reported third-quarter 2026 revenue of $1.426 billion and non-GAAP earnings per share of $3.51 versus a Zacks consensus of $3.41, according to Seeking Alpha and Zacks Investment Research. Trading was heavy: volume ran 3.3 times its 20-day average and the stock opened 13.7% above the previous close that session.

How big was the move

The one-day rise was 5.9 times a typical daily move for this stock and 27.7 percentage points better than the Technology sector median on the day, when the sector median fell 7.1%. The S&P 500 fell 4.4% on the day and fell 4.7% over five sessions, while EPAM rose 23.0% over the last five sessions. Market value stood at $7.25 billion.

The technical picture

The stock traded 25.8% above its 20-day moving average and 37.0% above its 50-day moving average, with the 50-day average above the 200-day average, a sign of an established uptrend. It had been above its 200-day average for 14 consecutive trading days. The 14-day Relative Strength Index stood at 78, above 70, a level often called overbought. Over one month the stock rose 53.0% and over three months it rose 70.1%, though it remained 25.5% below the 52-week high.

Fundamentals and valuation

For the four quarters through September 30, 2026, the company reported revenue of $5.65 billion, which grew 6.6% from a year earlier, and diluted earnings per share of $8.00, which rose 22.1% from a year earlier. Gross margin was 29.3% versus 28.3% a year earlier, and operating margin was 10.6% versus 9.8% a year earlier. Free-cash-flow margin was 8.3% and return on invested capital was 11.1%. On the balance sheet EPAM held net cash of $818.8 million and the share count over one year decreased by 7.8%.

On valuation metrics the stock traded at 20.7 times trailing earnings and 12.6 times expected forward earnings, with a free-cash-flow yield of 6.5%. The price to trailing earnings was lower than 81% of its own readings over the past five years, where the five-year median was 27.4 times earnings. PromtFinance scored Value at 95 (Exceptional) and Growth at 19 (Very weak), with Momentum 68 (Positive) and Stability 68 (Positive).

Earnings and analyst expectations

EPAM reported GAAP diluted EPS of $2.53 for the quarter, up $0.62 or 32.5% year-over-year, and non-GAAP EPS of $3.51, 2.9% above estimates, according to Seeking Alpha and Zacks Investment Research. Third-quarter revenue was $1.426 billion, up 2.3% year-over-year and up 2.5% on an organic constant currency basis. GAAP operating margin improved to 12.3% of revenues and non-GAAP operating margin improved to 16.7%.

The company has beaten estimates for 15 consecutive quarters, with an average surprise over the last four reports of 4.3% above estimates. The typical two-day reaction after recent reports was a fall of 0.7%. Analysts covering the stock numbered 37, with a consensus rating of Buy and 59% of ratings at Buy or Strong Buy. The consensus price target was $119.00, which was 28.2% below the closing price on November 5, 2026. The next scheduled report is February 18, 2027.

What to watch

• Next report: February 18, 2027
• Trailing four-quarter revenue: $5.65 billion (four quarters through September 30, 2026)
• Non-GAAP EPS on November 5, 2026: $3.51 versus Zacks consensus of $3.41
• Market value: $7.25 billion
• Price to trailing earnings: 20.7 times trailing earnings