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    EPAM Systems (EPAM) Is Down 10.3% After AI Partnership Expansion And Buyback Completion – Has The Bull Case Changed?

    Simply Wall St·05/11/2026 05:31:53
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    • In early May 2026, EPAM Systems reported Q1 2026 results showing higher revenue and earnings year over year, completed a US$547.49 million buyback covering 5.49% of shares, and issued Q2 and full-year 2026 guidance pointing to mid-single-digit revenue growth and stable GAAP operating margins.
    • At the same time, EPAM deepened its push into applied AI with a multi-year partnership with Anthropic and production-ready AI capabilities for ServiceNow, positioning its large, newly certified Claude-focused workforce to support clients moving AI initiatives from experimentation into live operations.
    • Now we’ll examine how EPAM’s expanded Anthropic partnership and AI-ready workforce reshape its investment narrative and long-term positioning.

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    EPAM Systems Investment Narrative Recap

    To own EPAM today, you need to believe that its push into AI-native services can offset slower discretionary IT spending and margin pressure. The latest Q1 beat, modest 2026 growth guidance and completion of a US$547.49 million buyback do not materially change the key near term catalyst, which is converting its AI pipeline into scaled, recurring work. The main risk remains weaker client budgets that could mute the impact of EPAM’s expanding AI offering.

    The most relevant recent development is EPAM’s deepened multi year partnership with Anthropic, including plans for over 10,000 Claude certified architects and production grade AI for platforms like ServiceNow. This ties directly into the AI adoption catalyst, giving EPAM a clearer story around applied AI delivery at scale just as clients are reassessing spend and vendor choices after the updated 2026 outlook.

    Yet even as EPAM leans into AI, investors should be aware that weaker discretionary client budgets could still...

    Read the full narrative on EPAM Systems (it's free!)

    EPAM Systems' narrative projects $6.7 billion revenue and $551.8 million earnings by 2029. This requires 6.9% yearly revenue growth and about a $174 million earnings increase from $377.7 million today.

    Uncover how EPAM Systems' forecasts yield a $187.24 fair value, a 89% upside to its current price.

    Exploring Other Perspectives

    EPAM 1-Year Stock Price Chart
    EPAM 1-Year Stock Price Chart

    Some of the most optimistic analysts were assuming roughly 9 percent annual revenue growth and earnings above US$640 million by 2029, so compared with the more cautious consensus and today’s softer guidance, their AI fueled margin expansion story looks far more ambitious and may need to be revisited in light of EPAM’s latest update.

    Explore 6 other fair value estimates on EPAM Systems - why the stock might be worth over 2x more than the current price!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    • A great starting point for your EPAM Systems research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free EPAM Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate EPAM Systems' overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.