Today's Trend
EPAM Systems, Inc. (NYSE: EPAM) shares have increased as activist investor Engine Capital urged the company to pursue share buybacks or consider a sale, potentially unlocking value after a steep decline attributed partly to concerns about artificial intelligence. The activist campaign is the clearest near-term catalyst, although its outcome remains uncertain.
- Activist pressure could support the stock. Engine Capital is pushing EPAM Systems to repurchase shares or explore strategic alternatives, including a sale. Buybacks could improve per-share results, while a sale process could create a takeover premium. EPAM Systems gains as activist Engine Capital pushes for buybacks, sales process
- Cloud-security partnership expands EPAM’s capabilities. EPAM joined the Wiz Partner Alliance to help clients identify and remediate cloud-security risks. The agreement may strengthen the company’s position in a growing cybersecurity services market, though near-term financial benefits were not disclosed. EPAM Joins Wiz Partner Alliance to Advance Cloud Security Remediation
- Estimate changes were mixed. Zacks Research raised its FY2026 EPS forecast modestly to $10.44 from $10.30, close to the broader consensus estimate of $10.48. However, the firm’s estimates for FY2027 and FY2028 were reduced to $10.96 and $11.82, respectively.
- Lower forward quarterly forecasts signal caution. Zacks cut estimates for Q4 2026 EPS to $2.81 from $2.91, Q1 2027 EPS to $2.38 from $2.45, Q4 2027 EPS to $2.97 from $3.00, Q1 2028 EPS to $2.81 from $2.89, and Q2 2028 EPS to $2.94 from $3.02. The reductions suggest analysts remain concerned about growth and the effect of AI-related disruption on demand for IT-services providers. Zacks Research Predicts Weaker Earnings for EPAM Systems