EPAM Systems fell 3.7% in mid-day trading after JPMorgan downgraded the stock to Neutral from Overweight, citing commercial reorganization in North America as a near-term drag on revenue growth and margins.
The analyst maintained a $120 price target, reflecting concerns that the reorganization will take time to yield returns amid a challenging environment for digital IT services. William Blair similarly downgraded EPAM to Market Perform, citing sustained pressure in North America, while Guggenheim reduced its price target to $140 from $165 but retained a Buy rating.
The downgrades followed EPAM’s second-quarter 2026 earnings report in early August, during which the company lowered its full-year revenue growth outlook to a range of 3.2%–4.2% and guided for only modest top-line expansion in the third quarter. The reduced guidance underscored broader challenges in the digital IT services sector, compounded by softer demand in North America.
A partnership with cloud security firm Wiz, announced the prior day and now part of Google Cloud, provided a modest strategic boost but failed to offset the selling pressure. The broader market also weighed on sentiment, with the S&P 500 down 0.1%, the Dow Jones down 0.2%, and the Nasdaq down 0.3% during the session.
EPAM’s stock has traded between a 52-week high of $222.53 and a low of $73.06.
