Shares of EPAM Systems fell 3.7% in midday trading on Friday, extending losses after JPMorgan downgraded the stock and adjusted its outlook following the company’s guidance reduction and commercial reorganization in North America.
JPMorgan downgraded EPAM from overweight to neutral while setting a price target of $120, citing delays in translating its North American restructuring into revenue growth and margin improvements. Guggenheim similarly reduced its price target from $165 to $140 but maintained a buy rating, while William Blair had previously downgraded the stock to market perform after EPAM trimmed its full-year outlook.
The company’s second-quarter 2026 earnings report, released in early August, included a downward revision to its full-year revenue growth guidance to a range of 3.2%–4.2%. Analysts noted persistent pressure in North America, where EPAM has been navigating a commercial realignment that is expected to weigh on near-term performance. The stock remains well below its 52-week high of $222.53 and closer to recovery from its 52-week low of $73.06.
EPAM’s recent partnership with Google Cloud, announced the day prior, did not offset the broader investor skepticism. The tech sector’s mixed performance during the session further contributed to the decline, with the S&P 500 down 0.1%, the Dow Jones down 0.2%, and the Nasdaq down 0.3%.
