Shares of EPAM Systems fell 3.7% in midday trading on Tuesday as investor sentiment soured following a downgrade from JPMorgan and a reduction in the company’s full-year revenue outlook.
JPMorgan analysts downgraded EPAM from Overweight to Neutral and set a price target of $120, citing headwinds from the company’s ongoing commercial reorganization in North America. The move follows a broader caution among analysts after EPAM’s second-quarter 2026 earnings report in early August, which prompted further scrutiny of its near-term growth trajectory.
EPAM also revised its full-year revenue growth guidance to a range of 3.2% to 4.2%, down from prior expectations, and indicated only modest top-line expansion in the third quarter. The company has faced continued pressure in its North American operations and a challenging environment for digital IT services as it seeks to broaden its service offerings beyond core engineering capabilities.
William Blair downgraded the stock to Market Perform from Outperform, while Guggenheim trimmed its price target to $140 from $165 but maintained a Buy rating. The downgrades and target reductions underscore concerns over the pace of recovery in EPAM’s commercial strategy and revenue growth.
A partnership announcement with cloud security firm Wiz, now part of Google Cloud, was unveiled the prior day, offering a modest strategic positive. However, the news did little to offset the selling pressure on Tuesday.
The broader market was mixed during the session, with the S&P 500 down 0.1%, the Dow Jones down 0.2%, and the Nasdaq declining 0.3%.
