EPAM Systems, Inc. (NYSE:EPAM) is one of the most undervalued AI stocks to buy now.
View from Truist analysts remains mixed on EPAM Systems, Inc. (NYSE:EPAM), despite its strong fourth-quarter results, in which both revenue and operating income surpassed analyst expectations.
On the positive side, Truist remains confident in the company’s revenue momentum, which it believes should help EPAM Systems, Inc. (NYSE:EPAM) achieve its $600 million revenue target for 2026.
However, the firm remains cautious as it currently believes EPAM Systems, Inc. (NYSE:EPAM) is in a transitional phase and has yet to accelerate its AI engagement sufficiently to earn a more constructive outlook.
Accordingly, on February 20, 2026, the investment bank reduced its price target on EPAM Systems, Inc. (NYSE:EPAM) from $220 to $146 and reiterated a ‘Hold’ rating.
The company’s fourth-quarter and full-year results were released just a day earlier, where EPAM Systems, Inc. (NYSE:EPAM) posted revenue of $1.41 billion, a 12.80% year-over-year increase. For the quarter, diluted non-GAAP EPS came out at $3.26 per share, marking a 14.80% YoY growth. The company holds $1.30 billion in cash and cash equivalents as of December 31, 2025. For full-year 2026, management projects year-over-year revenue growth between 4.5%-7.5%. The quarterly performance was led by the company’s accelerating AI-native revenue, driven by steady execution and continued investment in AI innovation, according to Fejes, CEO and President of EPAM. He stated:
“By continuing to invest in AI innovation, talent development and strategic partnerships, we are driving our own transformation, building on top of our core engineering DNA and strengthening our strategic positioning to win in the AI-native build era.”
EPAM Systems, Inc. (NYSE:EPAM) provides digital engineering, cloud, and AI-enabled transformation services by combining software engineering with customer experience design, business advisory, strategy, and technology innovation services. The company’s focus remains on areas such as cloud platforms, cybersecurity, and AI.
While we acknowledge the potential of EPAM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EPAM and that has 100x upside potential, check out our report about this cheapest AI stock.
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