We came across one bullish thesis at EPAM Systems, Inc. on investing with the Common Sense substack. In this article, we will summarize the bulls’ thesis about EPAM. The action of EPAM Systems, Inc. it was trading at $218.04 on January 27. EPAM’s trailing and forward P/E were 33.65 and 18.98, respectively, according to Yahoo Finance.

EPAM Systems, Inc. provides digital platform engineering and software development services worldwide. EPAM Systems delivered a strong 3Q 2025 that confirmed not only a recovery in demand but a clear acceleration, prompting a positive market reaction with shares rising over 5%. Revenue reached $1.39 billion, up 19.4% from a year earlier, supported by acquisitions but, more importantly, organic growth of 7.1% in constant currency, accelerating from 5.3% in the second quarter and marking the fourth consecutive quarter of organic improvement.

This momentum reflects a broad pick-up in customer spending and validates management’s view that demand is returning with greater strength and durability. Financial services and emerging verticals led growth due to the continued impact of the First Derivative and NEORIS acquisitions, while core segments such as software and high-tech, health and consumer remained strong, albeit more moderate.

Margins were down year-over-year, with non-GAAP gross margin of 31% and adjusted operating margin of 16%, but this was largely driven by temporary and non-recurring factors, including an unfavorable comparison to prior-year Polish R&D tax credits, higher performance-linked bonus accruals and the margin-dilutive impact of recent acquisitions. Importantly, adjusted operating margin improved sequentially, highlighting a renewed focus on efficiency under new CEO Balazs Fejes. Adjusted EPS of $3.08 was down slightly year over year but beat expectations, bolstering confidence in underlying earnings power.

Management raised full-year 2025 guidance for revenue, organic growth, margins and EPS, indicating confidence that the third quarter was not a one-off. The earnings call further strengthened the investment case, highlighting EPAM’s success in scaling AI projects from pilots to production programs, winning share from underperforming competitors and generating record operating and free cash flow. This cash strength underpins a new $1 billion buyback program and supports optimism for accelerated growth in 2026, positioning EPAM for a significant revaluation as demand normalizes.

Previously, we covered a bullish thesis at Magnus Ofstad’s Cognizant Technology Solutions Corporation (CTSH) in May 2025, which highlighted the company’s AI-led productivity strategy and expanding generative AI capabilities. CTSH’s stock price has appreciated approximately 8.94% since our coverage. Investing with Common Sense shares a similar perspective, but emphasizes accelerating demand recovery, normalizing margins, and executing large-scale AI in EPAM.