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NEWTOWN, Pa. - EPAM Systems, Inc. (NYSE: EPAM), a global provider of digital transformation services with a market capitalization of $8.79 billion and annual revenue of $4.73 billion, announced today the expansion of its strategic collaboration with Amazon Web Services (AWS) to advance generative artificial intelligence (GenAI) solutions. This initiative aims to help enterprises migrate workloads to AWS more efficiently and modernize applications by leveraging advanced AI services. According to InvestingPro data, EPAM maintains strong financial health with a solid balance sheet, holding more cash than debt and a healthy current ratio of 2.96.
The partnership, which began in 2023, focuses on integrating EPAM’s AI/Run™ platform with AWS’s Amazon Bedrock service. This collaboration allows customers to create specialized AI agents for automating complex workflows, including application assessment, cloud-native transformation, and replatforming scenarios, ultimately reducing manual efforts and accelerating project timelines. For investors seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional ProTips and a detailed Pro Research Report, providing valuable information about EPAM’s business model and growth prospects.
Elaina Shekhter, SVP, Chief Marketing & Strategy Officer at EPAM, expressed gratitude for AWS’s recognition of EPAM’s GenAI capabilities. Chris Sullivan, VP of Partner Management, Americas at AWS, highlighted the importance of the partnership in helping enterprises realize the value of AI agents and GenAI for business transformation.
The expanded agreement will enable EPAM to continue refining AI-powered modernization tools, facilitating the transition of organizational infrastructures and data onto AWS. This is expected to assist enterprises in becoming more cloud-native and scaling their applications from proof-of-concepts to fully operational AI-enabled solutions. With a gross profit margin of 30.73% and trading at a P/E ratio of 20.13, EPAM demonstrates solid operational efficiency despite recent market challenges, including a 31.64% year-to-date stock price decline.
EPAM’s global team, comprising over 15,000 AWS-experienced engineers across more than 55 countries, is equipped to provide comprehensive digital transformation services. Brian Lloyd-Newberry, AVP Architecture at Cox Automotive, testified to the success of the EPAM-AWS collaboration, which has resulted in innovative AI projects that enhance efficiency and quality in automotive services.
The partnership is part of EPAM’s broader strategy to leverage AI and GenAI in delivering transformative solutions that enhance its clients’ competitive edge and foster continuous innovation. The company’s commitment to integrating advanced AI technologies into business strategies is evident through platforms like EPAM AI/RUN™ and initiatives like DIALX Lab.
For more information on the collaboration and its potential to drive cloud-based business outcomes, interested parties can visit EPAM’s official website. This news is based on a press release statement.
In other recent news, EPAM Systems reported robust fourth-quarter earnings, surpassing analyst expectations. The company achieved adjusted earnings per share of $2.84, exceeding the forecast of $2.75, with revenue reaching $1.25 billion against the anticipated $1.21 billion. Despite this strong performance, EPAM’s guidance for the first quarter of 2025 indicated earnings per share below analyst estimates, although revenue projections were slightly higher than expected. Mizuho Securities adjusted its price target for EPAM Systems to $267 from $282, maintaining an Outperform rating, highlighting the company’s successful navigation through challenging market conditions and its strategic acquisitions. Meanwhile, Guggenheim reduced its price target to $210 from $285 but retained a Buy rating, citing optimism among EPAM’s clients and potential for organic revenue growth in 2025. Piper Sandler downgraded EPAM from Overweight to Neutral, setting a new price target of $170, due to concerns over demand and potential revenue growth challenges. These developments reflect a mixed but cautiously optimistic outlook from analysts regarding EPAM Systems’ future performance amid a complex economic environment.
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