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EPAM SystemsEPAM -0.20%74 Gross Margin % is 27.71% as of Mar. 2026, which is 19% below its 10-year median of 34.38. GuruFocus rates EPAM with a GF Score™ of 74/100 and a GF Value™ of $258.23 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,688 Software companies, EPAM Systems ranks worse than 64.88% on this metric.
EPAM Systems Inc gross margin has been in long-term decline. The average rate of decline per year is -3.6%.
The historical rank and industry rank for EPAM Systems's Gross Margin % or its related term are showing as below:
EPAM'
s Gross Margin % Range Over the Past 10 Years
Min: 28.83 Med: 34.38 Max: 36.48
Current: 29.01
During the past 13 years, the highestGross Margin % of EPAM Systems was 36.48%. The lowest was 28.83%. And the median was 34.38%.
EPAM's Gross Margin % is ranked worse than 64.88% of 2688
companies
in the Software industry
Industry Median: 40.48
vs EPAM: 29.01
EPAM Systems had a gross margin of 27.71% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for EPAM Systems was -3.60% per year.
EPAM Systems (NYSE:EPAM) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
EPAM Systems had a gross margin of 27.71% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
EPAM Systems Gross Margin % Related Terms
EPAM Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for EPAM Systems's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Information Technology Services subindustry, EPAM Systems's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
EPAM Systems Gross Margin % vs Software Industry
For the Software industry and Technology sector, EPAM Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where EPAM Systems's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
EPAM Systems (EPAM) has a Gross Margin % of 27.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on EPAM Systems and its competitors. This is 19% below median its historical median of 34.38. Over the past decade, EPAM Systems' Gross Margin % has ranged from 28.83 to 36.48. According to the industry distribution chart, EPAM Systems ranks #1744 out of 2688 companies in the Software industry, placing it in the top 64.9%.
Is EPAM Systems' Gross Margin % too high?
EPAM Systems' current Gross Margin % of 27.71% is 19% below median its 10-year median of 34.38. Over the past 10 years, this metric has ranged from a low of 28.83 to a high of 36.48. The Software industry median Gross Margin % is 40.48. EPAM Systems' value of 27.71% is 31.5% below this industry median. Based on the distribution chart, EPAM Systems ranks #1744 out of 2688 companies in the Software industry, which is below the industry midpoint. Overall, EPAM Systems has a GF Score™ of 74/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does EPAM Systems' Gross Margin % compare to EXLS and SAIC?
According to the Software industry distribution chart, EPAM Systems ranks #1744 out of 2688 companies for Gross Margin %. This places EPAM Systems in the lower half of its industry. The industry median Gross Margin % is 40.48. EPAM Systems' value of 27.71% is 31.5% below this benchmark. Historically, EPAM Systems' own Gross Margin % has ranged from 28.83 to 36.48 over the past decade. While the company's 10-year median is 34.38 vs. the industry median of 40.48, EPAM Systems has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.48, based on 2,688 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. EPAM Systems's current Gross Margin % of 27.71% is 31.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on EPAM Systems and its competitors. For the Software industry, the median Gross Margin % is 40.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. EPAM Systems's current Gross Margin % is 27.71%, which is 19% below median its own 10-year median of 34.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is EPAM Systems stock overvalued right now?
Based on GuruFocus' analysis, EPAM Systems (EPAM) is currently considered Significantly Undervalued. The stock's GF Value™ is $258.23, compared to a current price of $89.22 — trading 65.4% below its estimated fair value. The current Gross Margin % is 27.71%, which is 19% below median its 10-year median of 34.38 and 31.5% below the Software industry median of 40.48. EPAM Systems' overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For EPAM Systems (EPAM), the current Gross Margin % is 27.71% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is EPAM Systems (EPAM) Overvalued in 2026?
Based on GuruFocus' analysis, EPAM Systems stock appears to be undervalued.
The current stock price of $89.22 is trading 65.4% below its estimated GF Value™ of $258.23.
GuruFocus considers EPAM Systems to be Significantly Undervalued.
Key valuation signals for EPAM:
Gross Margin %: 27.71% (19% below median its 10-year median of 34.38)
GF Value™: $258.23 vs. price of $89.22 (65.4% below fair value)
Industry Position: 31.5% below the Software median (#1744 of 2688)
No single metric tells the full story. See the EPAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
EPAM Systems is a global IT services firm with a focus on platform engineering, software development, and consulting services. The company used to host large engineer bases in Ukraine, Belarus, and Russia, but it now delivers from various locations across different continents. EPAM's largest market is North America, which represents approximately 60% of revenue.
74GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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