EPAM Systems

Pricing is adequate but not exceptional for a services firm. EPAM can pass through mid-single-digit rate increases and sustain solid margins when demand is healthy, aided by scarce skills in data, cloud, and platform engineering.

GAAP operating margin was 9.5% in 2025 with 10% to 11% targeted for 2026, indicating some room for mix and utilization improvement. However, vendor consolidation pressure, large enterprise procurement, and AI-enabled alternatives cap pricing power. The 10-K cautions that wage inflation may not always be offset by pricing.

We score pricing power as slightly above average, with upside if AI-native offerings command premium rates at scale.