EPAM Systems (NYSE:EPAM) recently filed a preliminary proxy statement urging shareholders to vote against a proposal to amend voting requirements, reflecting ongoing investor activism. This move could have introduced uncertainty, contributing to the company's 3.63% stock decline over the past week. This decline occurs amid broader market pressures, where shares dropped due to tariff announcements affecting market sentiment, particularly impacting the tech sector, as seen with counterparts like Nvidia and AMD experiencing downturns. During this period, major indexes also fell for consecutive days, further compounding the challenges faced by EPAM.

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Over the past five years, EPAM Systems has delivered a 4.56% total return, reflecting a challenging period that included both opportunities and pressures. While EPAM's strategic focus on acquisitions such as NEORIS and First Derivative sought to expand global client relationships and market penetration, profitability faced headwinds from geopolitical risks and acquisition costs. The launch of the Empathy Lab in February 2025 and an expanded partnership with Google Cloud highlight the company's investment in AI-driven solutions, aiming to enhance digital transformation capabilities.

Despite these initiatives, and the completion of share buybacks amounting to US$113.08 million since August 2024, EPAM underperformed compared to the IT industry and broader market, which achieved higher returns over the past year. The earnings growth, although positive at 9%, has not surpassed market expectations, partly due to ongoing challenges in pricing and geopolitical factors impacting financial performance and revenue stability.

Get an in-depth perspective on EPAM Systems' performance by reading our balance sheet health report here.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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