New York City-based Senvest Management significantly increased its stake in EPAM Systems during the third quarter, adding 524,798 shares and seeing the overall position value increase by approximately $67.6 million.
What Happened
Senvest Management reported a substantial increase in its holdings of EPAM Systems (EPAM +3.00%), according to a Securities and Exchange Commission (SEC) filing published November 14. The fund acquired an additional 524,798 shares during the third quarter, bringing its total to 968,404 shares with a quarter-end value of $146 million. The position now makes up 4.7% of Senvest’s U.S. equity AUM.
What Else to Know
Top holdings after the filing:
- NASDAQ: WIX: $442.1 million (14.2% of AUM)
- NASDAQ: TSEM: $405 million (13% of AUM)
- NYSE: EPAM: $146 million (4.7% of AUM)
- NYSE: PATH: $145.3 million (4.7% of AUM)
- NASDAQ: ILMN: $134 million (4.3% of AUM)
As of Tuesday, shares of EPAM Systems were priced at $210.83, down 15% over the past year and well underperforming the S&P 500, which is up 13% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.3 billion |
| Net income (TTM) | $371.6 million |
| Market capitalization | $11.7 billion |
| Price (as of Tuesday) | $210.83 |
Company Snapshot
- EPAM Systems provides digital platform engineering, software development, infrastructure management, and consulting services across various industries.
- The company serves global customers in financial services, travel and consumer, software and hi-tech, media, and healthcare sectors.
- Employs over 61,000 people worldwide, supporting large-scale digital transformation projects for enterprise clients.
EPAM Systems is a leading global provider of digital engineering and software development services focused on delivering complex technology solutions at scale. The company leverages a broad talent base and deep technical expertise to help clients modernize platforms, integrate systems, and drive digital transformation initiatives. Its diversified client base and strong presence in high-growth industries underpin its competitive positioning in the technology services market.
Foolish Take
Senvest’s bolstered conviction in EPAM Systems highlights a broader question: whether the recent selloff has overly discounted a business still delivering double-digit revenue growth and expanding its role in AI-driven digital transformation. Despite a multiyear downturn, EPAM’s fundamentals show a company stabilizing — and in some areas, accelerating — its operational momentum.
EPAM’s third-quarter results underscore that resilience. Revenue rose 19.4% year over year to $1.4 billion as demand strengthened across financial services, retail, and software. The company also continued to lean into shareholder returns, repurchasing $82.1 million in stock and authorizing an additional $1 billion buyback program. GAAP EPS fell to $1.91 as margin pressure persisted, but non-GAAP operating performance remained stable. Full-year guidance calls for 15% revenue growth at the midpoint, along with steady non-GAAP profitability.
Relative to Senvest’s larger positions in Wix and Tower Semiconductor, EPAM stands out as a recovery bet backed by improving fundamentals rather than a pure growth swing. For investors, the key takeaway is that EPAM is executing well in a challenging market while expanding its AI-native capabilities — offering potential upside if sentiment around IT services continues to normalize.
Glossary
13F reportable assets under management (AUM): The total value of U.S. securities a fund must disclose in quarterly SEC Form 13F filings.
Position: The amount of a particular security or asset held by an investor or fund.
Quarter-end: The last day of a fiscal quarter, used as a reference point for financial reporting.
Holding: An investment owned by an individual or institution, such as stocks or bonds.
TTM: The 12-month period ending with the most recent quarterly report.
Digital platform engineering: Designing and building complex software systems that support digital business operations and services.
Infrastructure management: The administration and maintenance of IT systems, networks, and services within an organization.
Consulting services: Professional advice provided to organizations to improve business performance, processes, or technology.
Client base: The group of customers or organizations that regularly use a company's products or services.
Competitive positioning: How a company differentiates itself and stands out among competitors in its industry.
