EPAMNEUTRAL

Gross Margin

27.7%

Updated 316h ago

Sector Performance

22th percentile

EPAM

27.7%

Sector Median

44.7%

Sector Avg

45.2%

📊

Deep Analysis

EPAM's gross margin of 27.7% measures the percentage of revenue left after deducting the direct costs of delivering its services—a lower figure means less cushion for operating expenses.

This margin sits well below the sector median of 43.9%, placing EPAM at the 23rd percentile among its peers, indicating weaker profitability relative to the industry. The metric's trend over the past eight quarters is stable, with a year-over-year change not available and a quarter-over-quarter increase of 8.2% from 25.6% to 27.7%. A low gross margin combined with a stable trend suggests a consistent, narrow profitability buffer, which adds to investment risk if costs rise or pricing power weakens, though the recent QoQ uptick offers a slight positive. This metric supports the overall NEUTRAL verdict: the low level and average stability do not signal either a compelling opportunity or a clear danger, keeping the stock in a balanced assessment zone.

Frequently Asked Questions

What does the Gross Margin tell investors about EPAM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are EPAM's closest peers by Gross Margin?

The closest peers by Gross Margin include: EXPD (14.0%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.