EPAMBULLISH

EPAM Gross Margin Analysis

30.4%

Updated 413h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of each revenue dollar left after paying direct production costs, so 30.4% means EPAM keeps $0.304 for every $1 of sales before other expenses.

Sector Performance

22th percentile

EPAM

30.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

27.7%(Jul 2026)

↑ Improving

📊

Deep Analysis

Gross margin is the share of each revenue dollar left after paying direct production costs, so 30.4% means EPAM keeps $0.304 for every $1 of sales before other expenses.

That level sits far below the sector median of 46.4%, placing the company in the 23rd percentile among peers, meaning most competitors operate with a higher cushion. The year-over-year change is N/A, but the quarter-over-quarter change is +9.7%, and historical values show an improvement from 27.7% to 30.4% most recently. The low absolute level signals compressed pricing power or higher input costs, yet the sharp quarterly uptick suggests a recent efficiency gain or cost pass-through. This combination implies an opportunity if the upward path continues, though the gap to the sector median remains an investment risk. The +9.7% QoQ improvement directly supports the overall BULLISH verdict, even though the current margin itself is weak.

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: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.