We recently published a list of 10 Mid-Cap IT Stocks Outperforming The Market In 2025. In this article, we are going to take a look at where EPAM Systems Inc. (NYSE:EPAM) stands against other mid-cap IT stocks outperforming the market in 2025.
US Stocks continue their recovery from a post-DeepSeek and post-tariffs period as nerves surrounding Donald Trump’s unpredictable policies calm down. The Nasdaq is surging 1.19% followed by the S&P 500 at 0.64%. The bullishness is expected to continue for the remainder of the day.
To determine which stocks could outperform the market in the coming months, it is essential to look at sectors that are benefitting from ongoing trends. IT stocks are unique in a way that with time, all companies have to spend more to keep their systems updated. Analysts expect companies to add 5% to their IT budgets in 2025. This, together with the increasing demand for AI products, will propel the sector’s returns in 2025.
Some companies have already started the year on a positive note. There are companies that are seeing increasing demand for their innovative products while others continue to serve the infrastructure involved in deploying these innovative solutions. Either way, it is important to look at what’s driving these stocks.
We decided to take a look at the top 10 mid-cap IT stocks that are outperforming the market in 2025. To come up with our list, we only considered stocks with a market cap of at least $10 billion with the highest return since the start of the year.
A close-up of a coder at a computer, coding away to bring the latest software service to life.
EPAM Systems Inc. (NYSE:EPAM)
EPAM Systems Inc. is a global software development and digital platform engineering services provider. It offers infrastructure management services, engineering services, smart automation services, technical advisory consulting services, and other services. The stock is up 11% this year on the back of strong earnings, improving financial strength, and collaborations.
The company comfortably beat analyst estimates by reporting an EPS of $3.12 against estimates of $2.7. Revenues also came in stronger than expected. Investors will be pleased to see the company register topline growth as the recent downturn in revenue was starting to worry them.
As a result of the impressive earnings, the company continues to see improving cash flows. During the first three quarters, the company already generated $429 in cash, significantly boosting its cash pile which stood at $2.04 billion. The improving cash flows set the company up for share buybacks as well as any acquisitions that it may deem fit for business growth.
Just last month, the company announced an expansion of its existing collaboration with Google Cloud. While this enhancement won’t impact the upcoming Q4 results on the 20th of February, it should help the company continue on its growth trajectory.
Overall, EPAM ranks 10th on our list of mid-cap IT stocks outperforming the market in 2025. While we acknowledge the potential of EPAM as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as EPAM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
