Analyst Ratings February 24, 2026

Jefferies: IT services help-wanted ads fall for majority of tracked firms in January

Job listings drop at five of nine monitored IT services companies as EPAM contends with weak stock despite beat on Q4 results

By Sofia Navarro EPAM CTSH G GLOB IT
Jefferies: IT services help-wanted ads fall for majority of tracked firms in January
EPAM CTSH G GLOB IT

Jefferies reported that IT services job listings fell month-over-month in January for five of the nine companies it monitors. EPAM Systems, Cognizant and Genpact registered the steepest declines. While EPAM posted stronger-than-expected fourth-quarter results, its shares traded near a 52-week low and slid sharply in the prior week.

Key Points

  • Jefferies found month-over-month declines in IT services job listings at five of nine monitored companies in January, indicating softer hiring activity across parts of the sector.
  • EPAM, Cognizant and Genpact recorded the largest monthly falls in postings at 14%, 8% and 8%, respectively, while Accenture, CGI and ExlService posted modest increases and Unisys rose by 7%.
  • Jefferies' Job Listings Industry Index fell last month but stayed above its 2023 lows; the firm notes listings trends are directionally aligned with organic revenue growth for most companies but cannot precisely predict revenue magnitude from listings alone.

Jefferies' monitoring of IT services hiring activity showed a mixed picture in January, with job postings declining month-over-month at the majority of firms it covers. Of the nine companies tracked in the report, five recorded decreases in advertised IT roles.


Largest decreases and notable moves

EPAM Systems (NYSE:EPAM) led the declines, with job listings down 14% month-over-month. Cognizant Technology Solutions (NASDAQ:CTSH) and Genpact (NYSE:G) each saw postings fall by 8% versus the prior month. Globant (NYSE:GLOB) and Gartner (NYSE:IT) also reported declines of 5% and 4%, respectively.

Not all companies in Jefferies' sample moved lower. Accenture (NYSE:ACN) posted a 2% increase in job listings, CGI Group saw a 1% rise, and ExlService Holdings (NASDAQ:EXLS) recorded a 4% gain. Unisys (NYSE:UIS) reported the largest month-over-month increase in the sample, with listings up 7%.


EPAM context

The job listings decline at EPAM comes at a time when the stock was trading close to its 52-week low of $128.78 and had fallen about 20% over the previous week. Separately, EPAM reported fourth-quarter 2025 results that exceeded expectations: earnings per share of $3.26 compared with a $3.15 forecast, and revenue of $1.41 billion versus an expected $1.39 billion. Jefferies' report noted that analysts had revised earnings estimates upward recently for EPAM, although concerns about the company's future growth were also highlighted and the stock's pre-market trading reflected those concerns.


Industry index and Jefferies' caveats

Jefferies' Job Listings Industry Index, which weights listings by company size, declined in January but remained above the lows recorded in 2023. The firm emphasized that job listings growth is generally directionally consistent with organic revenue growth for most companies in the sample. However, Jefferies cautioned that the level of job postings is not a reliable predictor of the magnitude of revenue changes with high confidence.

Jefferies also warned that idiosyncratic factors at individual companies can produce a dislocation between revenue trends and job listings growth in any quarter, meaning that company-specific events may drive divergence between hiring activity and financial performance.


Market and analyst reaction

The report did not detail widespread analyst rating changes following the companies' results. For EPAM specifically, the firm noted that several analysts had revised earnings estimates upward recently, but it said that rating updates from analyst firms had not yet been observed after the fourth-quarter results.

Risks

  • Job listings are not a precise predictor of revenue magnitude - Jefferies warns that listings growth aligns directionally with organic revenue for most firms but lacks sufficient predictive power to determine the size of revenue changes. This uncertainty affects revenue forecasting in the IT services sector.
  • Idiosyncratic company factors can create divergence between hiring activity and revenue trends - firm-specific events may cause temporary dislocations that complicate analysis of sector-wide hiring signals.
  • Market sentiment may remain volatile despite positive quarterly results - EPAM beat Q4 expectations on both EPS and revenue yet traded near a 52-week low and experienced a sharp weekly decline, illustrating potential investor concern about future growth in the tech and IT services markets.

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