EPAM's stock declined 7.2% after earnings as investors reacted negatively to cautious outlook commentary and evident deceleration in North American demand, signaling concerns about macro uncertainty and second-half visibility despite ongoing AI momentum.

• Q1 revenue increased 7.6% year-over-year, with constant currency organic growth of 3.7%.
• Five of six verticals showed growth, led by Financial Services and Software/Hi-Tech; EMAR region delivered strong double-digit growth.
• Pure AI revenues exceeded $125 million in Q1, up nearly 20% sequentially from Q4, reflecting ongoing AI-related momentum.
• Management highlighted increased macro uncertainty and reduced visibility in North America, with caution around discretionary spending likely to impact Q2 and beyond.
• Despite robust AI investments and certifications, potential margin or growth pressures loom due to the slowing North American environment and broader client hesitation.