EPAM Systems, Inc. Earnings Recaps
Q2 2026
Aug 11, 2026
EPAM’s shares dropped 11.3% as investors reacted negatively to noticeable deceleration and weakness in the North American business, as well as pressure from margin headwinds and cautious outlook commentary.
Key takeaways
- Revenue grew 4.5% year-over-year on a reported basis, with organic constant currency growth of 3.4%, but growth was uneven across verticals and regions.
- Four of six verticals recorded growth, led by Financial Services and Life Sciences & Healthcare; however, Software & Hi-Tech and Business Information & Media declined, with the latter impacted by project completions.
- Americas region showed significantly lower growth compared to strong double-digit expansion in EMEA.
- Management highlighted ongoing “growth gaps” in key parts of the North American business, signaling execution challenges despite strategic investments.
- EPAM is investing heavily in AI-related capabilities and commercial transformation, but these forward-looking efforts have yet to offset near-term deceleration and cautious client budget sentiments amid geopolitical uncertainty.
Q1 2026
May 9, 2026
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.
Key takeaways
- 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.
Q3 2025
Nov 6, 2025
EPAM's Q3 2025 results exceeded expectations, showcasing robust revenue growth driven by strong demand for AI-native services and a diversified client base.
Key takeaways
- Achieved 7.1% organic constant currency revenue growth year-over-year, marking the fourth consecutive quarter of positive growth.
- Five out of six business verticals reported year-over-year growth, with notable contributions from financial services and software & hi-tech sectors.
- All three geographic regions demonstrated strong performance, underscoring EPAM's increasing global presence.
- Over 90% of EPAM employees have completed mandatory AI literacy training, bolstering the company's internal capabilities for AI-driven projects.
- Continued client engagement in AI initiatives positions EPAM favorably amidst a rising tide of demand for advanced technology solutions.