EPAM Systems, Inc. Q3 2026 Earnings Recap

EPAM shares jumped 20.6% after the company said Q3 revenue, profitability and EPS came in above the high end of its outlook range. Investors also got a higher 2026 AI-native revenue target and a capital-return plan, though overall revenue growth remained modest at 2.3% year over year.

Key Takeaways

• Q3 revenue rose 2.3% year over year on a reported basis; organic constant-currency growth was 2.5%, above the high end of the company’s outlook range.
• EPAM generated more than $185 million in AI-native revenue during the quarter, with sequential double-digit growth, and now expects at least $650 million in 2026, up from its original $600 million target.
• Financial services led growth, alongside life sciences and healthcare; EMEA grew mid-single digits, while the Americas was roughly flat year over year.
• Delivery headcount increased by nearly 700 in the quarter to more than 57,000, up 2.2% year over year. Management expects net delivery headcount to grow faster in Q4.
• The company aims to return at least half of free cash flow to shareholders over the next three years, starting with a new repurchase program that includes an accelerated share repurchase.