#United States #AI Transformation #EPAM Systems #Newtown, PA #Q1 2026 Earnings

EPAM Systems Reports Strong Q1 2026 Results

On May 7, 2026, EPAM Systems, Inc. (NYSE: EPAM), a global leader in digital and AI transformation, announced its financial results for the first quarter ending March 31, 2026. The company reported revenues of $1.400 billion, showcasing a year-over-year growth of 7.6%, driven by robust demand for its services.

Financial Performance Highlights

Revenue Growth

EPAM's financial performance for Q1 2026 reflects a significant increase in revenues, rising by $98.4 million compared to the first quarter of 2025. This growth is highlighted by the following metrics:

• - GAAP Income from Operations: Reached $116.8 million, sending an upward trajectory of 17.6% from $99.3 million in Q1 2025.
• - Non-GAAP Income from Operations: Improved to $200.7 million, which is a notable increase of 14.2% year-over-year compared to $175.8 million.

Earnings Per Share (EPS)

Earnings per share on a GAAP basis stood at $1.52, reflecting an 18.8% increase from the prior year's figure of $1.28. Meanwhile, non-GAAP diluted EPS reached $2.86, marking an increase of 18.7% from $2.41.

Cash Flow and Share Repurchase Program

The operative cash flow saw a negative shift, costing the company $36.4 million, a stark contrast to a positive cash flow of $24.2 million recorded in the same period last year. In an initiative to return capital to shareholders, EPAM spent $324 million on stock repurchases during the quarter, a figure bolstered by a $300 million accelerated share repurchase agreement.

Workforce Metrics

As of March 31, the company employed approximately 62,750 individuals, with a slight decrease of 0.2% in delivery professionals from year-end 2025. This strategic workforce management underscores EPAM's adaptable operational framework.

2026 Full-Year and Q2 Guidance

Looking ahead, EPAM has updated its growth projections for the rest of the year. The company expects revenue growth to be between 4.0% and 6.5%, with an organic constant currency growth rate between 2.5% and 5.0%. For the full year, EPAM anticipates GAAP diluted EPS to fall between $8.29 and $8.59 and non-GAAP diluted EPS between $12.98 and $13.28.

Specifics for Q2 2026

For the upcoming second quarter, revenue estimates are projected to range between $1.400 billion and $1.415 billion, equating to a year-over-year growth of approximately 4.0% at the midpoint. The GAAP income from operations is expected to represent 9% to 10% of revenues during Q2.

Conclusion

EPAM Systems’ Q1 results illustrate a commendable performance amidst an evolving economic landscape. With the ramp-up in artificial intelligence projects and a commitment to shareholder returns, the company is poised for sustainable growth. Balazs Fejes, CEO and President of EPAM, emphasized the company’s strategic positioning to leverage opportunities in AI as it continues its multi-year transformation journey. Investors and stakeholders are encouraged to participate in the upcoming conference call on May 7, 2026, at 8:00 a.m. ET, where management will delve deeper into these results and future directions.