EPAM Systems, Inc. (NYSE:EPAM) reported first-quarter results on Thursday that came in ahead of analyst expectations, although the stock moved lower as investors evaluated the company’s outlook for the rest of the year.
Shares of the digital transformation and software engineering company fell 2.78% in premarket trading following the release.
Revenue and earnings top Wall Street forecasts
The company posted adjusted earnings of $2.86 per share, surpassing the analyst consensus estimate of $2.75 by $0.11.
Revenue for the quarter totaled $1.4 billion, slightly above expectations of $1.39 billion and marking a 7.6% increase from $1.302 billion recorded in the same period last year.
Company highlights AI momentum
“We are pleased to report a strong first quarter and solid start of the year amidst a rapidly evolving macroeconomic landscape,” said Balazs Fejes, CEO & President. “Our Q1 performance reflects steady execution and continued momentum across our AI-native and AI foundational readiness initiatives.”
For fiscal 2026, EPAM expects revenue growth between 4.0% and 6.5%, while projecting organic constant currency growth of 2.5% to 5.0%.
Full-year earnings outlook beats consensus
The company forecast full-year adjusted earnings per share in a range of $12.98 to $13.28. The midpoint of $13.13 stands above the analyst consensus estimate of $12.75 by $0.38.
For the second quarter, EPAM expects revenue between $1.400 billion and $1.415 billion, representing year-over-year growth of roughly 4.0% at the midpoint.
Adjusted earnings for the quarter are projected between $3.10 and $3.18 per share. The midpoint of $3.14 compares with an implied analyst consensus near $3.19 based on the company’s annual guidance.
Share repurchases remain active
During the quarter, EPAM returned $324 million to shareholders through stock buybacks, including a $300 million accelerated share repurchase program.
The company said its global workforce totaled approximately 62,750 employees as of March 31, 2026.
More about EPAM
EPAM Systems is a software engineering and digital transformation company that provides consulting, platform development, cloud services, and AI-focused solutions to enterprises worldwide. The company works across industries including financial services, healthcare, retail, and technology, helping organizations modernize digital operations and implement advanced software systems.