Epam Systems Q1 revenue slightly beats estimates, adjusted EPS up 19%

EPAM Systems

07/05/2026 11:10

Overview

Digital transformation services firm's Q1 revenue rose 7.6%, slightly beating analyst expectations

Adjusted EPS for Q1 increased 18.7%, beating analyst expectations

Company spent $324 mln on share repurchases, including $300 mln accelerated buyback

Outlook

EPAM expects Q2 revenue between $1.400 bln and $1.415 bln

Company sees full-year revenue growth of 4.0% to 6.5%

EPAM expects 2026 GAAP diluted EPS of $8.29 to $8.59

Result Drivers

AI INITIATIVES - Co said Q1 performance reflected steady execution and momentum in AI-native and AI foundational readiness initiatives

TRANSFORMATION STRATEGY - Management cited a multi-year transformation to position for AI growth opportunities and accelerate internal AI adoption

Company press release: ID:nPn7wC2wFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$1.40 bln
$1.39 bln (15 Analysts)
Q1 Adjusted EPS
Beat
$2.86
$2.75 (16 Analysts)
Q1 EPS
$1.52
Q1 Adjusted Income from Operations
Beat
$200.70 mln
$195.65 mln (14 Analysts)
Q1 Income from Operations
$116.80 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy"

Wall Street's median 12-month price target for Epam Systems Inc is $171.00, about 59.9% above its May 6 closing price of $106.97

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)