Epam Systems Q2 profit beats on AI-native momentum

EPAM Systems

06/08/2026 11:25

Overview
Digital transformation services firm's Q2 revenue grew 4.5%, a slight beat of analyst expectations
Adjusted EPS for Q2 rose 22% to $3.38, beating analyst expectations
Company spent $85 mln on share repurchases in Q2

Outlook
EPAM expects Q3 revenue between $1.410 bln and $1.425 bln
Company sees full-year revenue growth of 3.2% to 4.2%
EPAM expects Q3 GAAP diluted EPS of $2.33 to $2.41 and non-GAAP EPS of $3.38 to $3.46

Result Drivers
AI-NATIVE MOMENTUM - Co said continued AI-native momentum contributed to better-than-expected Q2 results
PROFITABILITY IMPROVEMENT - Ongoing profitability improvement cited as a driver of Q2 performance, per CEO
STRATEGIC PARTNERSHIPS - Expansion of strategic partnerships and leveraging engineering expertise supported results, according to CEO

Company press release: ID:nPn5RzzmRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$1.42 bln
$1.41 bln (16 Analysts)
Q2 Adjusted EPS
Beat
$3.38
$3.14 (17 Analysts)
Q2 EPS
 
$1.97
 
Q2 Adjusted Income from Operations
Beat
$232.70 mln
$217.03 mln (15 Analysts)
Q2 Income from Operations
 
$152.20 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 11 "strong buy" or "buy", 9 "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 $128.00, about 16.5% above its August 5 closing price of $109.87
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Aug 5 - Information Services Group Q2 revenue beats estimates, driven by AI-centered research
Aug 4 - Hackett Group Q2 adjusted revenue misses estimates on business model transition
Aug 6 - Germany's GFT Technologies H1 revenue rises on AI demand, reiterates 2026 outlook

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(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.)