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Epam Systems Inc (EPAM)
NYSE:EPAM
Earnings Data
Report Date
Apr 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
2.75Last Year’s EPS
2.41Same Quarter Last Year
Moderate Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a majority of positive operational and financial signals: solid Q4 outperformance, strong cash generation, accelerating AI‑native revenues with a stated target to scale AI-native services to >$600M in 2026, meaningful industry recognitions, and continued share repurchases. Headwinds were highlighted but largely tactical or transitional: modest gross margin pressure from higher variable comp, temporary utilization impacts due to pyramid re-shaping and vacations, a concentration-related decline from a Neoris client that drags ~1 percentage point off 2026 organic growth, and longer sales cycles associated with larger AI programs. Management provided constructive 2026 guidance that targets margin improvement and continued investment in AI and go-to-market, while acknowledging near-term shape risk (Q1) and a conservative view on visibility. On balance, the positive catalysts (AI momentum, cash flow, partnerships, awards, revenue growth and clear guidance) outweigh the contained operational challenges and client-specific headwinds.Company Guidance
Q4 Revenue Outperformance
Q4 2025 revenues exceeded $1,400,000,000, up 12.8% year-over-year on a reported basis and up 5.6% on an organic constant currency basis, beating the high end of Q4 revenue outlook.
Full-Year 2025 Revenue Growth
Full-year 2025 revenues were $5,460,000,000, a 15.4% increase on a reported basis and a 4.9% increase on an organic constant currency basis.
Strong AI-Native Momentum
Q4 AI-native revenues exceeded $105,000,000 (pure AI-native definitions only). Management expects AI-native revenues to scale to in excess of $600,000,000 in 2026; hundreds of AI-native projects were active in Q4 with 60%–70% expanding from PoC to larger programs.
Improving EPS and Profitability Metrics (Non-GAAP)
Q4 non-GAAP diluted EPS was $3.26, up $0.42 or 14.8% year-over-year. Full-year 2025 non-GAAP EPS was $11.50, up 5.9% versus 2024. Q4 non-GAAP income from operations was $230,000,000 (16.3% of revenue).
Strong Cash Generation and Balance Sheet
Q4 cash flow from operations was $283,000,000 (vs. $130,000,000 in Q4 2024) and Q4 free cash flow was $268,000,000 (vs. $115,000,000). Full-year 2025 free cash flow was $613,000,000 with adjusted net income conversion of 94.7%. Ending cash was approximately $1,300,000,000.
Active Capital Return
Share repurchases in Q4 were ~1,200,000 shares for $224,000,000 at an average price of $192.33. Full-year 2025 repurchases were ~3,500,000 shares for $661,000,000 at an average price of $186.67; management expects continued repurchases in 2026.
Geographic and Vertical Strength
EMEA delivered strong growth: +21.8% reported and +11.7% organic. Americas (58% of Q4 revenue) grew +7.6% reported and +2.2% organic. Five of six industry verticals grew year-over-year: Financial Services (+19.8% reported, 5% organic), Software & High-Tech (+18.1%), Consumer/Retail/Travel (+10.9%).
Industry Recognition & Strategic Partnerships
Multiple awards and recognitions in 2025 (Microsoft Innovate with Azure AI Platform Partner of the Year, AWS Global Innovation Partner of the Year, Gartner/Forrester/IDC leadership placements). New strategic partnership with Coursera and Google Cloud marketplace agent launches validate positioning in AI and talent enablement.
2026 Guidance with Positive Margin Targets
Full-year 2026 guidance: revenue growth of 4.5%–7.5% (organic constant currency 3%–6%), GAAP operating margin 10%–11%, non-GAAP operating margin 15%–16%, GAAP EPS $7.95–$8.25, non-GAAP EPS $12.60–$12.90 — management expects gross margin improvement in 2026.
Headcount and Talent Investment
Q4 technical headcount exceeded 56,600 consultants/designers/engineers (total headcount >62,850), with ~500 delivery professionals added in Q4 and a deliberate onboarding of junior talent to improve pyramid/seniority over 2026.
EPAM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
EPAM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 19, 2026 | $167.69 | $139.16 | -17.01% |
Nov 06, 2025 | $160.91 | $168.00 | +4.41% |
Aug 07, 2025 | $151.31 | $157.74 | +4.25% |
May 08, 2025 | $159.21 | $179.71 | +12.88% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Epam Systems Inc (EPAM) report earnings?
Epam Systems Inc (EPAM) is schdueled to report earning on Apr 30, 2026, Before Open (Confirmed).
What is Epam Systems Inc (EPAM) earnings time?
Epam Systems Inc (EPAM) earnings time is at Apr 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is EPAM EPS forecast?
EPAM EPS forecast for the fiscal quarter 2026 (Q1) is 2.75.
