Epam Systems (EPAM)
NYSE:EPAM
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Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
3.14Last Year’s EPS
2.77Same Quarter Last Year
Moderate Buy
Based on 12 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed meaningful operational and strategic positives — solid Q1 revenue growth at the high end of outlook, improving gross margins and operating profitability, strong and accelerating AI-native revenue momentum (> $125M in Q1, ~20% sequential growth), significant partnerships and upskilling progress, and an expanding pipeline of larger strategic AI deals. Offsetting these strengths were near-term execution and cash concerns: reduced full-year revenue growth guidance, negative operating/free cash flow in Q1, higher DSO, targeted headcount reductions, and uncertainty around timing and economics of large new AI-enabled deals (including evolving token/commercial models). Overall the company appears to be in a constructive transition toward AI-native services with improving profitability, but with notable short-term visibility and cash-flow headwinds tied to deal timing and macro caution.Company Guidance
Revenue Growth at High End of Outlook
Q1 revenue of $1.4 billion, up 7.6% year-over-year and up 3.7% on an organic constant-currency basis; company delivered revenue at the high end of its Q1 outlook.
Strong AI Momentum and Scale
Pure AI (AI-native) revenues exceeded $125 million in Q1, the fifth consecutive quarter of sequential double-digit growth and reported as nearly 20% sequential growth vs. Q4; management reiterated a $600 million full-year AI target.
Profitability and Margin Improvement
GAAP income from operations grew ~18% YoY; non-GAAP income from operations grew >14% YoY. GAAP gross margin improved to 27.7% (from 26.9% a year ago) and non-GAAP gross margin improved to 29.4% (from 28.7% a year ago). GAAP operating income was $117 million (8.3% of revenue) and non-GAAP operating income was $201 million (14.3% of revenue).
Earnings Per Share Growth
GAAP diluted EPS was $1.52, up 18.8% YoY; non-GAAP diluted EPS was $2.86, up 18.7% YoY.
Broad-Based Vertical and Geographic Strength
Five of six verticals grew YoY: Financial Services +11.5%, Software & Hi‑Tech +10.9%, Consumer Goods/Retail/Travel +7.2%, Life Sciences & Health Care +5.9%; EMEA grew 15.9% YoY (8.4% in constant currency). Americas (57% of revenue) grew 2.5% YoY.
Large Pipeline and New Deal Types
Management highlighted an expanding pipeline of large, multi‑year AI-enabled vendor consolidation and transformation deals (approaching ~10 opportunities) that are larger than historical norms and expected to scale over time.
Partnerships, Certifications and Talent Upskilling
Strategic applied AI partnership with Ontic and Anthropic services partnership; over 20,000 employees completed training, 1,300+ Claude certifications with 5,000 expected by end of Q3 and 10,000 by year-end; building a practice of >10,000 cloud‑certified architects and 250 forward-deployed engineering Black Belts.
Client Outcomes and Recognition
Multiple client case studies showing material outcomes: Nelnet PDLC program produced a 31% productivity increase and ~2x back-end dev acceleration; streaming client reached sustained 99% uptime and 70% less config drift; insurance client reduced time-to-process first order loss by 75%. Company received industry awards (Google Cloud Partner of the Year, Forrester, IDC Marketscape) and Glassdoor recognition.
Capital Return Progress
Share repurchases in Q1 of ~1.8 million shares for $264 million (avg. $143.84/share); ~$1.5 billion returned to shareholders to date; cash & cash equivalents remained just over $1 billion at quarter end.
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 |
|---|---|---|---|
May 07, 2026 | $106.97 | $104.24 | -2.55% |
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% |
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 (EPAM) report earnings?
Epam Systems (EPAM) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Epam Systems (EPAM) earnings time?
Epam Systems (EPAM) earnings time is at Jul 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 (Q2) is 3.14.
