NEWTOWN, PA — EPAM Systems (NYSE: EPAM) raised its full-year revenue growth forecast after reporting higher first-quarter revenue and earnings driven by continued demand for artificial intelligence and digital transformation services.
The software engineering and IT services company reported first-quarter revenue of $1.4 billion, up 7.6% from a year earlier, while diluted earnings per share rose 18.8% to $1.52 on a GAAP basis.
EPAM increased its projected 2026 revenue growth range to between 4% and 6.5%, up from prior guidance, and now expects organic constant-currency revenue growth of 2.5% to 5%.
“We are pleased to report a strong first quarter and solid start of the year amidst a rapidly evolving macroeconomic landscape,” Balazs Fejes, chief executive officer and president of EPAM, said. “Our Q1 performance reflects steady execution and continued momentum across our AI-native and AI foundational readiness initiatives.”
Non-GAAP diluted earnings per share increased 18.7% year over year to $2.86, while non-GAAP operating income rose to $200.7 million from $175.8 million in the prior-year quarter.
GAAP operating margin reached 8.3% during the quarter, while non-GAAP operating margin was 14.3%.
Revenue growth on an organic constant-currency basis was 3.7%, according to the company.
EPAM spent $324 million on stock repurchases during the quarter, including $300 million tied to a previously announced accelerated share repurchase program. The company disclosed it received 1.8 million shares during the quarter and another 500,000 shares after settlement in April.
Cash, cash equivalents and restricted cash totaled $1.043 billion as of March 31, down nearly 20% from the end of 2025, while cash used in operating activities totaled $36.4 million during the quarter compared with positive operating cash flow a year earlier.
EPAM reported total headcount stood at approximately 62,750 employees at the end of March, including about 56,500 delivery professionals.
For the second quarter, the company projected revenue between $1.4 billion and $1.415 billion, representing approximately 4% year-over-year growth at the midpoint of guidance.
EPAM now expects full-year GAAP diluted earnings per share between $8.29 and $8.59, with non-GAAP diluted earnings projected between $12.98 and $13.28.
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