EPAM · EPAM Systems, Inc.

EPAM Systems delivered a strong Q1 2026 with revenues of $1.400 billion, surpassing year-ago levels by 7.6% on a reported basis and 3.7% organically on a constant currency basis, driven by steady execution and momentum in AI-native and foundational readiness initiatives as noted by CEO Balazs Fejes. GAAP income from operations rose 17.6% to $116.8 million (8.3% margin), while non-GAAP operating income increased 14.2% to $200.7 million (14.3% margin), reflecting improved profitability amid cost discipline. Diluted EPS grew robustly, with GAAP at $1.52 (+18.8%) and non-GAAP at $2.86 (+18.7%). The company continued aggressive capital returns, repurchasing $324 million in shares including a $300 million accelerated share repurchase, settling for 2.3 million shares total, reducing shares outstanding to 52.757 million. Balance sheet shows $1.043 billion in cash, cash equivalents, and restricted cash, down from year-end due to buybacks and $36.4 million operating cash usage. Headcount stabilized at 62,750, with delivery professionals flat at 56,500. Guidance was raised for full-year revenue growth to 4.0%-6.5% (organic CC 2.5%-5.0%), with non-GAAP EPS now at $12.98-$13.28 on 52.7 million shares. Q2 outlook points to $1.400-$1.415 billion revenues and non-GAAP EPS of $3.10-$3.18, signaling confidence in sustained AI transformation demand despite macroeconomic challenges.