EPAM Systems revenue reaches $1.4B as AI transformation drives Q1 growth

EPAM Systems (NYSE:EPAM) reported a solid start to 2026, with financial results that reflect steady demand for its specialized AI and digital transformation services.

The Newtown-based engineering firm posted total revenue of $1.4 billion for the first quarter ended March 31, 2026, representing a 7.6% increase year-over-year.

On an organic constant currency basis, revenues grew 3.7% compared to the first quarter of 2025.

The company’s profitability metrics showed strong improvement, with both GAAP and non-GAAP diluted earnings per share (EPS) rising approximately 19% year-over-year.

GAAP diluted EPS stood at $1.52, while non-GAAP diluted EPS reached $2.86.

EPAM maintained disciplined operational execution, reporting a GAAP operating margin of 8.3% and a non-GAAP operating margin of 14.3%.

Financially, EPAM remains aggressive in returning value to shareholders.

During the first quarter, the company repurchased $324 million of its common stock, a total that includes the settlement of a previously announced $300 million accelerated share repurchase (ASR) agreement.

The company ended the quarter with a healthy liquidity position, reporting $1.043 billion in cash and cash equivalents.

Reflecting a "rapidly evolving macroeconomic landscape," EPAM updated its full-year 2026 financial outlook.

The company now expects year-over-year revenue growth to fall between 4% and 6.5%, with organic constant currency growth projected at 2.5% to 5.0%.

For the full year, EPAM expects GAAP diluted EPS to be in the range of $8.29 to $8.59, and non-GAAP diluted EPS to fall between $12.98 and $13.28.