EPAM Systems Reports 7.6% Revenue Growth to $1.400 Billion in Q1 2026

EPAM Systems, Inc. reported a revenue increase of 7.6% for the first quarter of 2026, reaching $1.400 billion compared to $1.302 billion in the same period of 2025. The company's net income also rose to $82.5 million, or $1.52 per diluted share, up from $73.5 million, or $1.28 per diluted share, in the prior year. This growth in profitability was attributed to improved operational efficiency and a decrease in the cost of revenues as a percentage of total revenues, which fell from 73.1% to 72.3%. The company’s income from operations increased to $116.8 million, representing 8.3% of revenues, compared to 7.6% in the previous year.

In terms of operational metrics, EPAM's total current assets decreased to $2.357 billion as of March 31, 2026, down from $2.534 billion at the end of 2025. The company’s cash and cash equivalents also saw a decline, totaling $1.037 billion compared to $1.296 billion at the end of the previous year. Notably, the company’s long-term debt increased significantly to $165 million from $25 million, reflecting a strategic decision to leverage debt for operational flexibility. The total equity of EPAM decreased to $3.432 billion from $3.677 billion, primarily due to share repurchases and a decline in retained earnings.

Strategically, EPAM has continued to focus on enhancing its service offerings and expanding its market presence. The company has maintained its commitment to a $100 million humanitarian aid initiative for employees affected by the ongoing conflict in Ukraine, with $7.1 million remaining to be expensed under this commitment. Additionally, EPAM has been actively involved in cost optimization programs, which have included workforce reductions aimed at improving profitability. The company expects to complete these restructuring actions by mid-2026.

Geographically, EPAM's revenues from the Americas segment increased by 2.3% to $795.4 million, while the Europe segment saw a more substantial growth of 15.3%, reaching $604.7 million. The company reported that the United States remains its largest market, contributing $711.8 million in revenues, a 3.4% increase from the previous year. The growth in Europe was bolstered by favorable foreign exchange rates and increased spending from key clients in various sectors, including financial services and consumer goods.

Looking ahead, EPAM Systems anticipates continued revenue growth driven by increasing demand for its digital transformation services. The company remains focused on leveraging its expertise in AI and cloud technologies to enhance client offerings. However, management acknowledges that geopolitical tensions, particularly the ongoing situation in Ukraine, may pose risks to operational stability and financial performance in the near term.