EPAM Systems Reports 6% Revenue Growth to $2.815 Billion in First Half of 2026

EPAM Systems, Inc. reported a revenue increase of 6.0% for the first half of 2026, reaching $2.815 billion compared to $2.655 billion in the same period of 2025. The company’s net income for the six months ended June 30, 2026, was $185.5 million, up from $161.5 million in the prior year, resulting in diluted earnings per share of $3.49, an increase from $2.84. The growth in revenue was attributed to improving demand for services and favorable foreign exchange fluctuations, which contributed approximately 2.5% to revenue growth.

In terms of operational performance, EPAM's income from operations as a percentage of revenues improved to 9.6% for the first half of 2026, compared to 8.5% in the same period of 2025. The company reported a decrease in the cost of revenues as a percentage of total revenues, which fell from 72.2% to 71.0%. This improvement was largely driven by cost optimization initiatives and a reduction in compensation expenses relative to revenues. The company also noted a significant increase in stock-based compensation expenses, which rose to $96.3 million for the first half of 2026 from $87.0 million in the previous year.

EPAM's strategic developments included the completion of its 2025 Cost Optimization Program, which aimed to enhance profitability through workforce reductions and operational streamlining. The company also continued its humanitarian commitment of $100 million to support employees affected by the ongoing conflict in Ukraine, with $4.6 million remaining to be expensed as of June 30, 2026. The company’s employee headcount was impacted by these restructuring efforts, although specific figures were not disclosed.

Geographically, EPAM's revenues from the Americas segment were $1.588 billion for the first half of 2026, a slight increase from $1.565 billion in the prior year. The Europe segment saw a more substantial growth, with revenues rising to $1.227 billion from $1.091 billion, reflecting a 12.5% increase. The company reported that the United States remained its largest client location, contributing $1.427 billion in revenue for the first half of 2026, up from $1.398 billion in the same period of 2025.

Looking ahead, EPAM Systems expressed optimism about future growth, driven by ongoing demand for digital transformation services and strategic partnerships. However, the company acknowledged the potential impact of geopolitical risks, particularly related to the war in Ukraine, on its operations and financial performance. The management remains focused on maintaining operational efficiency and supporting its workforce while navigating these challenges.