EPAM Reports Modest Q2 Growth Amid AI Push and Share Buybacks
Event summary
- EPAM reported Q2 2026 revenues of $1.415 billion, up 4.5% year-over-year.
- GAAP income from operations increased to 10.8% of revenues from 9.3%.
- The company spent $85 million on share repurchases in Q2 and $409 million since the beginning of the year.
- Full-year revenue growth guidance revised down to 3.2%-4.2%, with organic constant currency growth at 2.0%-3.0%.
- Total headcount was approximately 62,850 as of June 30, 2026.
The big picture
EPAM's Q2 results reflect a continued focus on AI transformation and profitability improvement, despite modest revenue growth. The company's strategic partnerships and engineering expertise are central to its multi-year strategy. However, the revised full-year guidance suggests potential challenges in sustaining growth momentum amid broader economic uncertainties.
What we're watching
- AI Momentum
- How EPAM's AI-native momentum will impact its strategic partnerships and commercial transformation.
- Profitability Trends
- Whether the ongoing profitability improvement can be sustained amid revised revenue growth guidance.
- Capital Allocation
- The pace at which EPAM will continue to return capital to shareholders through share repurchases.
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