Overview

• Digital transformation services firm's Q1 revenue rose 7.6%, slightly beating analyst expectations

• Adjusted EPS for Q1 increased 18.7%, beating analyst expectations

• Company spent $324 mln on share repurchases, including $300 mln accelerated buyback

Outlook

• EPAM expects Q2 revenue between $1.400 bln and $1.415 bln

• Company sees full-year revenue growth of 4.0% to 6.5%

• EPAM expects 2026 GAAP diluted EPS of $8.29 to $8.59

Result Drivers

• AI INITIATIVES - Co said Q1 performance reflected steady execution and momentum in AI-native and AI foundational readiness initiatives

• TRANSFORMATION STRATEGY - Management cited a multi-year transformation to position for AI growth opportunities and accelerate internal AI adoption

Company press release: ID:nPn7wC2wFa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Slight Beat*	$1.40 bln	$1.39 bln (15 Analysts)
Q1 Adjusted EPS	Beat	$2.86	$2.75 (16 Analysts)
Q1 EPS		$1.52
Q1 Adjusted Income from Operations	Beat	$200.70 mln	$195.65 mln (14 Analysts)
Q1 Income from Operations		$116.80 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Epam Systems Inc is $171.00, about 59.9% above its May 6 closing price of $106.97

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 17 three months ago

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