EPAM Systems raised its annual revenue and earnings forecast on Thursday and announced a major leadership transition, sending its stock up about 10% in premarket trading.
The IT services and consulting firm said founder and long-time CEO Arkadiy Dobkin will become executive chairman effective September 1, while current Chief Revenue Officer Balazs Fejes will take over as the new Chief Executive Officer.
Financial Highlights:
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2025 revenue growth is now projected at 11.5% to 14.5%, up from the previous 10% to 14% range.
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Full-year adjusted EPS forecast increased to $10.70–$10.95, from $10.45–$10.75.
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Q1 revenue: $1.30 billion vs. $1.28 billion expected (LSEG data)
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Q1 adjusted EPS: $2.41 vs. $2.27 expected
Strategic and Market Context:
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EPAM’s diversified IT consulting services have helped it outperform peers during a cautious tech spending environment.
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Larger rivals such as Accenture and IBM have recently faced setbacks due to U.S. federal contract cutbacks amid Trump administration spending reductions.
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EPAM’s recent acquisition of FD Technologies’ consulting unit is strengthening its positioning in AI-driven financial services.
Looking Ahead:
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The company also issued a second-quarter forecast that topped Wall Street expectations for both revenue and profit.
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The leadership transition comes at a time when EPAM is shifting deeper into AI and digital transformation services, and the company says the change is aimed at accelerating innovation and global growth.