EPAM Shares Fall After Weak Outlook
EPAM Systems saw its shares decline sharply after issuing a cautious outlook despite forecasting first-quarter results in line with market expectations.
The company projected first-quarter revenue between $1.38 billion and $1.40 billion, aligning with analyst estimates. Adjusted earnings per share are expected to range from $2.70 to $2.78.
However, investors reacted negatively to EPAM’s 2026 revenue growth guidance of 3 to 6 percent, which signals slower expansion compared to the 5 percent organic growth reported in 2025.
EPAM operates across IT consulting, cloud services and AI-driven transformation projects. While demand for digital modernization remains steady, the company’s conservative projections appear to reflect ongoing economic uncertainty.
Fourth-quarter performance exceeded expectations, with revenue reaching $1.41 billion and adjusted earnings per share of $3.26.
Despite solid recent results, the tempered growth outlook weighed on market sentiment.