--- title: "Epam | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 1.4 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/285658043.md" datetime: "2026-05-08T03:27:38.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285658043.md) - [en](https://longbridge.com/en/news/285658043.md) - [zh-HK](https://longbridge.com/zh-HK/news/285658043.md) --- # Epam | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 1.4 B Revenue: As of FY2026 Q1, the actual value is USD 1.4 B, beating the estimate of USD 1.394 B. EPS: As of FY2026 Q1, the actual value is USD 1.52, beating the estimate of USD 1.4182. EBIT: As of FY2026 Q1, the actual value is USD 116.77 M. #### First Quarter 2026 Financial Highlights ##### Revenue - **Total Revenues**: EPAM Systems, Inc. reported revenues of $1.400 billion for the first quarter of 2026, representing a 7.6% year-over-year increase from $1.301 billion in the first quarter of 2025. On an organic constant currency basis, revenues increased by 3.7% compared to the first quarter of 2025. ##### Operational Metrics - **GAAP Income from Operations**: For the first quarter of 2026, GAAP income from operations was $116.8 million, an increase of 17.6% compared to $99.3 million in the first quarter of 2025. - **Non-GAAP Income from Operations**: Non-GAAP income from operations reached $200.7 million, up 14.2% from $175.8 million in the first quarter of 2025. - **GAAP Operating Margin**: The GAAP operating margin was 8.3% of revenues for the first quarter of 2026, compared to 7.6% in the first quarter of 2025. - **Non-GAAP Operating Margin**: The non-GAAP operating margin was 14.3% of revenues for the first quarter of 2026, up from 13.5% in the first quarter of 2025. - **Net Income**: GAAP net income was $82.5 million for the first quarter of 2026, compared to $73.5 million for the first quarter of 2025. - **Cost of Revenues (exclusive of depreciation and amortization)**: $1,012.1 million for Q1 2026, up from $952.0 million for Q1 2025. - **Selling, General and Administrative Expenses**: $239.7 million for Q1 2026, compared to $218.9 million for Q1 2025. - **Depreciation and Amortization Expense**: $31.5 million for Q1 2026, slightly up from $31.4 million for Q1 2025. - **Interest and Other Income, Net**: $1.6 million for Q1 2026, down from $5.8 million for Q1 2025. - **Foreign Exchange Gain (Loss)**: A gain of $2.3 million for Q1 2026, compared to a loss of - $10.7 million for Q1 2025. - **Provision for Income Taxes**: $38.1 million for Q1 2026, compared to $20.9 million for Q1 2025. ##### Cash Flow and Balance Sheet - **Cash Flow from Operating Activities**: Cash used in operating activities was - $36.4 million for the first three months of 2026, in contrast to cash provided by operating activities of $24.2 million for the first three months of 2025. - **Cash, Cash Equivalents and Restricted Cash**: Totaled $1.043 billion as of March 31, 2026, a 19.9% decrease from $1.301 billion as of December 31, 2025. - **Total Assets**: $4.703 billion as of March 31, 2026, down from $4.902 billion as of December 31, 2025. - **Total Liabilities**: $1.272 billion as of March 31, 2026, up from $1.224 billion as of December 31, 2025. - **Total EPAM Systems, Inc. Stockholders’ Equity**: $3.431 billion as of March 31, 2026, compared to $3.677 billion as of December 31, 2025. ##### Unique Metrics - **Share Repurchases**: EPAM Systems, Inc. spent $324 million on share repurchases during the first quarter of 2026, which included $300 million for an accelerated share repurchase (ASR). - **Headcount**: Total headcount was approximately 62,750 as of March 31, 2026, with approximately 56,500 delivery professionals, a 0.2% decrease from December 31, 2025. #### Outlook / Guidance - For the full year 2026, EPAM Systems, Inc. anticipates a revenue growth rate between 4.0% and 6.5%, with an organic constant currency growth rate expected between 2.5% and 5.0%. The company projects GAAP income from operations to be 10% to 11% of revenues and non-GAAP income from operations to be 15% to 16% of revenues. - For the second quarter of 2026, revenues are forecasted to be in the range of $1.400 billion to $1.415 billion, implying a 4.0% year-over-year growth at the midpoint. GAAP income from operations is expected to be 9% to 10% of revenues, and non-GAAP income from operations is projected to be 15% to 16% of revenues. ### Related Stocks - [EPAM.US](https://longbridge.com/en/quote/EPAM.US.md) ## Related News & Research - [Earnings To Watch: EPAM (EPAM) Reports Q1 Results Tomorrow](https://longbridge.com/en/news/285302574.md) - [EPAM Systems to Face Weaker Discretionary Spending Environment, Morgan Stanley Says](https://longbridge.com/en/news/285749189.md) - [EPAM Systems (NYSE:EPAM) Announces Earnings Results](https://longbridge.com/en/news/285822685.md) - [EPAM Price Target Cut to $110 as Softer Discretionary Spending Keeps Analyst at Hold](https://longbridge.com/en/news/285755533.md) - [Epam Systems Balances AI Momentum With Cautious Outlook](https://longbridge.com/en/news/285645348.md)