EPAM shares tumble as cautious quarterly outlook disappoints
Figurines with computers and smartphones are seen in front of EPAM logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration
Feb 19 : EPAM Systems forecast first-quarter results in line with estimates on Thursday, but its cautious outlook disappointed investors, sending the company's shares down more than 16 per cent in premarket trading.
Jefferies analysts said the "2026 revenue guidance of +3-6 per cent year-over-year organic (constant currency) likely reflects some conservatism, but will also likely be viewed with some disappointment given organic constant currency growth in 2025 was 5 per cent y-o-y."
EPAM provides a wide range of IT services including consulting, cloud and AI transformation and software engineering.
Despite broader economic uncertainty, businesses have kept up spending on software development and AI-driven transformation projects, to catch up in the AI race.
EPAM sees first-quarter revenue in the range of $1.38 billion to $1.40 billion, the mid-point of which is in line with analysts' estimates, according to data compiled by LSEG.
On an adjusted basis, EPAM expects profit per share in the range of $2.70 to $2.78, also in line with estimates.
For the fourth quarter, the company posted revenue of $1.41 billion, above analysts' estimates of $1.39 billion and adjusted EPS of $3.26 were, also above estimates.
