EPAM Systems, Inc. (EPAM), a digital and AI transformation company, on Thursday reported higher net income in the first quarter of 2026 compared with the previous year. The company raised its 2026 adjusted earnings outlook and lowered its revenue growth forecast following first-quarter results.
Although the earnings were up, the shares are still down. The share has been on a decline for several weeks.
For the first quarter, net income increased to $82.52 million from $73.48 million in the prior year.
Earnings per share were $1.52 versus $1.28 last year.
Adjusted net income surged to $155.22 million from $138.02 million in the prior year.
Adjusted earnings per share were $2.86 versus $2.41 last year.
Income from operations jumped to $116.77 million from $99.33 million in the prior year.
Adjusted income from operations also surged to $200.74 million from $175.75 million in the previous year.
Revenue increased to $1.40 billion from $1.30 billion in the previous year.
Looking ahead, the company lowered its full-year 2026 revenue growth guidance to 4% to 6.5% from its previous outlook of 4.5% to 7.5%. The company also reduced its full-year 2026 organic constant-currency revenue growth forecast to 2.5% to 5% from the prior range of 3% to 6%.
For the full year 2026, the company continued to expect 2026 income from operations in the range of 10% to 11% of revenues and adjusted income from operations in the range of 15% to 16% of revenues.
While the company raised its 2026 earnings per share outlook to $8.29 to $8.59 from the previous range of $7.95 to $8.25.
The company also increased its adjusted earnings per share forecast to $12.98 to $13.28 from the prior outlook of $12.60 to $12.90.
Looking ahead, the company expects second-quarter revenue of $1.40 billion to $1.42 billion, representing year-over-year growth of 4% at the midpoint and organic constant-currency growth of 2.7% at the midpoint.
The company expects earnings per share of $1.79 to $1.87 and adjusted earnings per share of $3.10 to $3.18 for the quarter.
In the pre-market trading, EPAM is 6.04% lesser at $100.50 on the New York Stock Exchange.
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