EPAM Systems raises annual profit forecast on strong IT service demand

May 7 (Reuters) - EPAM ‌Systems on ​Thursday ​raised its annual profit forecast, after beating quarterly profit estimates, on strong demand for its ‌software services amid sustained spending by companies on ⁠artificial intelligence technology enhancement.

• The IT consultancy firm expects full-year ‌adjusted profit to be ‌in the range of $12.98 to $13.28 per share, compared with the prior view of $12.60 to $12.90.

• It forecast second-quarter ​profit in the range of $3.10 to $3.18 per share on an adjusted basis, the mid-point of which ⁠is above the estimates of $3.10.

• "We are on a multi-year transformation journey, continuing ​to position ourselves to fully benefit and capitalize on AI growth opportunities as well ​as accelerate our own AI ‌client zero transformation," CEO and President Balazs Fejes said.

• However, EPAM expects second-quarter revenue ⁠of $1.40 billion to $1.42 billion, slightly below estimates of $1.43 billion.

• The company provides a wide range of IT services including ⁠consulting, cloud and AI transformation and software engineering.

• Its first-quarter ​revenue of $1.40 billion was in line with analysts' estimates.

• Its adjusted EPS came in at $2.86 per share for the quarter ended ‌March 31, topping analysts' average estimate of $2.75, according to data compiled by LSEG.

• ‌The spending on software development and AI-driven transformation projects ⁠by companies has sustained ‌despite broader economic ​uncertainty.

• EPAM also sees year-over-year revenue growth rate between 4% and 6.5% for 2026.

(Reporting by ‌Arunesh Sinha)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Ken Griffin's Citadel sheds over $4 billion of Situational Awareness' bets
• Mexican governor accused by US of cartel ties returns to office
• Orbital data center startup Starcloud valued at $2.3 billion in latest funding