EPAM shares tumble as cautious quarterly outlook disappoints

Feb 19 (Reuters) - 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% in premarket trading.

Jefferies analysts said ‌the "2026 revenue guidance of +3-6% ‌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% 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.

(Reporting by Kritika Lamba in Bengaluru; Editing by Mrigank Dhaniwala and Shailesh ‌Kuber)

---

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

---

You May Also Be Interested In

• Jefferies: Used business jet inventories drop 45% year-over-year in August
• Gulf ship traffic via Strait of Hormuz hovers below 10-day average, data shows
• Hyundai lifts margin target, expands US hybrid lineup