EPAM Systems on Feb. 19 projected first-quarter results consistent with consensus expectations, citing ongoing client investment in AI-enabled systems and continued demand for its software and cloud services. The company delivers a broad suite of IT capabilities, including consulting, cloud and AI transformation, and software engineering, and said these engagements are sustaining its activity levels despite macroeconomic pressures.
For the first quarter, EPAM forecast revenue between $1.38 billion and $1.40 billion. The mid-point of that range aligns with analysts' estimates, according to data compiled by LSEG. On an adjusted basis, the company is guiding profit per share of $2.70 to $2.78, which similarly lines up with consensus expectations.
Looking back at the fourth quarter, EPAM reported revenue of $1.41 billion, which exceeded the analyst estimate of $1.39 billion. Adjusted earnings per share for the quarter came in at $3.26, also above the consensus figure. Despite those quarterly outperformance metrics, the company experienced negative market reaction, with shares falling more than 4% in premarket trading.
The company described client spending patterns as being driven by an imperative to accelerate AI-driven transformation and to modernize software stacks. Even with broader economic uncertainty present, businesses have maintained budgets for software development and AI efforts as they seek to keep pace in the race to deploy advanced capabilities.
Key financial guidance and recent results are as follows:
- Q1 revenue guidance: $1.38 billion to $1.40 billion; midpoint in line with analysts per LSEG data.
- Q1 adjusted EPS guidance: $2.70 to $2.78, also in line with estimates.
- Q4 actuals: revenue $1.41 billion (above $1.39 billion estimate) and adjusted EPS $3.26 (above estimates).
- Market reaction: shares fell more than 4% in premarket trading following the guidance release.
The guidance and quarter-to-quarter reporting underscore that EPAM's revenue base remains supported by corporate spending on cloud and AI initiatives, even as companies navigate uncertain economic conditions. The company did not provide additional forward-looking details beyond the ranges noted above.