EPAM Slashes Revenue Outlook, CEO Warns North America 'Not Growing Fast Enough'
EPAM sits 30% above its 52-week low of $73.055.
Summary
EPAM cut its 2026 revenue growth forecast to 3.2%-4.6% from 4.0%-6.5%, citing weak demand from software and tech clients. CEO Balazs Fejes was blunt: 'North America is not growing fast enough,' and flagged a shift away from text-based services toward AI-led modernization. The stock fell 14% to $94.83, adding to a 54% year-to-date decline. This follows yesterday's Q2 beat and earlier EPS guidance raise, but the revenue cut overshadows those positives. The demand pivot toward AI services may pressure margins if EPAM's mix shifts faster than expected.
At the time of this announcement, EPAM was trading at $95.26 on NYSE in the Technology sector, with a market capitalization of approximately $5B. The 52-week trading range was $73.06 to $222.53. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.