EPAM Slashes Revenue Outlook, Guides Q3 Below Estimates; Shares Plunge 18%
EPAM sits 24% above its 52-week low of $73.055 on light trading volume (0.2× avg).
Summary
EPAM cut its 2026 revenue growth forecast to 3.2%-4.2% from 4.0%-6.5%, citing weak demand from software and tech clients. Q3 revenue guidance of $1.41B-$1.425B missed the $1.45B consensus, sending shares down over 18%. The company also narrowed its adjusted profit outlook to $13.08-$13.24 per share. While Q2 results slightly beat on revenue and EPS, the forward view is deteriorating — software/hi-tech revenue fell 1.3% and business information/media dropped 2.1%, only partly offset by 11.5% growth in financial services. This follows yesterday's 8-K earnings release and an earlier EPS guidance headline, but the revenue cut and Q3 miss are new negative signals. The sharp selloff reflects genuine disappointment with the demand trajectory.
At the time of this announcement, EPAM was trading at $90.68 on NYSE in the Technology sector, with a market capitalization of approximately $4.7B. 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: Reuters.