Description

EPAM Systems’ Anthropic Partnership Sparks Buzz As AI-Native Revenue Scales!

EPAM Systems reported first-quarter 2026 results reflecting steady but moderated growth amidst evolving macroeconomic conditions. The company generated $1.4 billion in revenue, growing 7.6% year-over-year and reaching the high end of its guidance range. On a constant currency organic basis, revenue increased by 3.7%. Growth was broad-based across most verticals, with Financial Services and Software & Hi-Tech leading, while Business Information Media saw a slight decline. Geographically, EMEA demonstrated double-digit growth, while the Americas—the largest market—grew modestly by 2.5%, and APAC recorded minimal growth. Revenues from clients outside the top 20 outpaced those from top clients. Profitability improved, with GAAP gross margin expanding to 27.7% from 26.9% in the prior year, and non-GAAP gross margin reaching 29.4%. Income from operations rose about 18% on a GAAP basis to $117 million (8.3% of revenue) and over 14% non-GAAP to $201 million (14.3% of revenue).