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EPAM’s $160 Million AI Engine — Can It Rescue North American Growth?

EPAM reported its second quarter 2026 financial results with mixed outcomes. Revenue reached $1.415 billion, representing a 4.5% year-over-year increase on a reported basis and 3.4% organic constant currency growth. Four of six verticals grew year-over-year, led by Financial Services and Life Sciences & Healthcare, while Software & Hi-Tech and Business Information & Media experienced declines primarily due to project completions and ramp downs. Geographically, the Europe, Middle East, and Africa (EMEA) region displayed strong double-digit growth, particularly in financial services and energy sectors. In contrast, the Americas region—the largest contributor to revenue at 57%—saw modest 0.5% growth, with significant softness in software and media verticals. The company highlighted its strategic focus on artificial intelligence (AI) native software engineering, targeting modernization and the increase of AI-related revenue, which reached over $160 million in the quarter.