Earnings Release

EPAM Systems, Inc.'s latest earnings press release, filed Aug 5, 2026, scored line by line for tone, guidance and what changed since the prior release.

New outlook issued37 lines scoredFiled Aug 5, 2026SEC 8-K · Exhibit 99

Release Tone

UPBEAT

GuidanceNew outlook issuedWhat this release does to the company's outlook

Tone change▲ 2.7pointsvs the prior release (May 6, 2026)

Hedging language0.83per 100 words▼ 0.07 vs prior

New this quarter7of 37 linesWording that was not in the prior release

The lines that matter most

Ranked by how material, how strongly worded and how new each sentence is.

1
Second quarter GAAP income from operations increased to 10.8% of revenues from 9.3%, and non-GAAP income from operations increased to 16.4% of revenues from 15.0%, on a year-over-year basis
New this quarter
2
Cash, cash equivalents and restricted cash totaled $794.3 million as of June 30, 2026, a decrease of $507.1 million, or 39.0%, from $1.301 billion as of December 31, 2025;
Negative tone
3
The Company expects revenues will be in the range of $1.410 billion to $1.425 billion for the third quarter, reflecting year-over-year growth of 1.7% at the midpoint of the range.
4
Non-GAAP diluted EPS was $3.38, an increase of $0.61, or 22.0%, compared to $2.77 in the second quarter of 2025.
5
Second quarter revenues of $1.415 billion, up 4.5% year-over-year
6
Diluted earnings per share (“EPS”) on a GAAP basis was $1.97, an increase of $0.41, or 26.3%, compared to $1.56 in the second quarter of 2025; and
7
On an organic constant currency basis, revenues were up 3.4% compared to the second quarter of 2025;
8
For the full year, EPAM now expects the year-over-year revenue growth rate to be in the range of 3.2% to 4.2% and now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 2.0% to 3.0%

Release by release

Tone and guidance for the last 2 earnings releases.

Aug 5, 2026New outlook issued72.0+2.7
May 6, 2026Guidance reaffirmed69.4

Bar length: tone on a 50–78 scale.

The release, annotated

1Highlight rankPositive toneNeutralNegative toneDimmed text: low materiality

Results

5Second quarter revenues of $1.415 billion, up 4.5% year-over-year

1Second quarter GAAP income from operations increased to 10.8% of revenues from 9.3%, and non-GAAP income from operations increased to 16.4% of revenues from 15.0%, on a year-over-year basis

Second quarter GAAP diluted EPS of $1.97, an increase of $0.41, or 26.3%, and non-GAAP diluted EPS of $3.38, an increase of $0.61, or 22.0%, on a year-over-year basis

Capital return

Continued to return capital to shareholders, spending $85 million in the second quarter on share repurchases and $409 million since the beginning of the year

Outlook

8For the full year, EPAM now expects the year-over-year revenue growth rate to be in the range of 3.2% to 4.2% and now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 2.0% to 3.0%

For the full year, EPAM now expects its GAAP diluted EPS to be in the range of $8.22 to $8.38, and non-GAAP diluted EPS to be in the range of $13.08 to $13.24

Management commentary

“Our second quarter results came in better than expected with continued AI-native momentum and ongoing profitability improvement, reflecting solid execution against our multi-year strategy,” said Balazs Fejes, CEO & President, EPAM.

“As we continue to expand our strategic partnerships and leverage our 30+ years of engineering DNA to build the next generation forward-deployed engineering organization, our conviction in the strategy, the team and our commercial transformation is high.”

Results

Second Quarter 2026 Highlights

Revenues increased to $1.415 billion, a year-over-year increase of $61.3 million, or 4.5%.

7On an organic constant currency basis, revenues were up 3.4% compared to the second quarter of 2025;

GAAP income from operations was $152.2 million, an increase of $25.7 million, or 20.4%, compared to $126.5 million in the second quarter of 2025;

Non-GAAP income from operations was $232.7 million, an increase of $29.8 million, or 14.7%, compared to $202.9 million in the second quarter of 2025;

6Diluted earnings per share (“EPS”) on a GAAP basis was $1.97, an increase of $0.41, or 26.3%, compared to $1.56 in the second quarter of 2025; and

4Non-GAAP diluted EPS was $3.38, an increase of $0.61, or 22.0%, compared to $2.77 in the second quarter of 2025.

Cash Flow and Other Metrics

Cash used in operating activities was $38.8 million for the first six months of 2026, compared to cash provided by operating activities of $77.4 million for the first six months of 2025;

2Cash, cash equivalents and restricted cash totaled $794.3 million as of June 30, 2026, a decrease of $507.1 million, or 39.0%, from $1.301 billion as of December 31, 2025;

Capital return

The Company spent $409.0 million on share repurchases during the first six months of 2026 under its share repurchase program, which included $85.0 million during the second quarter; and

Results

Total headcount was approximately 62,850 as of June 30, 2026.

Included in this number were approximately 56,650 delivery professionals, an increase of 0.3% from March 31, 2026.

Outlook

2026 Outlook - Full Year and Third Quarter

Full Year

EPAM expects the following for the full year:

The Company now expects the year-over-year revenue growth rate to be in the range of 3.2% to 4.2% for 2026 and now expects the year-over-year revenue growth rate on an organic constant currency basis to be in the range of 2.0% to 3.0%;

For the full year, EPAM now expects GAAP income from operations to be in the range of 10.5% to 11.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.0% of revenues;

The Company continues to expect its GAAP effective tax rate to be approximately 27% and its non-GAAP effective tax rate to be approximately 24%; andGuidance reaffirmed

EPAM now expects GAAP diluted EPS to be in the range of $8.22 to $8.38 and non-GAAP diluted EPS to be in the range of $13.08 to $13.24.

The Company now expects weighted average diluted shares outstanding for the year to be 52.2 million.

Third Quarter

EPAM expects the following for the third quarter:

3The Company expects revenues will be in the range of $1.410 billion to $1.425 billion for the third quarter, reflecting year-over-year growth of 1.7% at the midpoint of the range.

The Company expects the year-over-year revenue growth rate on an organic constant currency basis to be 1.8% at the midpoint of the range;

For the third quarter, EPAM expects GAAP income from operations to be in the range of 11.0% to 12.0% of revenues and non-GAAP income from operations to be in the range of 15.5% to 16.5% of revenues;

The Company expects its GAAP effective tax rate to be approximately 25% and its non-GAAP effective tax rate to be approximately 24%; and

EPAM expects GAAP diluted EPS will be in the range of $2.33 to $2.41 for the quarter, and non-GAAP diluted EPS will be in the range of $3.38 to $3.46 for the quarter.

The Company expects weighted average diluted shares outstanding for the quarter to be 51.4 million.

38 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.

How this is scored

Source: the press release EPAM Systems, Inc. filed with the SEC as Exhibit 99 to Form 8-K (Item 2.02). Financial statements and boilerplate are set aside.
Tone: a financial sentiment model scores each sentence 0 to 100; the release score weights sentences by how material they are.
Materiality and guidance: a classifier judges whether each sentence is specific information, and what the release does to the outlook.
New this quarter: wording that does not appear in the prior release.
Hedging: uncertainty words (may, could, approximately, headwinds and similar) per 100 words of narrative.

These scores describe the release's language. They are not a forecast or a recommendation. Read the original filing

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