EPAM shares soar 7% after third-quarter report. Company adds 800 people
Software developer EPAM Systems reported financial results for the third quarter of 2026, which were better than analysts' forecasts.
Software developer EPAM Systems reported financial results for the third quarter of 2026, which were better than analysts' forecasts.
According to the official report, the company's revenue for the reporting period amounted to $1.426 billion, which is 2.3% more than in the same period last year and slightly exceeds the S&P consensus estimates. Adjusted earnings per share (EPS) also exceeded forecasts, stopping at $3.51 instead of the expected $3.41. At the same time, the operating margin increased to 12.3% against 10.4% last year, which indicates high efficiency - the outsourcer's expenses grew more slowly than revenues.
As Yahoo Finance notes, immediately after the results were published, the company's stock price jumped 7.3%, reaching $147.37 per share. This brought the total market capitalization of the IT giant to $7.09 billion.
EPAM's key figures for the third quarter are as follows:
- revenue — $1.426 billion versus S&P analysts' consensus estimates of $1.42 billion (growth of 2.3% year-on-year, exceeding the forecast by 0.5%);
- adjusted earnings per share (EPS) — $3.51 versus the forecast of $3.41 (3.1% increase);
- The revenue forecast for the midpoint of Q4 is set at $1.41 billion, which is 0.6% below the analyst consensus of $1.42 billion;
- Adjusted EPS forecast: Management slightly raised its annual EPS forecast to an average of $13.27;
- operating margin was 12.3% compared to 10.4% in the same quarter last year;
- Revenue in constant currencies increased by 2.5% year-on-year (versus 7.1% in the same period last year);
The company's market capitalization reached $7.09 billion.
“This was a strong quarter: performance exceeded expectations, margins continue to improve, and our transformation strategy and AI products are proving successful,” said EPAM CEO Balazs Fejes. According to him, the company expanded strategic partnerships, launched new Frontier AI services, and increased shareholder returns.
As of September 2026, EPAM's global team numbered approximately 63,650 employees, including 57,350 technical specialists. The company's staff grew by 800 people during the third quarter. In particular, the outsourcer attracted 700 more engineers than was recorded at the end of the second quarter.
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