Key Highlights

● Second-quarter 2026 revenue was US$1.415 billion, up 4.5% year on year.

● GAAP operating margin rose to 10.8% from 9.3%, and non-GAAP margin to 16.4%.

● The revised 2026 outlook expects revenue growth of 3.2% to 4.2%.

● EPAM repurchased US$409 million of stock in the first half of 2026.

Latest verified development

EPAM Systems, Inc. (NYSE:EPAM), the digital engineering and IT services group, reported second-quarter 2026 results on 6 August 2026. Revenue was US$1.415 billion, up 4.5% year on year and 3.4% on an organic constant-currency basis. GAAP diluted earnings per share rose 26.3% to US$1.97, and non-GAAP diluted earnings per share rose 22.0% to US$3.38.

Margins improved. GAAP operating margin was 10.8%, up from 9.3%, and non-GAAP operating margin was 16.4%, up from 15.0%. Earnings therefore grew much faster than revenue, which rose in the low single digits.

The organic constant-currency growth of 3.4% was below the reported 4.5%, a gap that reflects currency movements and any non-organic contribution, which the company strips out of its organic measure. The organic figure is the one most closely tied to underlying demand for services.

Revised outlook

The company revised its 2026 outlook. It now expects revenue growth of 3.2% to 4.2%, or 2.0% to 3.0% organically in constant currency, with non-GAAP operating margin of 15.5% to 16.0% and non-GAAP diluted earnings per share of US$13.08 to US$13.24. GAAP diluted earnings per share are guided at US$8.22 to US$8.38.

For the third quarter it guided revenue to US$1.410 billion to US$1.425 billion and non-GAAP earnings per share to US$3.38 to US$3.46.

Capital allocation and workforce

Cash, cash equivalents and restricted cash were US$794.3 million at 30 June 2026, down 39.0% from US$1.301 billion at the end of 2025. Share repurchases explain part of that decline: EPAM bought back US$85 million of stock in the second quarter and US$409 million in the first half. The company guided to about 52.2 million diluted shares for 2026 and 51.4 million for the third quarter.

Headcount was about 62,850, including roughly 56,650 delivery professionals, a 0.3% increase in delivery staff from 31 March. For a services business whose revenue depends on billable people, flat headcount alongside rising margins indicates that margin gains came without a meaningful increase in staff, although the release does not break down the drivers.

EPAM's third-quarter guide and cash balance

Third-quarter guidance of US$1.410 billion to US$1.425 billion represents growth of about 1.7% at the midpoint, a slower pace than the second quarter. Buybacks continue against a lower cash balance than at the start of the year.

The full-year organic constant-currency range of 2.0% to 3.0% sits below the 3.4% organic growth delivered in the second quarter, so the guide implies a slower second half.