EPAM Systems delivered uneven growth across its major industries during the second quarter of 2026, with Financial Services emerging as one of its strongest verticals as revenue increased 11.5% year-over-year to approximately $366 million.
The Q2 results chart on page 2 shows Life Sciences & Healthcare revenue rising 8% to $169 million and Emerging revenue increasing 4.9% to $237 million. Consumer Goods, Retail & Travel increased 2.3% to $274 million. By comparison, Software & Hi-Tech revenue declined 1.3% to $202 million, while Business Information & Media fell 2.1% to $167 million.
Geographic growth was similarly mixed. The page 2 chart shows EMEA revenue increasing 10.9% to $582 million, while Americas revenue increased just 0.5% to $806 million and APAC declined 0.3% to $27 million.
Despite the uneven revenue performance, profitability improved considerably. Total Q2 revenue increased 4.5% to $1.415 billion, or 3.4% on an organic constant-currency basis. GAAP income from operations increased 20.4% to $152.2 million, while non-GAAP income from operations increased 14.7% to $232.7 million.
GAAP operating margin expanded to 10.8% from 9.3% a year earlier, while non-GAAP operating margin increased to 16.4% from 15%. GAAP diluted EPS increased 26.3% to $1.97, and non-GAAP diluted EPS increased 22% to $3.38.
EPAM characterized its performance as reflecting continued AI-native momentum and progress toward creating what management calls a next-generation forward-deployed engineering organization.
The company has also been aggressive with capital returns. EPAM spent $409 million on share repurchases during the first half of 2026, including $85 million during Q2. Cash, cash equivalents and restricted cash declined 39% from year-end to $794.3 million, while operating activities used $38.8 million of cash during the first six months.
For 2026, EPAM expects revenue growth of 3.2% to 4.2%, including organic constant-currency growth of 2% to 3%. Non-GAAP operating margin is expected to range from 15.5% to 16%, with non-GAAP diluted EPS of $13.08 to $13.24.
KEY QUOTE:
“Our second quarter results came in better than expected with continued AI-native momentum and ongoing profitability improvement.”
Balazs Fejes, CEO & President of EPAM
