New York, Feb 20, 2026, 06:32 EST — Premarket
EPAM Systems dropped roughly 17% in U.S. premarket trade Friday, sliding to $139.16—a $28.22 decline from the previous close. The IT services provider is grappling with an extended selloff after outlining a slower-growth outlook for the coming year.
EPAM’s drop isn’t just another stock move—investors often use it as a proxy for trends in enterprise tech budgets, particularly around cloud upgrades and AI-driven projects. With a gap down this sharp, fund managers find themselves scrambling to reset their growth forecasts in a hurry.
The timing comes as markets keep knocking down “beat-and-guide-down” quarters. Right now, traders care less about last quarter’s numbers, and more about what the company is signaling for current demand and the 2026 pipeline.
EPAM posted late Thursday that its fourth-quarter revenue hit $1.408 billion, marking a 12.8% rise from the same period last year. Adjusted diluted earnings per share came in at $3.26. Looking ahead, the company expects 2026 revenue growth between 4.5% and 7.5%, with organic constant-currency gains of 3% to 6%, excluding currency and M&A impacts. First-quarter revenue guidance landed in the $1.385 billion to $1.400 billion range, with forecast non-GAAP EPS of $2.70 to $2.78. “We are pleased to deliver a strong fourth quarter,” CEO Balazs Fejes said in the statement, highlighting gains from “scaling and accelerating” AI-native revenue. (EPAM Systems)
“Non-GAAP” numbers leave out specific costs and gains that, according to the company, might obscure the real picture. “Constant currency” takes exchange-rate swings out of the equation by recalculating results at set rates—essential for tracking firms with heavy international payrolls and customer bases. Services companies with global reach often see investors zero in on both metrics.
Jefferies analysts pointed out that the 2026 guidance “likely reflects some conservatism,” but suggested it would “likely be viewed with some disappointment” compared to last year’s growth. EPAM’s forecast comes as spending on software and AI transformation continues, though executives remain wary about overall budgets. (Reuters)
It’s a pattern showing up throughout IT services. Clients keep greenlighting AI projects and essential platform upgrades, yet they’re also pushing out deadlines, narrowing what gets delivered, or squeezing for greater output without boosting spend. Competitors in consulting and outsourcing are feeling the same pressure—so when EPAM changes how it talks about growth, it doesn’t just stop there. The move sends waves through the broader sector.
The company on Thursday filed its earnings release as an exhibit to a Form 8-K with the U.S. Securities and Exchange Commission, officially putting the update on record for investors. (SEC)
The risk? Clients could delay fresh projects, or currency swings might hit harder, dragging on EPAM’s organic growth—even if reported revenue stays steady. Rapid adoption of AI tools is another wild card; if those start trimming billable coding hours before pricing adapts, margins could feel the squeeze.
Friday brings a fresh test: does the stock attract dip-buyers at the bell, or does the slide deepen as funds shuffle positions based on revised growth outlooks? Analyst notes and price target changes are on the radar, too, as models adjust to the latest guidance.
EPAM’s Investor Day lands on March 12. That’s when the company’s top brass — Fejes and CFO Jason Peterson among them — are slated to roll out their long-term strategy and growth roadmap. A webcast is set for those tuning in remotely. (EPAM Systems)
