The company guided 2026 revenue growth of 3.2% to 4.2% and reiterated a target of $600 million in AI-native revenue as part of its strategic AI push.

For fiscal 2026, EPAM maintained the AI-native revenue target of $600 million and projected annual organic constant currency growth of 2%–3%, with Q3 2026 revenue expected between $1.410 billion and $1.425 billion (midpoint about 1.7% higher).

EPAM reported Q2 2026 revenue of $1.415 billion, up 4.5% year over year with 3.4% organic constant currency growth, and AI-native revenue of $160 million, representing over 11% of total and marking six consecutive quarters of double-digit sequential growth.

Verticals were mixed: Financial Services led with about 11.5% year-over-year growth, Life Sciences & Healthcare grew around 8%, Energy expanded, while Software & Hi-Tech and Business Information & Media declined due to ramp-downs and completed projects.

Management noted AI deployment brings complexity and requires last-mile solution engineering, emphasizing forward deployed engineers and pursuing multi-year AI-enabled deals, including AI-led modernization and mainframe reverse engineering.

Notable client examples included reverse engineering over 10 million lines of code for a wealth management firm with roughly 60% time savings, a unified data platform delivering over €30 million in operational impact for a beverage company, and migrating 1,000 workloads to AWS with substantial cost and efficiency gains for an energy commodities client.

Cash flow showed weakness: operating cash flow was negative $2 million and free cash flow negative $18 million, pressured by higher variable compensation and rising receivables; days sales outstanding rose to 82 from 76 in the prior quarter.

North America growth underperformed at 0.5% year over year, while EMEA grew 10.9% (9.4% in constant currency) and APAC declined 0.3%; a multi-quarter commercial transformation was launched in North America to bolster large-account pursuit and pipeline management.

Headcount reached about 62,850 with 56,650 delivery professionals, a 1.5% year-over-year increase, and utilization improved to 78.3%.

This summary reflects earnings-call insights with standard disclosures about AI content reliability.

Strategic AI initiatives include joining the OpenAI Partner Network as an advanced partner, expanding training for thousands of specialists across OpenAI, Google Gemini, and Anthropic, and pursuing multiyear AI opportunities in regulated sectors and vendor-consolidation programs slated to contribute meaningfully starting in 2027.

EPAM ended the quarter with about $800 million in cash and equivalents, repurchased roughly 1.3 million shares, and returned around $1.6 billion to shareholders since the program began.