EPAM Systems shares fell by more than 18 per cent following a cut to its annual revenue forecast on Thursday, August 6. The company cited slowing demand for its software services as the reason for the adjustment.
The IT services provider, which offers consulting, cloud and AI transformation, and software engineering, reported mixed demand across its business sectors. Weakness in the software and technology vertical was partly offset by strength in financial services.
Revised forecast for 2026 revenue growth, down from the previous range of 4.0 per cent to 6.5 per cent.
Financial services revenue rose 11.5 per cent year over year. However, software and hi-tech revenue fell 1.3 per cent, while business information and media revenue declined 2.1 per cent.
Future Outlook and Market Concerns
EPAM Systems expects third-quarter revenue to be between $1.410 billion and $1.425 billion. The company also forecasted annual adjusted profit in the range of $13.08 to $13.24 per share, compared to its prior view of $12.98 to $13.28.
Software and IT services providers are facing investor concerns that advanced AI tools from companies such as OpenAI and Anthropic could automate software development tasks and reduce demand.
