Epam Systems (EPAM) Q2 FY2026 earnings: revenue $1.4 billion, up 4.5% on the year

Epam Systems, Inc. (EPAM) reported revenue of $1.4 billion for Q2 FY2026, the quarter ended 30 June 2026, up 4.5% on the same quarter a year earlier. Net income was $103 million, up 17.0% on the year, and diluted earnings per share $1.97. The figures are the company's own, from the 10-Q it filed with the SEC on 6 August 2026.

Revenue$1.4 billionup 4.5%

Net income$103 millionup 17.0%

Diluted EPS$1.97

QuarterQ2 FY2026ended 30 June 2026

What management said

Guidance figures: 3 raised, 4 lowered, 4 new, 2 kept.

Q2 revenues reached $1.415 billion: Revenues increased to $1.415 billion, up 4.5% year-over-year or $61.3 million. On organic constant currency basis, growth was 3.4%, with foreign exchange headwind of 1.1 percentage points.
GAAP operating income up 20.4%: GAAP income from operations increased to $152.2 million from $126.5 million, up $25.7 million. Operating margin expanded to 10.8% from 9.3% year-over-year.
Non-GAAP operating income increased 14.7%: Non-GAAP income from operations rose to $232.7 million, up $29.8 million from $202.9 million. Non-GAAP operating margin expanded to 16.4% from 15.0%.

Read the earnings call summary

The quarter, against the one before and a year earlier

Line	Q2 FY2026	Q1 FY2026	Q2 FY2025	Change on the year
Revenue	1,415	1,400	1,353	+4.5%
Cost of revenue	985	1,012	964	+2.2%
Gross profit	430	388	389	+10.3%
Gross margin	30.4%	27.7%	28.8%
Selling, general and administrative	245	240	232	+5.9%
Operating income	152	117	126	+20.4%
Operating margin	10.8%	8.3%	9.3%
Pre-tax income	141	121	124	+13.6%
Income tax	37.6	38.1	35.7	+5.1%
Effective tax rate	26.7%	31.6%	28.9%
Net income	103	82.5	88.0	+17.0%
Net margin	7.3%	5.9%	6.5%
Diluted EPS	$1.97	$1.52	$1.56	+26.3%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow and capital returned

Line	Q2 FY2026	Q1 FY2026	Q2 FY2025	Change on the year
Operating cash flow	-2.4	-36.4	53.2	n/a
Capital expenditure	15.2	17.9	9.8	+54.8%
Free cash flow	-17.6	-54.2	43.4	n/a
Free cash flow margin	-1.2%	-3.9%	3.2%
Cash from investing	-16.5	-15.6	-18.2	n/a
Cash from financing	-233	-192	-204	n/a
Depreciation and amortisation	32.1	31.5	31.3	+2.6%
Share-based compensation	46.4	49.9	38.6	+20.3%
Buybacks	85.0	324	196	-56.7%
Diluted shares, weighted	52m	54m	57m	-7.6%
Shares outstanding at period end	52m	53m	56m	-7.4%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q2 FY2026	Q1 FY2026	Q2 FY2025	Change on the year
Shareholders' equity	3,519	3,431	3,668	-4.1%
Non-controlling interest	0.6	0.6	0.6	+0.0%
Debt	25.0	165	25.0	-0.2%
Operating lease liabilities	87.9	86.2	97.2	-9.5%
Other liabilities	942	1,021	920	+2.4%
Total liabilities and equity	4,574	4,703	4,711	-2.9%
Fixed assets	205	203	202	+1.7%
Goodwill	1,203	1,205	1,209	-0.5%
Intangible assets	373	386	436	-14.4%
Cash and equivalents	789	1,037	1,041	-24.2%
Other assets	2,004	1,873	1,822	+9.9%
Total assets	4,574	4,703	4,711	-2.9%

Questions

What was Epam Systems' revenue in Q2 FY2026?

Epam Systems (EPAM) reported revenue of $1.4 billion for Q2 FY2026, the quarter ended 30 June 2026, up 4.5% on the same quarter a year earlier.

How much did Epam Systems earn in Q2 FY2026?

Net income for Q2 FY2026 was $103 million, up 17.0% on the year, and diluted earnings per share $1.97.

When did Epam Systems report Q2 FY2026 results?

Epam Systems filed its 10-Q for the quarter ended 30 June 2026 with the SEC on 6 August 2026.

Quarterly results, the last 12 quarters

	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026
Revenue	1,152	1,157	1,165	1,147	1,168	1,248	1,302	1,353	1,394	1,408	1,400	1,415
Cost of revenue	794	798	834	811	764	868	952	964	983	984	1,012	985
Gross profit	358	360	331	336	404	380	350	389	411	423	388	430
Gross margin	31%	31%	28%	29%	35%	30%	27%	29%	29%	30%	28%	30%
SG&A	195	214	198	194	207	217	219	232	235	243	240	245
Operating income	114	122	111	121	177	137	99.3	126	145	149	117	152
Operating margin	10%	11%	9%	11%	15%	11%	8%	9%	10%	11%	8%	11%
Pre-tax income	132	127	124	134	190	137	94.4	124	144	144	121	141
Tax rate	26%	23%	6%	26%	28%	25%	22%	29%	26%	24%	32%	27%
Net income	97.2	97.6	116	98.6	136	103	73.5	88.0	107	109	82.5	103
Net margin	8%	8%	10%	9%	12%	8%	6%	7%	8%	8%	6%	7%
Diluted EPS	$1.65	$1.66	$1.97	$1.70	$2.37	$1.80	$1.28	$1.56	$1.91	$1.98	$1.52	$1.97
Operating cash flow	215	171	130	57.0	242	130	24.2	53.2	295	283	-36.4	-2.4
Capital expenditure	3.6	10.0	6.7	4.7	5.0	15.7	9.3	9.8	8.3	14.8	17.9	15.2
Free cash flow	211	161	123	52.3	237	115	14.8	43.4	286	268	-54.2	-17.6
Buybacks	78.5	36.5	121	214	50.0	13.0	160	196	82.1	224	324	85.0
Shares outstanding	58m	58m	58m	57m	57m	57m	57m	56m	55m	54m	53m	52m
Filing	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS and diluted share count are from the company's results press release for that quarter, used where the release gives the same revenue and net income as the table. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 30 June 2026, filed 6 August 2026, accession 0001352010-26-000046: the filing on EDGAR. All of Epam Systems, Inc.'s filings: EDGAR company page.

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