Epam Systems (EPAM) Q3 FY2026 earnings: revenue $1.4 billion, up 2.3% on the year

Epam Systems, Inc. (EPAM) reported revenue of $1.4 billion for Q3 FY2026, the quarter ended 30 September 2026, up 2.3% on the same quarter a year earlier. Net income was $130 million, up 22.0% on the year, and diluted earnings per share $2.53. The figures are the company's own, from the 10-Q it filed with the SEC on 5 November 2026.

Revenue

$1.4 billion

+2.3% on the year · +0.8% on the quarter

Q4 FY2024Q3 FY2026

Operating margin

12.3%

10.4% a year earlier

Q4 FY2024Q3 FY2026

Net income

$130 million

+22.0% on the year · +26.5% on the quarter

Q4 FY2024Q3 FY2026

Diluted EPS

$2.53

+32.5% on the year · +28.4% on the quarter

Q4 FY2024Q3 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 3 raised, 1 lowered, 3 narrowed, 11 new, 2 kept.

Revenue rose 2.3% year over year: Revenue was $1.426 billion, up $32.1 million, or 2.3%. Organic constant currency growth was 2.5%, with foreign exchange adding 0.2 points.
GAAP operating margin rose to 12.3%: GAAP income from operations was $175.9 million, up 21.4%, at 12.3% of revenues against 10.4%. Cost optimization charges were nil in the quarter, against $11.0 million a year earlier.
Non-GAAP operating margin reached 16.7%: Non-GAAP income from operations was $238.4 million, up 7.0%, at 16.7% of revenues against 16.0%. The company reports both measures alongside each other.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Revenue	1,426	1,415	1,394	+0.8%	+2.3%
Cost of revenue	980	985	983	-0.5%	-0.3%
Gross profit	446	430	411	+3.8%	+8.4%
Gross margin	31.3%	30.4%	29.5%
Selling, general and administrative	237	245	235	-3.2%	+1.0%
Operating income	176	152	145	+15.6%	+21.4%
Operating margin	12.3%	10.8%	10.4%
Pre-tax income	176	141	144	+25.5%	+22.8%
Income tax	46.0	37.6	36.8	+22.5%	+25.1%
Effective tax rate	26.1%	26.7%	25.6%
Net income	130	103	107	+26.5%	+22.0%
Net margin	9.1%	7.3%	7.7%
Diluted EPS	$2.53	$1.97	$1.91	+28.4%	+32.5%

$ 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

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Operating cash flow	289	-2.4	295		-2.0%
Capital expenditure	14.7	15.2	8.3	-3.5%	+76.8%
Free cash flow	274	-17.6	286		-4.3%
Free cash flow margin	19.2%	-1.2%	20.5%
Cash from investing	-23.8	-16.5	-9.3
Cash from financing	-83.2	-233	-85.7
Depreciation and amortisation	32.6	32.1	31.3	+1.6%	+4.2%
Share-based compensation	42.5	46.4	44.6	-8.5%	-4.8%
Buybacks	79.9	85.0	82.1	-6.0%	-2.7%
Diluted shares, weighted	51m	52m	56m	-1.5%	-7.8%
Shares outstanding at period end	51m	52m	55m	-1.4%	-7.8%

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

Balance sheet

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Shareholders' equity	3,594	3,519	3,726	+2.1%	-3.5%
Non-controlling interest	0.6	0.6	0.6	0.0%	0.0%
Debt	25.0	25.0	25.0	0.0%	-0.1%
Operating lease liabilities	83.1	87.9	89.7	-5.5%	-7.3%
Other liabilities	980	942	1,002	+4.0%	-2.2%
Total liabilities and equity	4,683	4,574	4,843	+2.4%	-3.3%
Fixed assets	203	205	199	-0.9%	+2.2%
Goodwill	1,202	1,203	1,209	-0.1%	-0.6%
Intangible assets	353	373	420	-5.4%	-15.9%
Cash and equivalents	965	789	1,239	+22.3%	-22.1%
Other assets	1,960	2,004	1,777	-2.2%	+10.3%
Total assets	4,683	4,574	4,843	+2.4%	-3.3%

Questions

What was Epam Systems' revenue in Q3 FY2026?

Epam Systems (EPAM) reported revenue of $1.4 billion for Q3 FY2026, the quarter ended 30 September 2026, up 2.3% on the same quarter a year earlier.

How much did Epam Systems earn in Q3 FY2026?

Net income for Q3 FY2026 was $130 million, up 22.0% on the year, and diluted earnings per share $2.53.

When did Epam Systems report Q3 FY2026 results?

Epam Systems filed its 10-Q for the quarter ended 30 September 2026 with the SEC on 5 November 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	1,107	1,172	1,195	1,227	1,231	1,211	1,170	1,152	1,157	1,165	1,147	1,168	1,248	1,302	1,353	1,394	1,408	1,400	1,415	1,426
Cost of revenue	727	781	846	827	833	856	809	794	798	834	811	764	868	952	964	983	984	1,012	985	980
Gross profit	380	391	349	400	399	355	361	358	360	331	336	404	380	350	389	411	423	388	430	446
Gross margin	34%	33%	29%	33%	32%	29%	31%	31%	31%	28%	29%	35%	30%	27%	29%	29%	30%	28%	30%	31%
SG&A	191	237	233	198	205	212	194	195	214	198	194	207	217	219	232	235	243	240	245	237
Operating income	166	129	93.0	180	170	120	144	114	122	111	121	177	137	99.3	126	145	149	117	152	176
Operating margin	15%	11%	8%	15%	14%	10%	12%	10%	11%	9%	11%	15%	11%	8%	9%	10%	11%	8%	11%	12%
Pre-tax income	160	106	8.7	191	201	127	150	132	127	124	134	190	137	94.4	124	144	144	121	141	176
Tax rate	11%	16%	-115%	18%	23%	20%	20%	26%	23%	6%	26%	28%	25%	22%	29%	26%	24%	32%	27%	26%
Net income	142	89.7	18.6	156	155	102	120	97.2	97.6	116	98.6	136	103	73.5	88.0	107	109	82.5	103	130
Net margin	13%	8%	2%	13%	13%	8%	10%	8%	8%	10%	9%	12%	8%	6%	7%	8%	8%	6%	7%	9%
Diluted EPS	$2.40	$1.52	$0.32	$2.63	$2.61	$1.73	$2.03	$1.65	$1.66	$1.97	$1.70	$2.37	$1.80	$1.28	$1.56	$1.91	$1.98	$1.52	$1.97	$2.53
Operating cash flow	285	-51.8	77.5	252	186	87.3	89.1	215	171	130	57.0	242	130	24.2	53.2	295	283	-36.4	-2.4	289
Capital expenditure	56.6	23.3	18.2	18.7	21.5	7.9	6.9	3.6	10.0	6.7	4.7	5.0	15.7	9.3	9.8	8.3	14.8	17.9	15.2	14.7
Free cash flow	228	-75.1	59.4	234	165	79.4	82.2	211	161	123	52.3	237	115	14.8	43.4	286	268	-54.2	-17.6	274
Buybacks	n/a	0.0	0.0	0.0	0.0	8.5	41.4	78.5	36.5	121	214	50.0	13.0	160	196	82.1	224	324	85.0	79.9
Shares outstanding	57m	57m	57m	58m	58m	58m	58m	58m	58m	58m	57m	57m	57m	57m	56m	55m	54m	53m	52m	51m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	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 its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. 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.

10-Q for the period ended 30 September 2026, filed 5 November 2026: the filing.