EPAM Systems (EPAM) investor relations material

Strategic transformation and AI positioning

• Reinventing as a global leader in AI transformation services, leveraging top engineering talent to solve complex business and technology challenges and drive profitable growth in the AI era.

• Accelerated internal transformation with a three-year focus on AI-driven recruitment, project staffing, and management, recognized for best use of AI and skills development.

• Launched AI/RUN, a codified go-to-market strategy for AI-native software engineering and business transformation, based on internal experimentation and real-world application.

• Expanded AI-native offerings, including agentic intelligent operations, Empathy Lab for AI-native experiences, and agentic security, while deepening industry verticalization and strategic partnerships.

• Shifted go-to-market approach to integrate consulting and engineering, building domain and vertical expertise into every engagement and transforming sales and marketing motions for an AI-centric environment.

Engineering, talent, and delivery model evolution

• Developed the full stack agentic engineer profile, combining deep engineering culture with AI-native workflows and agent orchestration, scaling through proprietary education and global assessments.

• Proprietary TelescopeAI platform enables sensing, developing, and deploying talent, ensuring rapid staffing of AI-ready engineers and maintaining high client satisfaction.

• Diversified and rebalanced global delivery footprint, reducing concentration in Ukraine and Belarus by 38% since 2021, expanding in India, Latin America, and Western/Central Asia for resilience and flexibility.

• Delivery engine integrates horizontal (cloud, data, product engineering) and vertical (healthcare, financial services, supply chain) expertise, supported by AI-powered systems for risk management and knowledge reuse.

• Regional leadership and local talent pipelines drive client proximity, regulatory alignment, and rapid AI adoption, with notable innovation and resilience in Ukraine and India.

Financial outlook and growth drivers

• Achieved $5.456 billion revenue in 2025, with six consecutive quarters of growth and diversified client base across 55 countries.

• 2026 guidance: 3%-6% organic constant currency revenue growth, 15%-16% non-GAAP operating income margin, and double-digit non-GAAP EPS growth, supported by expanding profitability in India and LatAm.

• Targeting $1.8 billion+ cumulative free cash flow from 2026-2028, with continued investment in AI capabilities, strategic M&A, and share repurchases.

• Focused on capturing high-growth AI native and foundational services, agentic BPO, and AI-enabled managed services, aiming for a return to double-digit organic revenue growth and 16%+ profitability by 2028.

• AI native projects deliver higher profit margins than company average, with pricing models evolving to include output-based and ROI-based contracts as AI adoption scales.