EPAM Systems Inc (EPAM) experienced a significant pre-market plunge of 5.58% on Thursday, following the release of its first-quarter 2026 financial results and second-quarter outlook.
The company reported strong Q1 performance with revenue of $1,400 million, beating the Ibes estimate of $1,395 million. Additionally, EPAM's Q1 adjusted EPS came in at $2.86, surpassing the estimated $2.75, while adjusted income from operations reached $200.7 million versus the $195.7 million expectation.
However, investor sentiment turned negative as EPAM's Q2 revenue outlook of $1,400-1,415 million fell short of the Ibes estimate of $1,426 million. This weaker-than-expected guidance for the upcoming quarter appears to be the primary driver behind the pre-market sell-off, overshadowing the positive Q1 results.