1) Strategy & Leadership
- EPAM's CEO, Balazs Fejes, emphasized the company's commitment to leveraging AI as a transformative force in their operations.
- The company is focusing on three strategic pillars: leading in AI native software engineering, becoming a full-stack AI native organization, and transforming their go-to-market strategy.
- EPAM has joined the OpenAI Partner Network and is committed to training over 10,000 specialists in AI capabilities.

2) Financial & Segment Results
- Q2 2026 revenue reached $1.415 billion, a 4.5% YoY increase, with organic constant currency growth of 3.4%.
- AI native revenues exceeded $160 million, marking the sixth consecutive quarter of double-digit sequential growth and representing over 11% of total revenue.
- Financial Services was the fastest-growing vertical, up 11.5% YoY, driven by AI-led modernization. Life Sciences & Healthcare also grew 8% YoY.
- However, Software & Hi-Tech and Business Information & Media segments declined by 1.3% and 2.1% respectively, primarily due to project ramp downs.

3) Problems / Headwinds
- North America is underperforming, with growth expectations lowered for the second half of the year due to a shift in client spending from traditional services to AI-led modernization.
- The company faces challenges in its go-to-market strategy, particularly in North America, where it is restructuring to better meet client needs.
- Decision-making cycles remain prolonged, influenced by external factors such as the geopolitical climate.

4) Operational or Product Plans
- EPAM is actively working on a multi-quarter commercial transformation to enhance its sales capabilities and client engagement in North America.
- The company is focusing on building a larger sales force and developing domain-led go-to-market motions.
- There is a strong pipeline of AI-led opportunities, although none have been signed yet, with expectations for revenue contributions starting in early 2027.

5) Guidance & Outlook / Investor Angle
- EPAM has revised its 2026 revenue growth guidance to 3.2% to 4.2%, with organic constant currency growth expected to be 2% to 3%.
- GAAP diluted EPS is projected to be between $8.22 to $8.38, reflecting over 14% YoY growth at the midpoint.
- The company expects modest sequential growth in Q3 and flattish revenues from Q3 to Q4, indicating a cautious outlook for the remainder of the year.

Bottom line: EPAM is navigating a challenging environment, particularly in North America, but remains committed to its long-term strategy focused on AI transformation. The company's strong performance in AI native revenues and ongoing operational improvements provide a foundation for future growth, although short-term headwinds may impact results.