On August 6, EPAM Systems Inc fell 20.42% in regular trading, trading at $91.67/share, with turnover of $47.23 million. The sharp decline was triggered by the company's full-year guidance that broadly disappointed investors despite a Q2 earnings beat.
EPAM reported Q2 adjusted EPS of $3.38, exceeding the consensus estimate of $3.14 by approximately 7.6%, while revenue of $1.415 billion also topped the $1.407 billion estimate, representing a 22% year-over-year increase. However, the company's full-year adjusted operating margin guidance of 15.5% to 16.0% fell below investor expectations, and full-year revenue growth of just 3.2% to 4.2% signaled a sharp deceleration. Additionally, Q3 revenue guidance came in below market estimates.
The selloff reflects broader concerns flagged by analysts in recent months. Morgan Stanley had previously warned of weaker discretionary spending by clients, while Jefferies downgraded the stock to Hold in May. Despite strategic AI partnerships with OpenAI and Anthropic, institutional sentiment toward EPAM's growth sustainability remains cautious, amplifying the negative reaction to forward guidance.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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