Software provider EPAM raises annual forecasts, announces CEO change
Figurines with computers and smartphones are seen in front of EPAM logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration
(Reuters) -EPAM Systems raised its annual revenue and profit forecasts on Thursday, helped by steady enterprise demand for its IT consulting services, sending its shares up around 10% in premarket trading.
The company also said its founder and CEO Arkadiy Dobkin will transition to executive chairman on September 1, and revenue chief Balazs Fejes will take over as chief executive.
EPAM's broad portfolio of consulting services helped it navigate a tough spending environment as enterprises pull back on non-essential tech projects.
Larger rivals such as Accenture and IBM have been hit by federal deal cancellations as President Donald Trump's administration tries to curb government spending.
The Newtown, Pennsylvania-based EPAM expects 2025 revenue growth in the range of 11.5% to 14.5%, up from the previous range of 10% to 14%.
EPAM expects full-year adjusted earnings per share in the range of $10.70 to $10.95, compared with its prior forecast of $10.45 to $10.75.
The company reported first-quarter revenue of $1.30 billion, beating estimates of $1.28 billion, according to data compiled by LSEG.
It posted an adjusted profit per share of $2.41 for the three months ended March 31, compared with estimates of $2.27 per share.
The company also forecast second-quarter revenue and adjusted profit per share above estimates.
EPAM had bought FD Technologies' consulting unit in late 2024, in a bid to strengthen its presence in artificial intelligence-driven financial services.
(Reporting by Meghana Khare in Bengaluru; Editing by Sahal Muhammed)
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