(Reuters) -EPAM systems have increased its annual income and profit forecasts on Thursday, encouraged by a strong demand for its software services, because companies continue to invest heavily in artificial intelligence technologies.
Shares of the company, which offers a wide range of IT services, including consultancy, cloud and AI transformation and software engineering, rose more than 5% premarket-trade after it also had estimates for the results of the second quarter at the top.
Despite worldwide economic tensions, companies still spend on software services to perform their AI offer and integrate AI within their activities, which stimulates the demand for EPAM.
EPAM saw a strong demand from customers in industries such as financial services, software, health care and consumer goods in the quarter, placing income increases in the most important vertical industry, as well as in different regions.
“Because our customers give priority to their AI-ready and preparatory actions, they are increasingly turning to us to build their data and AI Foundation,” said Chief Revenue Officer Balaz’s Fejes, who will take over as CEO from September.
Newtown, Pennsylvania-featured Epam now expects annual revenue growth between 13% and 15%, an increase in the earlier prediction of 11.5% to 14.5%. Analysts expected on average that the turnover of 2025 would rise by 13.4%, according to data collected by LSEG.
EPAM projected adjusted profit per share in the range from $ 10.96 to $ 11.12 for the year, compared to the earlier prediction of $ 10.70 to $ 10.95. Analysts estimate $ 10.85 per share.
The sales forecast of the third quarter of the company from $ 1.37 billion to $ 1.38 billion also rose above estimates. The adjusted profit is expected to be within the range of $ 2.98 to $ 3.06 per share, also for market expectations.
For the second quarter ending on June 30, the turnover of EPAM increased by 18% to $ 1.35 billion, which defeated the estimates of $ 1.33 billion. Excluding one -off items, the profit per share was $ 2.77, above estimates of $ 2.61.
(Reporting by Deborah Sophia in Bengaluru; Edit by Maju Samuel)
