(Reuters) – EPAM Systems forecast first-quarter revenue above Wall Street expectations and beat quarterly results estimates on Thursday, driven by strong demand for its software services as businesses invest in digitizing their operations.
EPAM, which provides IT services ranging from consulting and cybersecurity to product development, has seen an increase in demand from companies looking to automate their businesses and increase investments in AI-driven applications.
The Newtown, Pennsylvania-based company expects to generate revenue in a range of $1.28 billion to $1.29 billion in the first quarter, above analysts’ average estimate of $1.27 billion, according to data compiled by LSEG.
Worldwide IT spending is expected to reach $5.61 trillion in 2025, an increase of 9.8% from a year ago, according to research firm Gartner.
Last week, EPAM’s peer Freshworks forecast annual revenue and profit above Wall Street estimates, betting on growing demand for its enterprise software.
EPAM forecast revenue growth rate to be in the range of 10% to 14% for 2025, compared to analysts’ expectations of 11.4%.
The company reported fourth-quarter revenue of $1.25 billion, beating estimates of $1.21 billion. It posted an adjusted profit per share of $2.84 for the three months ended December 31, compared to analysts’ estimate of $2.75.
The company expects adjusted profit between $2.22 and $2.32 per share for the first quarter compared with estimate of $2.59 per share.
(Reporting by Priyanka.G in Bengaluru; Editing by Vijay Kishore and Leroy Leo)
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