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 earnings forecast for the third time this year as businesses spend more to modernize their systems for artificial intelligence, sending shares of the IT consultancy firm 4% higher in premarket trading on Thursday.
Enterprises overhauling their legacy systems in a move towards cloud computing, automation and AI have bolstered demand for services of companies such as EPAM. Rival Cognizant also bumped its full-year profit expectations last month on strong AI-related spending.
EPAM now expects annual adjusted earnings between $11.36 and $11.44 per share, up from its prior range of $10.96 to $11.12 a share. Its revenue is now expected to grow 14.8% to 15.2% in 2025, up from 13.0% to 15.0% forecast previously.
Both the forecasts were above analysts' estimates, according to data compiled by LSEG.
The company has also been benefiting from steady demand across financial services, software and consumer products.
For the third quarter ended September 30, EPAM reported revenue of $1.39 billion, topping expectations of $1.38 billion. Adjusted earnings of $3.08 per share also beat estimates of $3.03.
(Reporting by Arnav Mishra in Bengaluru; Editing by Sahal Muhammed)
