EPAM Shares Plunge 11% as Weak Demand Triggers Revenue Forecast Cut

Key Facts

Amid rising caution regarding corporate IT spending, EPAM Systems announced on Thursday a cut to its annual revenue forecast. This move reflects a clear slowdown in demand for the company's software services, raising concerns about growth sustainability within the sector. According to reports, markets reacted sharply to the announcement, with shares dropping 11% in premarket trading.

The downward revision is driven by weak enterprise demand, which is currently overshadowing previous optimism linked to artificial intelligence technologies. Based on available data, the reduction in budgets for digital and software services has become a broader trend in the current business environment, placing immediate selling pressure on EPAM shares following the financial update.

With real-time price data currently unavailable, traders are monitoring technical support levels following this downward gap. Markets are also looking ahead to significant upcoming US economic data, including the Core PCE Price Index, which could influence overall risk appetite across the technology and software services sectors.