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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company determines its business segments and reports segment information in accordance with how the Company’s chief operating decision maker (“CODM”) organizes the segments to evaluate performance, allocate resources and make business decisions. The Company’s CODM is the chief executive officer. The Company manages its business primarily based on the managerial responsibility for its client base and market. As managerial responsibility for a particular client relationship generally correlates with the client’s geographic location, there is a high degree of similarity between client locations and the geographic boundaries of the Company’s reportable segments. In some cases, managerial responsibility for a particular client is assigned to a management team in another region and is usually based on the strength of the relationship between client executives and particular members of EPAM’s senior management team. In such cases, the client’s activity would be reported through the management team’s reportable segment.
Segment results are based on the segment’s revenues and operating profit, where segment operating profit is defined as segment income from operations before unallocated costs. Expenses included in segment operating profit consist principally of direct selling and delivery costs as well as an allocation of certain shared services expenses. Intersegment transactions are excluded from the segment’s revenues and operating profit on the basis that they are neither included in the measure of a segment’s profit and loss results, nor considered by the CODM during the review of segment results. Certain corporate expenses are not allocated to specific segments as these expenses are not controllable at the segment level. Such expenses include certain types of professional fees, certain taxes included in operating expenses, compensation to non-employee directors and certain other general and administrative expenses, including compensation of specific groups of non-production employees. In addition, the Company does not allocate amortization of intangible assets acquired through business combinations, goodwill and other asset impairment charges, stock-based compensation expenses, acquisition-related costs and certain other one-time charges and benefits. These unallocated amounts are combined with total segment operating profit to arrive at consolidated income from operations as reported below in the reconciliation of segment operating profit to consolidated income before provision for income taxes. Additionally, management has determined that it is not practical to allocate identifiable assets by segment since such assets are used interchangeably among the segments.
The Company’s CODM considers the operating results of each segment on a quarterly basis and uses segment operating profit predominantly to assess the performance of each segment by comparing the results of each segment with one another and to historical performance. When combined with certain other financial information, this enables the CODM to make decisions about the reporting structure, allocation of operating and capital resources, and compensation of certain employees.
Segment revenues from external clients and segment operating profit, as well as a reconciliation of segment operating profit to consolidated income before provision for income taxes is presented below:
For the Three Months Ended March 31, 2026
AmericasEurope Total
Segment revenues $795,396 $604,665 $1,400,061 
Less:
Cost of revenues (exclusive of depreciation and amortization)549,905 436,702 986,607 
Selling, general and administrative expenses104,344 80,695 185,039 
Depreciation and amortization expense8,901 4,921 13,822 
Segment operating profit$132,246 $82,347 $214,593 
Unallocated costs:
Stock-based compensation expense(49,919)
Amortization of purchased intangibles(17,718)
Other unallocated costs(30,188)
Income from operations116,768 
Interest and other income, net1,582 
Foreign exchange gain2,298 
Income before provision for income taxes$120,648 
For the Three Months Ended March 31, 2025
AmericasEurope Total
Segment revenues $777,168 $524,524 $1,301,692 
Less:
Cost of revenues (exclusive of depreciation and amortization)550,849 375,463 926,312 
Selling, general and administrative expenses101,518 73,516 175,034 
Depreciation and amortization expense9,573 4,208 13,781 
Segment operating profit$115,228 $71,337 $186,565 
Unallocated costs:
Stock-based compensation expense(48,456)
Amortization of purchased intangibles(17,656)
Other acquisition-related expenses(576)
Other unallocated costs(20,547)
Income from operations99,330 
Interest and other income, net5,814 
Foreign exchange loss(10,727)
Income before provision for income taxes$94,417 
For each reportable segment, selling, general and administrative expenses include the costs of salaries, bonuses, fringe benefits, bad debt, travel, employee relocations, legal and accounting services, insurance, facilities and overhead including operating leases, advertising and other promotional activities.
There were no clients that accounted for more than 10% of total segment revenues during the three months ended March 31, 2026 and 2025. See Note 8 “Revenues” for additional disclosures of the Company’s disaggregated revenues reconciled with the revenues from the Company’s reportable segments.
Geographic Area Information
Long-lived assets presented in the table below include property and equipment, net of accumulated depreciation and amortization, and management has determined that it is not practical to allocate these assets by segment since such assets are used interchangeably among the segments. Physical locations and values of the Company’s long-lived assets are presented below:
As of
March 31,
2026		As of
December 31,
2025
Ukraine$60,382 $59,381 
Belarus44,509 44,483 
United States23,487 26,085 
India18,273 17,365 
Poland11,395 10,947 
Hungary4,180 4,495 
Other 40,600 39,631 
Total$202,826 $202,387 
The table below presents information about the Company’s revenues by client location for the three months ended March 31, 2026 and 2025:
Three Months Ended
March 31,
20262025
United States$711,766 $688,452 
United Kingdom158,519 144,583 
Switzerland114,293 104,850 
Netherlands63,222 46,975 
Germany62,057 51,692 
Other locations290,204 265,140 
Total$1,400,061 $1,301,692