Brian Bergen

Brian Bergin asked about the headwind from the NEORIS large client decline on Q1 year-over-year growth and any bill day dynamics to consider for the first quarter. He also requested an update on EPAM's pyramid and global delivery optimization efforts and expectations for billable engineering resource additions in 2026.

Answer

CFO Jason Peterson stated that the NEORIS client decline represents approximately a 100 basis point impact on Q1 organic constant currency growth. He noted that fewer bill days from Q4 to Q1 affect profitability and revenue, potentially offset by lower vacation. Mr. Peterson also mentioned improved utilization in Q4 (adjusted for vacation), continued focus on reducing bench through cost optimization, and improving profitability in growing geographies. CEO Balazs Fejes added that pyramid optimization, including onboarding juniors, will continue throughout 2026 to achieve a healthier and more sustainable delivery organization.

Brian Bergin asked about the specific headwind to Q1 year-over-year growth from the large NEORIS client's sequential decline and any bill day dynamics affecting the Q1 growth guide. He also sought an update on EPAM's pyramid and global delivery optimization efforts, including expectations for billable engineering resource additions in 2026.

Answer

Jason Peterson, CFO, stated that the NEORIS client's decline would represent approximately a 100 basis point headwind to Q1 organic constant currency growth. He noted fewer bill days from Q4 to Q1, with potentially lower vacation offsetting some impact. Regarding workforce optimization, Mr. Peterson highlighted improved utilization (adjusted for vacation) from Q3 to Q4, reduced bench, and better cost outcomes with improving profitability in Western/Central Asia, Eastern Europe, and India. Balazs Fejes, CEO and President, added that EPAM will continue optimizing its pyramid throughout 2026, building on the onboarding of juniors in Q4 2025 to achieve a healthier and more sustainable delivery organization.

Brian Bergen noted that Capital Markets appears to be back on track and asked for comments on the loan syndication area and the latest demand trends in non-traditional verticals, inquiring if the underlying backdrop in these areas is as healthy as banking or more mixed. He also asked about prospective banking client conversations in advance of the issuer solutions acquisition, seeking updated views on potential pipeline opportunities and any incremental opportunities arising from competitors' challenges to move quickly post-close.

Answer

CEO Stephanie Ferris confirmed that Capital Markets loan syndication is back on track as expected, with no significant negative trends anticipated for the end of the year. She stated that demand in non-traditional verticals, including private credit, remains healthy and strong. Regarding the issuer solutions acquisition, she expressed continued excitement about cross-sell opportunities to the existing client base, positive feedback on the product and team, and bullishness on the potential for AI enablement across the increased volume of accounts and transactions from credit, debit, and core systems. She looks forward to integrating the business and leveraging its modernization program.

Brian Bergen asked for comments on the Capital Markets segment's performance, specifically in the loan syndication area and non-traditional vertical demand, and whether the underlying backdrop in these areas is as healthy as banking or more mixed. He also inquired about how prospective banking client conversations are evolving in advance of the issuer solutions acquisition, seeking updated views on potential pipeline opportunities and incremental opportunities amid others' challenges post-close.

Answer

CEO Stephanie Ferris confirmed that capital markets loan syndication is back on track as expected, with no significant negative trends. She stated that non-traditional markets, such as private credit, remain strong and healthy, with demand similar to banking. Regarding the issuer solutions acquisition, she expressed excitement about cross-sell opportunities to the existing client base post-close, noting positive feedback on the product and team. She highlighted the bullish outlook on leveraging the increased account and transaction volume (across credit, debit, and cores) for AI enablement and agentic commerce, as well as the potential of the modernization program.

In a follow-up, Brian Bergen asked if CINT has observed a trend of clients attempting to implement GenAI themselves, finding it too complex, and subsequently returning to CINT for assistance. He also questioned if this trend differed between design-focused and software development activities.

Answer

CEO Cesar Gon responded that CINT encounters a mix of client strategies: some are wary of the complexity, while others aim to build in-house AI capabilities. He emphasized that CINT has value propositions for both scenarios, either by acting as a full-stack partner or by helping clients internalize AI skills using the CINT Flow platform. He noted that Flow is designed to upskill both technical and non-technical professionals, enabling broad AI adoption within a client's organization.