IT Services: 2Q26 Preview—Not Much to Get Excited About as Demand Not Improving

研报英文原文证据摘录

IT Services: 2Q26 Preview—Not Much to Get Excited About as Demand Not Improving

st. IT Services—A Lay of the Land Post 1Q;

Downgrade EPAM and GDYN; Upgrade EFOR (Hold)—Expect 2Q results slightly above the midpoint of guidance, with 3Q unlikely to• EFOR (5/29/2026) surprise, and possibly disappoint. No longer disaggregating the Commercial segment raises

concerns over demand trends for staffing. Mgmt does not provide full-year guidance. IT Services—Battling the AI Narrative

EPAM (Hold)—Expect in line 2Q results and a reiteration of full-year guidance given guidance• (II): The Bear Case and Downside Risk

reset last quarter. We have lowered our organic cc growth estimate by -40 bps to 3.6%, due to (3/13/2026)

the challenging demand environment, especially for discretionary.

EXLS (Buy)—Expect low double-digit growth continuing with margins remaining healthy in 2Q. IT Services—2026 Outlook in 10 Bullets•

Revenue guidance likely raised 100 bps on the iMerit acquisition if incorporated. and 25 Slides + Top Picks (12/12/2025)

Genpact (Buy)—Expect 2Q results to be with the upper end of mgmt's guidance range. 2026• IT Services—Early AI-nnings: A Deep Dive

revenue growth guidance of at least +7% y/y cc likely to be reiterated. Expect a clean quarter

into the 3rd Pillar of Disruption (6/28/2024)

with mgmt commentary focused on IP build-out.

GDYN (Hold)—Expect 2Q results in line and full-year guidance reiterated given the large +6-13%•

range. We have lowered our 2026 revenue growth estimate by -30 bps to +6.8% y/y as demand

environment remains challenging and visibility remains low.

GIB (Hold)—Anticipate organic growth to remain challenged with Europe headwinds intact.•

With a new CEO in place, we expect to hear mgmt's current evaluation of the business and