EPAM Systems Reports Strong Q3 Performance with Optimistic Outlook
EPAM Systems, Inc. (NYSE: EPAM), a leader in digital transformation and product engineering services, has released its financial results for the latest quarter. The company's third-quarter revenues reached an impressive $1.394 billion, marking a significant increase of 19.4% compared to the previous year.
Financial Highlights
In the third quarter, EPAM achieved a GAAP income from operations of 10.4% of total revenues, with a non-GAAP income of 16.0%. Despite seeing diluted earnings per share (EPS) on a GAAP basis decline by $0.46 to $1.91, the non-GAAP diluted EPS only fell by $0.04, landing at $3.08.
Throughout this period, the company reinforced its commitment to stockholder returns by repurchasing $82.1 million in shares and reaffirming a new share repurchase plan for up to $1 billion in future buybacks.
Revenue Growth Expectations and Future Projections
EPAM has raised its full-year revenue growth forecast for 2025 to between 14.8% and 15.2%. This projections highlights a robust year-over-year growth rate estimated at 15.0%. The anticipated growth reflects EPAM’s ability to adapt and thrive in evolving market conditions, driven by its expertise in artificial intelligence (AI) and digital transformation.
Moreover, EPAM’s outlook for GAAP diluted EPS has been revised to a range between $6.75 and $6.83, while the non-GAAP diluted EPS is projected to be in the vicinity of $11.36 to $11.44.
Operational Metrics and Employee Growth
In terms of operational metrics, the cash provided by operating activities for the first nine months of 2025 stood at $372.0 million, contrasted against $428.9 million for the same timeframe in 2024. As of September 30, 2025, the company reported cash reserves of $1.244 billion, which is a decrease relative to the previous year.
As of the end of September, EPAM’s total workforce was about 62,350 employees, including roughly 56,100 professionals tasked with delivery, reflecting a modest 0.5% increase since June 2025.
CEO Insights on AI Integration
CEO Balazs Fejes commented on the results saying, “We are thrilled to report another quarter demonstrating considerable year-over-year organic constant currency growth, propelled by our profound engineering skills and commitment to assisting clients in embedding AI into their core operations.”
He added, “By channeling resources towards AI and embracing innovative solutions, we are fortifying our capabilities to lead in the advancing landscape of AI-driven enterprises.”
Looking Ahead: Q4 and Full Year Strategy
For the fourth quarter, EPAM anticipates revenue in the range of $1.380 billion to $1.395 billion,which would reflect an 11.1% year-over-year growth rate at the midpoint of the forecast. The expected growth on a constant currency basis points towards a 4.4% increase.
Additionally, for the full year, the anticipated GAAP income from operations percentage is now forecasted to range from 9.4% to 9.7% of total revenues, while non-GAAP figures are expected between 15.0% and 15.3% of revenues.
Conclusion
In summary, EPAM Systems, Inc. continues to demonstrate solid financial performance and a clear trajectory for growth amid changing market trends. The revisions in revenue expectations and the steady investment in artificial intelligence not only reinforce the company’s competitive positioning but also pave the way for enhanced long-term value for shareholders.
Frequently Asked Questions
What are the highlights of EPAM’s Q3 financial results?
EPAM reported Q3 revenues of $1.394 billion, with a year-over-year growth of 19.4%, and plans to repurchase up to $1 billion in shares.
What is the revised outlook for EPAM in 2025?
The company has raised its revenue growth forecast for 2025 to between 14.8% and 15.2% and increased diluted EPS expectations.
How is EPAM addressing the impact of AI?
EPAM is investing in AI and innovation to help clients enhance their digital footprints, ensuring they transition into AI-native organizations.
What were the operational metrics reported by EPAM for 2025?
The company reported $372 million in cash from operating activities during the first nine months and a total headcount of approximately 62,350 employees.
When will EPAM conduct its conference call to discuss the results?
EPAM will host a conference call to review its financial results at 8:00 a.m. ET. Interested parties are encouraged to join via the official EPAM website.
