EPAM Systems' Q2 Growth: Revenue Surge and Future Outlook

Quarterly Performance Overview

EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, recently announced a robust performance for the second quarter. The company's revenue reached $1.353 billion, marking an impressive year-over-year increase of 18.0%. This growth is attributed to strong organic growth in constant currencies.

Operational Highlights

In terms of profitability, the company reported GAAP income from operations at 9.3% of revenues, with non-GAAP income from operations significantly higher at 15.0%. The GAAP diluted EPS was $1.56, reflecting a decrease of $0.14 from the prior year, contrasting with a non-GAAP diluted EPS of $2.77, which showed a year-over-year increase of $0.32.

Positive Revenue Outlook for 2025

Due to the solid performance in Q2, EPAM has raised its revenue growth outlook for the fiscal year 2025 to between 13.0% and 15.0% year-over-year. This revision comes amidst favorable organic growth and more favorable foreign exchange rate assumptions. The company expects the organic constant currency growth rate for the full year to be between 3.0% and 5.0%. EPAM's leadership is confident that its strategic positioning and deep engineering expertise will yield further growth in the evolving landscape of AI-led solutions.

Leadership Insights

Arkadiy Dobkin, CEO and President of EPAM, expressed satisfaction with the company's consistent organic growth, noting the importance of their engineering and technological capabilities amid a rapidly changing market. Balazs Fejes, President of Global Business and Chief Revenue Officer, echoed these sentiments, highlighting the growing client demand for data and AI-focused solutions.

Financial Metrics and Stock Performance

During the first half of 2025, EPAM reported cash provided by operating activities at $77.4 million. Meanwhile, cash and cash equivalents totaled approximately $1.046 billion as of June 30, representing a decrease from previous reporting periods.

Throughout the second quarter, the company repurchased 1.087 million shares at a total cost of $194.9 million, demonstrating a commitment to returning value to its shareholders. As of the same date, EPAM's total headcount was approximately 62,050 employees, which includes a slight increase in delivery professionals.

Projected Performance for Third Quarter 2025

For the third quarter, EPAM expects revenues to fall between $1.365 billion and $1.380 billion, indicating a year-over-year growth of around 17.6%. The anticipated GAAP income from operations will be between 10.0% to 11.0% of revenues.

Conclusion

EPAM Systems, Inc. is strategically positioned for continued growth in 2025. With its strong financial performance in Q2 and a forward-looking management approach, the company is set to capitalize on industry changes and enhance its global presence in digital transformation services.

Frequently Asked Questions

What was EPAM's revenue for the second quarter of 2025?

EPAM reported revenues of $1.353 billion for the second quarter of 2025, reflecting an 18.0% increase year-over-year.

What are the projected revenue growth rates for 2025?

The company anticipates revenue growth to be between 13.0% and 15.0% for 2025.

How did EPAM's earnings per share change compared to the previous year?

EPAM's GAAP diluted EPS decreased by $0.14 to $1.56, while its non-GAAP diluted EPS increased by $0.32 to $2.77 compared to the previous year.

What initiatives is EPAM focusing on for AI solutions?

EPAM is emphasizing its engineering capabilities in developing AI-led solutions to meet the evolving demands of its clients.

When is the next quarterly report expected?

EPAM will provide its third-quarter financial results and updates in its upcoming quarterly report, scheduled for October 2025.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

Contact Logan Wright privately here. Or send an email with ATTN: Logan Wright as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.