EPAM Systems, Inc. (NYSE: EPAM), a prominent player in digital transformation and product engineering, announced its financial results for the third quarter of 2025, reporting robust revenue growth despite a decline in profit margins. The company achieved revenues of $1.394 billion, marking a significant year-over-year increase of $226.8 million, or 19.4%. This growth reflects EPAM's commitment to advancing its technological capabilities and assisting clients in becoming AI-Native organizations.

2. Key Financial Highlights

Revenue Growth

Total Revenues: EPAM's revenues surged to $1.394 billion, which represents a 19.4% increase from the same period in 2024. When adjusted for organic constant currency, the revenue growth stands at 7.1%.

Profitability Metrics

GAAP Income from Operations: The company reported a GAAP income from operations of $144.9 million, a decline of 18.1% compared to $177.0 million in Q3 2024.

Non-GAAP Income from Operations: Non-GAAP income remained stable at $222.8 million, slightly down from $222.9 million year-on-year.

Earnings Per Share

GAAP EPS: Diluted earnings per share on a GAAP basis decreased to $1.91, down 19.4% from $2.37 in Q3 2024.

Non-GAAP EPS: The non-GAAP diluted EPS also saw a minor decline to $3.08, down 1.3% from $3.12 in the same quarter last year.

Cash Flow and Share Repurchase

Operating Cash Flow: Cash provided by operating activities reached $372.0 million during the first nine months of 2025, contrasting with $428.9 million for the same period in 2024.

Share Repurchase Program: In Q3, EPAM repurchased 493,000 shares for $82.1 million, utilizing the full $500 million authorized under its share repurchase program. A new program for $1.0 billion has been approved by the Board of Directors to continue stock buybacks.

3. Full-Year and Fourth Quarter Outlook

Revised Revenue Projections

EPAM has raised its full-year revenue projections, now expecting revenues to be between $5.430 billion and $5.445 billion, which represents a year-over-year growth rate of 15.0% at the midpoint. This is an upgrade from the previous estimate of 14.0%.

Organic Constant Currency Growth: The company anticipates a growth rate of 4.6% on an organic constant currency basis, up from 4.0%.

Earnings Expectations

For the full year, EPAM expects:

GAAP Income from Operations: To be between 9.4% and 9.7% of revenues.

Non-GAAP Income from Operations: Projected to be between 15.0% and 15.3% of revenues.

GAAP Effective Tax Rate: Approximately 25.0% and a non-GAAP effective tax rate of 24.0%.

EPS Projections: GAAP diluted EPS is expected to be in the range of $6.75 to $6.83, while non-GAAP diluted EPS is projected to be between $11.36 and $11.44.

For the fourth quarter, EPAM anticipates revenues between $1.380 billion and $1.395 billion, reflecting an 11.1% year-over-year growth rate at the midpoint.

4. Strategic Positioning in AI and Digital Transformation

Balazs Fejes, CEO and President of EPAM, expressed satisfaction with the company’s performance, attributing growth to its engineering expertise and focus on AI initiatives. "By investing in AI and AI-Native innovation, we are accelerating our own transformation," he stated, highlighting EPAM's strategic positioning to lead future developments in AI-Native enterprises.

5. Workforce and Business Operations

As of September 30, 2025, EPAM's total headcount was approximately 62,350, including about 56,100 delivery professionals, reflecting a slight increase from the previous quarter.

6. Conclusion

EPAM Systems, Inc. continues to demonstrate resilience and adaptability in an evolving technological landscape. With a solid revenue performance and an optimistic outlook, the company is well-poised to leverage its engineering strengths and AI capabilities to drive future growth. Investors and stakeholders will be closely watching the upcoming conference call for further insights into the company’s strategic direction and operational advancements.

Original press release