EPAM Systems Reports Strong Results for Fourth Quarter and Full Year 2025
EPAM Systems, Inc. (NYSE: EPAM), a prominent player in digital and AI transformation, has announced its financial results for the fourth quarter and full year ended December 31, 2025. The press release highlights the company’s robust performance amid an ever-evolving technological landscape, emphasizing its strategic focus on AI and digital transformation initiatives.
1. Fourth Quarter 2025 Highlights
EPAM's fourth quarter results showcased impressive growth, with several key metrics indicating solid financial health:
- Revenue Growth: The company reported revenues of $1.408 billion, reflecting a year-over-year increase of $159.2 million, or 12.8%. On an organic constant currency basis, revenues grew by 5.6% compared to Q4 2024.
- Operational Income: GAAP income from operations was $149.3 million, an increase of $12.7 million, or 9.3%, from $136.5 million in the same quarter last year. Non-GAAP income from operations climbed to $230.0 million, up $21.8 million or 10.5% year-over-year.
- Earnings Per Share (EPS): The diluted earnings per share on a GAAP basis reached $1.98, marking a 10% increase from $1.80 in Q4 2024. Non-GAAP diluted EPS rose to $3.26, reflecting a substantial 14.8% increase compared to the previous year.
2. Full Year 2025 Performance
For the entirety of 2025, EPAM delivered substantial revenue growth, albeit with some challenges in operational income:
- Total Revenues: The full-year revenues amounted to $5.457 billion, a significant increase of $729.1 million, or 15.4%, year-over-year. On an organic constant currency basis, the growth rate was 4.9%.
- Income from Operations: The GAAP income from operations was reported at $520.0 million, decreasing by 4.5% from $544.6 million in 2024. However, the non-GAAP income from operations rose to $831.5 million, a 6.7% increase from $779.2 million in 2024.
- Earnings Per Share: The diluted EPS on a GAAP basis was $6.72, down 14.3% from the previous year's $7.84. Conversely, non-GAAP diluted EPS increased by 5.9% to $11.50, up from $10.86 in 2024.
3. Cash Flow and Other Financial Metrics
EPAM's financial health is further underscored by robust cash flow metrics:
- Operating Cash Flow: Cash provided by operating activities surged to $282.9 million for Q4 2025, compared to $130.3 million in Q4 2024. For the full year, cash flow from operations totaled $654.9 million, up from $559.2 million in 2024.
- Share Repurchase Activity: In Q4 2025, EPAM repurchased 1.16 million shares for $223.5 million, bringing the total repurchases for the year to 3.54 million shares at a cost of $660.6 million. As of December 31, 2025, the company had $776.5 million remaining under its share repurchase authorization.
- Cash Position: As of year-end 2025, EPAM's cash, cash equivalents, and restricted cash totaled $1.301 billion, a slight increase of 0.9% from $1.290 billion at the end of 2024.
- Workforce Expansion: Total headcount reached approximately 62,850, including around 56,600 delivery professionals, marking a 2.7% increase from the previous year.
4. 2026 Outlook
Looking ahead, EPAM has set ambitious targets for 2026:
- Revenue Growth: The company anticipates a year-over-year revenue growth rate between 4.5% and 7.5%. Organic constant currency revenue growth is expected to be in the range of 3% to 6%.
- Income from Operations: GAAP income from operations is projected to be between 10% to 11% of revenues, with non-GAAP income expected to range from 15% to 16%.
- Earnings Guidance: For 2026, EPAM expects GAAP diluted EPS in the range of $7.95 to $8.25, while non-GAAP diluted EPS is anticipated to be between $12.60 and $12.90.
- First Quarter Projections: For Q1 2026, revenues are projected to be between $1.385 billion and $1.400 billion, with GAAP diluted EPS expected in the range of $1.32 to $1.40.
5. Conclusion
In a statement, Balazs Fejes, CEO & President of EPAM, expressed satisfaction with the company's performance, highlighting the successful scaling of AI-native revenues and the company's commitment to innovation, talent development, and strategic partnerships. As EPAM positions itself for further growth in the AI-Native Build era, investors and analysts alike will be keenly watching the company’s trajectory in 2026 and beyond.
EPAM will host a conference call on February 19, 2026, at 8:00 a.m. EST to discuss these results in greater detail.
