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Sep 30
EPAM Q3 2025 Earnings Report
EPAM reported its financial results for the third quarter ended September 30, 2025, demonstrating improved year-over-year organic constant currency revenue growth.
Key Takeaways
EPAM Systems, Inc. delivered a strong third quarter in 2025, with significant revenue growth and solid profitability. The company reported revenues of $1.39 billion, a 19.4% increase year-over-year, and GAAP diluted EPS of $1.91. Non-GAAP diluted EPS reached $3.08, reflecting strong operational performance and strategic investments in AI.
Revenue for Q3 2025 increased by 19.4% year-over-year to $1.39 billion.
GAAP diluted EPS was $1.91, while non-GAAP diluted EPS was $3.08.
Organic constant currency revenue growth improved to 7.1% year-over-year.
The company is accelerating its transformation by investing in AI and AI-Native innovation, talent, and partnerships.
EPAM
EPAM
Forward Guidance
EPAM provided an optimistic outlook for both the fourth quarter and the full year 2025, raising its revenue and EPS expectations. The company anticipates continued growth driven by its strategic focus on AI and digital transformation services.
Positive Outlook
- Fourth quarter 2025 revenue growth expected between 10.5% and 11.7% year-over-year.
- Full year 2025 revenue growth expected between 14.8% and 15.2% year-over-year.
- Fourth quarter 2025 non-GAAP diluted EPS projected between $3.10 and $3.18.
- Full year 2025 non-GAAP diluted EPS projected between $11.36 and $11.44.
- Non-GAAP operating margin for Q4 2025 expected to be between 15.5% and 16.5%.
Challenges Ahead
- GAAP diluted EPS for Q4 2025 expected to be lower than non-GAAP, between $2.00 and $2.08.
- GAAP diluted EPS for full year 2025 expected to be lower than non-GAAP, between $6.75 and $6.83.
- Foreign exchange rates are expected to have a negative impact on revenue growth in Q4 2025 (-2.4%) and full year 2025 (-1.3%).
- Inorganic revenue growth is expected to be negative for Q4 2025 (-4.3%) and full year 2025 (-9.1%).
- GAAP operating margin for Q4 2025 is projected to be lower than non-GAAP, between 10.0% and 11.0%.