#United States #AI Transformation #EPAM Systems #Newtown #Q4 2025

Overview of EPAM's 2025 Financial Performance

EPAM Systems, Inc., a leader in digital and AI transformation, declared its financial results for the fourth quarter and full year 2025 on February 19, 2026. The company showcased a remarkable momentum in revenue growth, especially in AI-native operations, reflecting its strategic focus on technology innovation and client support.

Fourth Quarter Highlights

In the fourth quarter, EPAM reported revenues of $1.408 billion, marking a 12.8% increase year-over-year. Non-GAAP income from operations reached $230 million, representing a 10.5% rise compared to the same period in 2024. Notably, the company’s GAAP dilutive EPS climbed to $1.98, a 10% growth from last year's fourth quarter.

Key financial metrics include:

• - Revenues: $1.408 billion
• - GAAP Income from Operations: $149.3 million
• - Non-GAAP Income from Operations: $230 million
• - GAAP Diluted EPS: $1.98
• - Non-GAAP Diluted EPS: $3.26

This robust performance underscores EPAM's strategic execution and the effectiveness of its business transformation initiatives aimed at enhancing AI capabilities.

Full Year Performance

For the entirety of 2025, EPAM reported total revenues of $5.457 billion, up 15.4% compared to 2024. Despite facing challenges such as rising operational costs, the company managed to maintain a strong operational benchmark. A slight decrease was observed in the GAAP income from operations to $520 million, down 4.5% compared to the prior year. In contrast, the Non-GAAP income from operations increased by 6.7% to $831.5 million.

Full year metrics included:

• - Full Year Revenues: $5.457 billion
• - GAAP Income from Operations: $520 million
• - Non-GAAP Income from Operations: $831.5 million
• - GAAP Diluted EPS: $6.72
• - Non-GAAP Diluted EPS: $11.50

Strategic Focus and Future Outlook

CEO Balazs Fejes expressed satisfaction with the company’s sustained performance, emphasizing EPAM's commitment to driving innovation in AI and enhancing operational excellence. The management insists that investments in talent development and strategic partnerships will be pivotal for maintaining competitive advantage as the company transitions into an increasingly AI-driven market landscape.

Looking ahead, EPAM projects a revenue growth range of 4.5% to 7.5% for 2026, supported by a targeted increase in AI-native revenues. For the upcoming first quarter, the anticipated revenues lie between $1.385 billion and $1.400 billion, still promising a year-over-year growth around 7%.

The full year guidance also indicates expected GAAP diluted EPS ranging from $7.95 to $8.25, with non-GAAP diluted EPS expected between $12.60 and $12.90. These forecasts reflect a cautious optimism amidst fluctuating market conditions.

Conclusion

EPAM Systems' impressive financial outcomes for 2025 signify not just numerical success but also a strong alignment with industry trends towards AI and digital transformation. By focusing on these core areas, EPAM continues to position itself as a formidable player in the global technology landscape, providing cutting-edge solutions to its clients. Investors and stakeholders can anticipate a continuing rise in the company’s transformation journey as it embraces new technologies and methodologies.