#USA #revenue growth #EPAM Systems #Newtown #Q1 2025

EPAM Systems Reports Strong First Quarter of 2025

EPAM Systems, Inc., a prominent player in digital transformation and product engineering, recently announced its financial performance for the first quarter of 2025, concluding on March 31. The company reported revenues reaching $1.302 billion, an impressive 11.7% increase from the same period last year, reflecting a solid response to the challenges posed by the current macroeconomic environment. This performance underscores EPAM's commitment to excellence in engineering and innovation.

Financial Highlights

In terms of operational figures, the GAAP income from operations stood at 7.6% of revenues, amounting to $99.3 million, a slight decrease of 10.1% compared to $110.5 million in Q1 2024. However, the non-GAAP income from operations saw a modest rise, reaching $175.8 million—an increase of 1.2% from the previous year.

The diluted earnings per share (EPS) reported were $1.28 on a GAAP basis, showing a significant fall of 35% year-over-year, while the non-GAAP diluted EPS decreased by just 2%, landing at $2.41. These figures undoubtedly reflect the dynamic financial landscape EPAM is navigating.

As for cash flow, EPAM generated $24.2 million from operating activities during the first quarter of 2025, notably down from $129.9 million in the same period the previous year. As of March 31, the company reported a cash reserve of $1.179 billion, demonstrating a decrease of 8.7% from the end of 2024.

Full Year and Future Outlook

Looking ahead, EPAM has updated its full-year revenue growth forecast to range between 11.5% and 14.5% for 2025, attributed to a positive trend in organic revenue growth during the early part of the year and revised foreign exchange rate expectations. The company continues to expect significant operational performance, aiming for GAAP income margins of 9.0% to 10.0% of revenues for the year, with non-GAAP margins projected between 14.5% and 15.5%.

In the second quarter, EPAM anticipates revenues to be in the range of $1.325 billion to $1.340 billion, which reflects an estimated growth of 16.2% year-over-year at the midpoint. For the second quarter specifically, GAAP diluted EPS is expected to hover between $1.67 to $1.75.

Insights from Leadership

Arkadiy Dobkin, CEO and President of EPAM, emphasized the company’s ability to adapt by stating, "We reported strong first quarter results amidst a dynamic macroeconomic landscape, which highlights our unique differentiation in supporting our clients through their transformation journeys." He noted that the firm remains committed to engineering excellence, disciplined execution, and AI-native innovation.

Conclusion

EPAM's robust results in Q1 2025 signify not only resilience amidst global uncertainties but also a forward-looking strategy aimed at harnessing innovation to drive growth. As the company embraces evolving technologies and market demands, its operational adjustments and increased revenue outlooks signal a vibrant future ahead for both EPAM and its clientele.

With a total workforce of approximately 61,700 as of March, including 55,600 delivery professionals, the company aims to maintain its competitive edge while making a significant impact across various industries worldwide. EPAM remains a focal point for digital transformation, demonstrating consistent growth and delivering real value to its stakeholders.