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EPAM Systems Reports Q2 2025 Results and Raises Full Year Revenue Outlook

On August 7, 2025, EPAM Systems, Inc., a leading digital transformation and product engineering company, disclosed its impressive financial results for the second quarter of 2025. The company reported revenues of $1.353 billion, marking an 18% increase compared to the previous year. This growth reflects a solid performance across their client portfolio, notably in areas related to artificial intelligence (AI) and technological modernization efforts.

CEO Arkadiy Dobkin expressed satisfaction with EPAM's growth strategy. He noted, “We’re pleased with another strong quarter of sequential organic growth—our third in a row—marking a return to greater consistency in our performance.” Dobkin highlighted the company's commitment to deep engineering and technology expertise as pivotal for addressing the complex challenges companies face during AI adoption.

Financial Highlights

• - Revenue: EPAM's revenue for Q2 2025 was $1.353 billion, an increase of $206.8 million or 18% year-over-year.
• - GAAP Income from Operations: This figure reached $126.5 million, up 4.9% from $120.6 million in Q2 2024.
• - Non-GAAP Income: The non-GAAP income from operations jumped to $202.9 million, representing a 16.3% increase.
• - Earnings Per Share (EPS): The diluted EPS on a GAAP basis stood at $1.56, down 8.2%, while the non-GAAP diluted EPS rose by 13.1% to $2.77 a share.

Operational Insights

The company provided insights into its robust cash flow, with $77.4 million generated from operating activities in the first half of 2025. However, cash reserves saw a decline with total cash and equivalents reported at $1.046 billion, a decrease from $1.290 billion at the end of the previous year.

EPAM's share repurchase activities indicate a strategic move to enhance shareholder value, having bought back 1.087 million shares totaling approximately $194.9 million under its repurchase program. The company maintains a strong workforce, with approximately 62,050 employees as of June 30, 2025.

Revised Outlook for 2025

For the full year 2025, EPAM has adjusted its revenue growth expectations. The new anticipated rate is between 13% and 15%, with a consistent organic growth projected around 3% to 5%. Key financial expectations include:

• - GAAP Income from Operations: Expected to be around 9.0% to 10% of revenues.
• - Non-GAAP Income: Projected in the range of 14.5% to 15.5% of revenues.
• - Effective Tax Rate: The GAAP rate is expected at approximately 26%, while the non-GAAP effective tax rate is anticipated at around 24%.
• - GAAP Diluted EPS: Expected to range between $6.48 and $6.64, with non-GAAP diluted EPS projected at $10.96 to $11.12.

In addition, the forecast for Q3 2025 anticipates revenues between $1.365 billion and $1.380 billion, reflecting an impressive year-over-year growth rate of around 17.6%.

Conference Call and Investor Relations

For those interested in a deeper understanding of these results, EPAM will host a conference call on August 7, 2025, at 8:00 a.m. EDT to discuss their financial outcomes in detail. This event can be accessed via a live webcast on their Investor Relations page.

About EPAM Systems

Founded in 1993, EPAM Systems, Inc. has grown into a leading provider of digital transformation services, leveraging over three decades of engineering experience to meet clients’ evolving needs in an increasingly digital world. The firm’s strategies encompass leveraging AI and innovative technologies to enhance business operations globally.

For more information, please visit www.epam.com or connect with EPAM on LinkedIn. The company has gained significant recognition, including its title as one of the Fortune 1000 and highlights from Glassdoor as a most loved workplace.

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