NEWTOWN, PA — EPAM Systems, Inc. (NYSE: EPAM) reported a strong second quarter, posting revenues of $1.35 billion, up 18% from a year ago, as the IT services provider saw continued momentum in AI-driven solutions and digital modernization projects. The company also raised its full-year revenue growth forecast to a range of 13% to 15%.
GAAP income from operations was $126.5 million, or 9.3% of revenue, while non-GAAP income from operations rose 16.3% to $202.9 million, representing 15% of revenue. GAAP diluted earnings per share fell to $1.56 from $1.70, but non-GAAP diluted EPS increased 13.1% to $2.77.
CEO and President Arkadiy Dobkin credited the results to a third consecutive quarter of sequential organic growth, reflecting “the critical role of deep engineering and technology expertise, especially in AI-led solutions.” He noted that EPAM’s portfolio has “no material exposure to traditional legacy outsourcing services,” positioning it well in the evolving tech landscape.
President of Global Business and Chief Revenue Officer Balazs Fejes added that clients are increasingly turning to EPAM to strengthen their data and AI foundations, calling the company’s client relationships and ecosystem partnerships key drivers of growth.
Operational and Financial Highlights
- Organic constant currency revenue grew 5.3% year-over-year.
- Operating cash flow for the first half of 2025 fell to $77.4 million from $186.9 million a year earlier.
- Cash, cash equivalents, and restricted cash stood at $1.05 billion at quarter end, down from $1.29 billion at year-end 2024.
- The company repurchased 1.09 million shares for $194.9 million, leaving $82.1 million under its current buyback authorization.
- Total headcount reached approximately 62,050, including 55,800 delivery professionals.
Full-Year 2025 Guidance
EPAM now expects revenue growth of 13% to 15% for the year, with organic constant currency growth of 3% to 5%. GAAP income from operations is forecast between 9% and 10% of revenue, and non-GAAP between 14.5% and 15.5%. GAAP diluted EPS is projected at $6.48 to $6.64, and non-GAAP at $10.96 to $11.12.
Third Quarter Outlook
The company anticipates revenues of $1.365 billion to $1.380 billion, representing 17.6% year-over-year growth at the midpoint. GAAP diluted EPS is expected between $1.89 and $1.97, and non-GAAP between $2.98 and $3.06.
Dobkin emphasized that EPAM’s consistent growth trajectory reflects its ability to align with clients’ AI-readiness initiatives, positioning the company for sustained momentum in the second half of the year.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.