EPAM Systems Q2 2025 Earnings: Revenue Surpasses Estimates at $1.353 Billion, GAAP EPS Falls Short at $1.56

EPAM Systems reported Q2 2025 revenue of $1.353 billion, exceeding estimates, but GAAP EPS fell short at $1.56. The company's non-GAAP EPS rose 13.1% YoY to $2.77. EPAM's strong organic constant currency revenue growth and favorable foreign exchange rate assumptions drove the revenue increase, but rising costs and operational expenses impacted profitability.

Title: EPAM Systems Reports Q2 2025 Revenue Growth, But GAAP EPS Falls Short

EPAM Systems, Inc. (NYSE: EPAM) reported its second-quarter 2025 financial results, showcasing strong revenue growth but a decline in GAAP earnings per share (EPS). The digital transformation services provider reported a revenue of $1.353 billion, marking an 18.0% year-over-year (YoY) increase [2]. This growth was driven by robust organic constant currency revenue growth and favorable foreign exchange rate assumptions. However, the company's GAAP EPS fell to $1.56, down from $1.70 a year ago [2].

Despite the dip in GAAP EPS, EPAM's non-GAAP EPS rose 13.1% YoY to $2.77, reflecting the company's focus on operational efficiency and cost management. The company's operating margin was 15.0% for the quarter, down slightly from 15.2% in the same period last year [2]. The decrease in GAAP operating margin to 9.3% from 10.5% was attributed to rising costs and operational expenses [1].

Arkadiy Dobkin, CEO and President of EPAM, expressed satisfaction with the company's performance, highlighting the importance of deep engineering and technology expertise, particularly in AI-led solutions. Balazs Fejes, President of Global Business and Chief Revenue Officer, noted that clients are increasingly turning to EPAM to build their data and AI foundation, positioning the company well for future growth [2].

EPAM has raised its expected year-over-year revenue growth rate for 2025 to 13.0% to 15.0%. The company also expects GAAP income from operations to be in the range of 9.0% to 10.0% of revenues and non-GAAP income from operations to be in the range of 14.5% to 15.5% of revenues. GAAP diluted EPS is expected to be in the range of $6.48 to $6.64, and non-GAAP diluted EPS is expected to be in the range of $10.96 to $11.12 [2].

During the second quarter, EPAM repurchased 1.087 million shares of its common stock for $194.9 million under its share repurchase program. As of June 30, 2025, the company had $82.1 million remaining under its share repurchase authorization [2].

References:
[1] https://www.investing.com/news/earnings/epam-systems-shares-rise-nearly-4-as-q2-results-beat-expectations-93CH-4175748
[2] https://www.tradingview.com/news/tradingview:b2a34e76add95:0-epam-systems-q2-2025-financial-results/