EPAM Systems, Inc. (NYSE: EPAM) reported a robust second quarter, achieving revenues of $1.35 billion, an increase of 18% compared to the same period last year. The IT services provider highlighted continued momentum in artificial intelligence (AI)-driven solutions and digital modernization projects. Following this performance, the company has raised its full-year revenue growth forecast to a range of 13% to 15%.
In terms of operations, GAAP income was reported at $126.5 million, representing 9.3% of revenue. Non-GAAP income from operations rose by 16.3% to $202.9 million, accounting for 15% of revenue. While GAAP diluted earnings per share (EPS) fell to $1.56 from $1.70, non-GAAP diluted EPS increased by 13.1% to $2.77.
Strategic Focus on AI-Led Solutions
CEO and President Arkadiy Dobkin attributed the positive results to a third consecutive quarter of sequential organic growth. He emphasized the importance of deep engineering and technology expertise, particularly in AI-led solutions. Dobkin noted that EPAM’s portfolio has “no material exposure to traditional legacy outsourcing services,” which positions the firm favorably within the evolving technology landscape.
President of Global Business and Chief Revenue Officer Balazs Fejes stated that clients are increasingly seeking EPAM’s assistance in enhancing their data and AI foundations. He described the company’s client relationships and ecosystem partnerships as key drivers of growth, further solidifying EPAM’s standing in the market.
Operational performance also showed encouraging signs. Organic constant currency revenue grew by 5.3% year-over-year. However, operating cash flow for the first half of 2025 decreased to $77.4 million, down from $186.9 million the previous year. Cash reserves, including cash, cash equivalents, and restricted cash, amounted to $1.05 billion at the end of the quarter, a reduction from $1.29 billion at the end of 2024. The company has executed a share repurchase program, acquiring 1.09 million shares for $194.9 million, leaving $82.1 million available under its current buyback authorization. EPAM’s total headcount reached approximately 62,050, including 55,800 delivery professionals.
Updated Financial Guidance for 2025
Looking ahead, EPAM has adjusted its expectations for 2025, projecting revenue growth of 13% to 15%. The company anticipates organic constant currency growth between 3% and 5%. GAAP income from operations is expected to fall between 9% and 10% of revenue, while non-GAAP figures are likely to range from 14.5% to 15.5%. The forecast for GAAP diluted EPS stands at $6.48 to $6.64, with non-GAAP projected at $10.96 to $11.12.
For the third quarter of 2025, the company anticipates revenues between $1.365 billion and $1.380 billion, indicating a year-over-year growth of 17.6% at the midpoint. GAAP diluted EPS is expected to range from $1.89 to $1.97, while non-GAAP is projected between $2.98 and $3.06.
Dobkin stressed that EPAM’s consistent growth trajectory reflects its alignment with clients’ AI-readiness initiatives. This positions the company well for sustained momentum throughout the second half of the year.
