Industry ChallengesThe pricing environment remains challenging, with clients still heavily focused on costs.
Margin ContractionA focal point of earnings was EPAM guiding a -150bps adjusted operating margin contraction in 2025 at the midpoint of guidance, which worried investors.
Operating MarginThe weak adjusted operating margin outlook signals that 2025 is likely a transition year for the company as it digests acquisitions and invests ahead of demand and new technologies like GenAI.