EPAM Systems demonstrated a strong return to organic growth and successful integration of acquisitions, significantly expanding its global footprint and capabilities. Despite impressive growth in AI engagements and key verticals, the company faces ongoing profitability pressures due to a challenging pricing environment and geopolitical risks. The outlook remains cautiously optimistic, balancing strategic investments with macroeconomic uncertainties.

Company Guidance

During the earnings call for the fourth quarter and full year 2024, EPAM Systems provided guidance indicating a revenue growth range of 10% to 14% for 2025, with inorganic contributions from recent acquisitions, NEORIS and First Derivative, accounting for approximately 10% of this growth. The company anticipates flat organic revenue growth in the first quarter, followed by sequential improvements throughout the year. On the profitability front, EPAM expects GAAP income from operations to range between 9% and 10%, and non-GAAP income from operations between 14.5% and 15.5% for the full year. The guidance reflects continued investments in GenAI platforms, talent retention, and strategic growth initiatives, with profitability expected to improve in the second half of the year. The company also expects a GAAP diluted EPS of $6.78 to $7.08 and a non-GAAP diluted EPS of $10.45 to $10.75, with a weighted average of 58.1 million fully diluted shares outstanding.

Return to Organic Revenue Growth

In Q4, EPAM reported a mid-single-digit growth year-over-year and sequentially, returning to organic revenue growth for the first time since Q1 of 2023. This was driven by improvements in client sentiments and engagements across all verticals and geographies, especially in AI-related capabilities.

Successful Acquisitions and Expansion

The acquisitions of NEORIS and First Derivative significantly expanded EPAM's global footprint, adding nearly 6,000 employees across Latin America, Canada, Spain, UK, and Ireland. These acquisitions are expected to accelerate EPAM's strategy and improve its market position.

Strong Performance in Key Verticals

Four out of six verticals grew year-over-year, with strong momentum in life sciences, healthcare, software and high tech, and financial services. The Americas and APAC regions led the growth year-over-year.

Growth in AI Engagements

EPAM reported significant traction in GenAI initiatives, with 75% of top country clients engaged. The revenue from AI-native programs reached about $50 million in Q4, reflecting strong growth in early-stage projects.

Record Headcount Growth

EPAM ended Q4 with over 61,200 employees, including significant contributions from recent acquisitions and organic growth. Notably, India became the largest single country delivery location for EPAM, now representing over 10,000 employees.

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Epam Systems (EPAM) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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EPAM Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 01, 2025	2025 (Q1)	2.38 / -	2.46	―	―	―
Feb 20, 2025	2024 (Q4)	2.75 / 2.84	2.75	3.27% (+0.09)
Nov 07, 2024	2024 (Q3)	2.70 / 3.12	2.73	14.29% (+0.39)
Aug 08, 2024	2024 (Q2)	2.26 / 2.45	2.64	-7.20% (-0.19)
May 09, 2024	2024 (Q1)	2.31 / 2.46	2.47	-0.40% (-0.01)
Feb 15, 2024	2023 (Q4)	2.51 / 2.75	2.93	-6.14% (-0.18)
Nov 02, 2023	2023 (Q3)	2.56 / 2.73	3.1	-11.94% (-0.37)
Aug 03, 2023	2023 (Q2)	2.34 / 2.64	2.38	10.92% (+0.26)
May 05, 2023	2023 (Q1)	2.35 / 2.47	2.49	-0.80% (-0.02)
Feb 16, 2023	2022 (Q4)	2.68 / 2.93	2.76	6.16% (+0.17)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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EPAM Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 20, 2025	$258.11	$225.07	-12.80%
Nov 07, 2024	$202.69	$232.92	+14.91%
Aug 08, 2024	$208.17	$191.16	-8.17%
May 09, 2024	$249.20	$181.93	-26.99%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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