TLDR: EPAM Systems reported robust financial results for the second quarter of 2025, with revenues reaching $1.353 billion, an 18.0% year-over-year increase. The company also surpassed analyst expectations for non-GAAP diluted EPS, which rose to $2.77. Driven by strong organic growth and increasing client demand for AI-led solutions, EPAM has raised its full-year revenue growth outlook to a range of 13.0% to 15.0%.
EPAM Systems, a global leader in digital transformation services and product engineering, announced impressive financial results for the second quarter of 2025, significantly exceeding market forecasts and prompting an upward revision of its full-year revenue outlook. The company’s strong performance is largely attributed to robust organic growth and a strategic focus on artificial intelligence (AI) and cloud technologies.
For the second quarter ended June 30, 2025, EPAM reported revenues of $1.353 billion, marking an 18.0% increase compared to the same period in 2024. This figure surpassed the company’s own Q2 revenue outlook and analyst projections of $1.33 billion. GAAP income from operations stood at $126.5 million, representing 9.3% of revenues, while non-GAAP income from operations reached $202.9 million, or 15.0% of revenues, reflecting a 16.3% increase year-over-year.
Diluted earnings per share (EPS) on a GAAP basis was $1.56, a slight decrease from $1.70 in Q2 2024. However, non-GAAP diluted EPS surged to $2.77, an increase of $0.32 (13.1%) compared to $2.45 in the prior year, comfortably beating the forecasted $2.61. This strong financial showing led to a positive market reaction, with EPAM’s stock climbing 9.05% in pre-market trading to $165 per share.
Looking ahead, EPAM has raised its expected year-over-year revenue growth rate for 2025 to be in the range of 13.0% to 15.0%. The company also anticipates organic constant currency revenue growth between 3.0% and 5.0%. For the full year, GAAP income from operations is projected to be in the range of 9.0% to 10.0% of revenues, and non-GAAP income from operations is expected to be between 14.5% and 15.5% of revenues. Full-year GAAP diluted EPS is now expected to be in the range of $6.48 to $6.64, with non-GAAP diluted EPS projected between $10.96 and $11.12.
Executive commentary highlighted the pivotal role of AI in the company’s growth trajectory. Balazs Fejes, President of Global Business and Chief Revenue Officer at EPAM, stated, “As our clients prioritize their AI-readiness and preparatory actions, they are increasingly turning to us to build out their data and AI foundation. The strength of our client relationships and ecosystem partners, along with our organic growth and AI momentum, positions us extremely well to build on this quarter’s success and progress further.” Arkadiy Dobkin, CEO of EPAM, further emphasized the company’s consistent performance, noting that this quarter marked the third consecutive quarter of sequential organic growth, driven by a focus on ‘AI-led solutions and modernization efforts’ which are deemed critical for future AI adoption.
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As of June 30, 2025, EPAM’s total headcount was approximately 62,050, including about 55,800 delivery professionals. Demonstrating confidence in its future prospects, the company repurchased 1.087 million shares of its common stock for $194.9 million during the quarter.
