TLDR: EPAM Systems, a leader in digital transformation, announced strong third-quarter 2025 results, surpassing analyst expectations for earnings and revenue. The company reported $1.394 billion in revenue, a 19.4% year-over-year increase, and non-GAAP diluted EPS of $3.08. Driven by its focus on AI, EPAM raised its full-year 2025 revenue growth outlook to 14.8%-15.2% and non-GAAP diluted EPS to $11.36-$11.44. The company also authorized a new $1 billion share repurchase plan.
NEWTOWN, Pa. – EPAM Systems, Inc. (NYSE: EPAM), a prominent provider of digital transformation services and product engineering, today unveiled its financial results for the third quarter ended September 30, 2025, demonstrating robust performance that exceeded market forecasts and prompted an upward revision of its full-year outlook. The company’s shares experienced a positive surge in pre-market trading following the announcement.
For the third quarter of 2025, EPAM reported revenues of $1.394 billion, marking a significant 19.4% increase compared to the same period last year. This figure comfortably surpassed analyst consensus estimates, which ranged from $1.37 billion to $1.403 billion. GAAP income from operations stood at 10.4% of revenues, while non-GAAP income from operations reached 16.0% of revenues.
In terms of profitability, the company’s GAAP diluted EPS for the third quarter was $1.91, a decrease of $0.46 year-over-year. However, non-GAAP diluted EPS reached $3.08, outperforming the analyst consensus of $3.03 and aligning closely with some higher estimates.
Balazs Fejes, CEO and President at EPAM, expressed satisfaction with the results, stating, “We are pleased to deliver another quarter of improving year-over-year organic constant currency revenue growth, driven by our deep engineering expertise and focus on helping clients build out their AI foundation and transform themselves into AI-Native organizations.” Fejes further emphasized the company’s strategic direction: “By investing in AI and AI-Native innovation, talent, and partnerships we are accelerating our own transformation, building on top of our core engineering heritage and strengthening our strategic positioning to lead in the future world of AI-Native enterprises.”
Building on this strong performance, EPAM has raised its full-year 2025 guidance. The company now anticipates revenue growth to be in the range of 14.8% to 15.2%, reflecting a 15.0% growth rate at the midpoint, an increase from its previous outlook of 14.0%. Full-year expected GAAP diluted EPS is projected to be between $6.75 and $6.83, while non-GAAP diluted EPS is expected to be in the range of $11.36 to $11.44, exceeding the consensus estimate of $11.14.
EPAM also continued its commitment to returning capital to shareholders, repurchasing $82.1 million of stock during the third quarter. Furthermore, the company announced the establishment of a new share repurchase plan, authorizing up to $1 billion in additional repurchases.
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Looking ahead to the fourth quarter of 2025, EPAM projects revenue to be between $1.38 billion and $1.395 billion, representing an 11.1% growth at the midpoint, with adjusted EPS expected to fall between $3.10 and $3.18.
