EPAM Systems, Inc. (NYSE: EPAM) reported impressive financial performance for the first quarter ended March 31, 2025, marked by robust revenue growth and a raised full-year revenue outlook. The company’s quarterly revenues reached $1.302 billion, representing an 11.7% increase year-over-year, or an organic constant currency revenue growth of 1.4% compared to Q1 2024. This strong revenue momentum underscores EPAM’s strategic focus on engineering excellence, disciplined execution, and AI-native innovation, which continues to drive significant client transformation journeys.
Financial Highlights for Q1 2025: - GAAP income from operations was \(99.3 million, or 7.6% of revenues, with a slight decline of 10.1% year-over-year. - Non-GAAP income from operations grew marginally by 1.2% to \)175.8 million, equating to a 13.5% margin. - GAAP diluted earnings per share (EPS) was \(1.28, down 35.0% from \)1.97 in Q1 2024. - Non-GAAP diluted EPS was \(2.41, slightly down 2.0% year-over-year. - Cash provided by operating activities was \)24.2 million, a decrease from \(129.9 million in the prior year period, while cash and restricted cash totaled \)1.179 billion as of March 31, 2025.
The company repurchased 796,000 shares of common stock worth \(160.0 million during the quarter, with \)277.0 million remaining authorized for repurchases. Total headcount increased slightly to 61,700 employees, including 55,600 delivery professionals.
Forward-Looking Outlook: - For full year 2025, EPAM raised its expected revenue growth range to 11.5% to 14.5% year-over-year, with organic constant currency revenue growth projected between 2.0% to 5.0%. - GAAP income from operations is expected to range between 9.0% to 10.0% of revenues, with non-GAAP margins targeted at 14.5% to 15.5% of revenues. - The GAAP effective tax rate is estimated at 25.0%, while non-GAAP is projected at 24.0%. - GAAP diluted EPS is forecasted between \(6.78 to \)7.03, and non-GAAP diluted EPS between \(10.70 to \)10.95, on an anticipated 56.5 million weighted average diluted shares outstanding.
For the second quarter of 2025, EPAM expects revenues in the range of \(1.325 billion to \)1.340 billion, reflecting a robust 16.2% year-over-year growth at the midpoint and 3.8% organic constant currency growth. GAAP and non-GAAP operational margins are projected to persist within historical ranges.
This positive outlook and solid quarter results reflect consistent themes from EPAM’s prior earnings calls, emphasizing sustained momentum driven by cloud transformation, AI-driven innovation platforms such as EPAM AI/RUN™, and strategic investments in global digital engineering capabilities. CEO Arkadiy Dobkin highlighted, “By staying anchored in engineering excellence, disciplined execution and AI-native innovation, we’ve continued to build sequential momentum and deliver year-over-year organic growth.”
EPAM’s commitment to its $100 million humanitarian support initiative in Ukraine and its strategic repositioning in response to geopolitical challenges also highlight its resilient and socially responsible business approach in a complex global environment.
As a globally recognized leader added to the S&P 500 and Forbes Global 2000 in 2021, and acknowledged as a top IT services company by Fortune 1000 and IDC MarketScapes, EPAM’s performance and projections position the company strongly within the digital transformation ecosystem in 2025 and beyond.
Source document and detailed filing: EPAM Q1 2025 8-K Report