EPAM Reports Mixed 2025 Results Amid AI Push
Event summary
- EPAM reported $5.457 billion in full-year 2025 revenue, up 15.4% YoY, but GAAP EPS fell 14.3% to $6.72.
- Q4 2025 revenue hit $1.408 billion, a 12.8% YoY increase, with non-GAAP EPS up 14.8% to $3.26.
- Company repurchased $660.6 million in shares during 2025, with $776.5 million remaining under authorization.
- 2026 revenue growth forecasted at 4.5%–7.5%, with organic constant currency growth at 3%–6%.
- Headcount grew 2.7% to 62,850, with 56,600 delivery professionals as of December 31, 2025.
The big picture
EPAM's 2025 results reflect a mixed performance, with strong revenue growth offset by declining GAAP EPS. The company's focus on AI transformation and strategic partnerships aims to strengthen its position in the competitive digital transformation market. However, geopolitical risks and slower projected revenue growth in 2026 pose challenges to its long-term strategy.
What we're watching
- AI Revenue Scaling
- How EPAM's AI-native revenue growth will impact its strategic positioning in the AI-Native Build era.
- Geopolitical Risks
- Whether ongoing geopolitical instability in Ukraine and surrounding regions will affect operations and profitability.
- Execution Risk
- The pace at which EPAM can sustain its AI innovation and talent development investments amid slower revenue growth forecasts.
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