EPAM Systems Reports Strong Q1 Results, Adjusts Full-Year Guidance

EPAM Systems, Inc. (NYSE: EPAM) has announced its financial results for the first quarter of 2025, showcasing a solid performance despite a challenging economic environment. The company also provided updated guidance for the full year, reflecting its strategic adjustments and market expectations.

EPAM Reports Double Beat with Q1 Results

EPAM Systems reported a revenue of $1.302 billion for the first quarter of 2025, representing an 11.7% increase year-over-year. This figure surpassed the anticipated revenue of $1.28 billion, indicating a robust performance in a fluctuating economic landscape. The company’s ability to exceed expectations can be attributed to its focus on digital transformation services and product engineering, which continue to resonate with clients seeking innovative solutions.

Despite the positive revenue performance, EPAM’s GAAP diluted earnings per share (EPS) was $1.28, a decline from $1.97 in the first quarter of 2024. This decrease of $0.69 reflects a 35.0% drop, influenced by various operational and strategic factors. However, the non-GAAP diluted EPS was reported at $2.41, slightly above the expected EPS of $2.27, showcasing the company’s operational efficiency and cost management strategies.

EPAM’s income from operations on a GAAP basis stood at $99.3 million, a decrease of 10.1% from the previous year. In contrast, the non-GAAP income from operations increased by 1.2% to $175.8 million, underscoring the company’s focus on optimizing its operational framework. This strategic approach has allowed EPAM to maintain a steady growth trajectory, even as it navigates complex market dynamics.

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EPAM System Revises Full-Year Guidance

Looking ahead, EPAM Systems has revised its full-year guidance, reflecting confidence in its strategic initiatives and market positioning. The company now anticipates a year-over-year revenue growth rate in the range of 11.5% to 14.5% for 2025. This adjustment is driven by strong organic growth and favorable foreign exchange rate assumptions, highlighting EPAM’s proactive approach to managing external variables.

For the second quarter, EPAM expects revenues to range between $1.325 billion and $1.340 billion, indicating a year-over-year growth of 16.2% at the midpoint. The company projects its GAAP diluted EPS to be between $1.67 and $1.75, with non-GAAP diluted EPS expected to range from $2.56 to $2.64. This outlook underscores EPAM’s commitment to delivering consistent value to its shareholders while navigating economic uncertainties.

EPAM’s strategic focus on AI-native innovation and engineering excellence positions it well for sustained growth. By leveraging advanced technologies and maintaining disciplined execution, the company aims to enhance its competitive edge in the digital transformation landscape.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.