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NEWTOWN, PA - On Thursday, EPAM Systems, Inc. (NYSE:EPAM) reported second-quarter earnings that surpassed analyst expectations and raised its full-year revenue outlook.
The digital transformation services provider saw its shares climb 3.76% in pre-market trading after the announcement.
The company reported adjusted earnings per share of $2.77 for the second quarter, exceeding the analyst consensus of $2.61. Revenue came in at $1.35 billion, above the expected $1.33 billion and representing an 18% increase YoY. On an organic constant currency basis, revenue grew 5.3% compared to the same period last year.
"We’re pleased with another strong quarter of sequential organic growth—our third in a row—marking a return to greater consistency in our performance," said Arkadiy Dobkin, CEO and President at EPAM.
Based on the strong performance, EPAM raised its full-year 2025 revenue growth forecast to 13-15%, up from its previous guidance. The company now expects organic constant currency revenue growth of 3-5% for the year.
For the third quarter, EPAM projects revenue between $1.365 billion and $1.38 billion, representing 17.6% growth at the midpoint, with adjusted EPS expected to be $2.98-$3.06, well above the analyst consensus of $2.61.
The company’s non-GAAP operating margin was 15% for the quarter, slightly down from 15.2% in the same period last year, while GAAP operating margin decreased to 9.3% from 10.5%.
"As our clients prioritize their AI-readiness and preparatory actions, they are increasingly turning to us to build out their data and AI foundation," said Balazs Fejes, President of Global Business and Chief Revenue Officer at EPAM.
The company repurchased 1.087 million shares of its common stock for $194.9 million during the quarter, with $82.1 million remaining under its share repurchase authorization as of June 30.
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