EPAM Systems (EPAM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues reached $1.302 billion, up 11.7% year-over-year, with organic constant currency growth of 1.4%.

• Non-GAAP diluted EPS for Q1 2025 was $2.41, down 2% year-over-year; GAAP diluted EPS was $1.28, down 35%.

• CEO succession plan announced: Arkadiy Dobkin to Executive Chairman, Balazs Fejes to become CEO and President on September 1, 2025.

• Expanded AI partnerships with AWS and Google Cloud, launching new GenAI solutions and proprietary platforms.

• Maintained a strong focus on client engagement, digital transformation, and employee safety in Ukraine.

Financial highlights

• Q1 2025 revenue was $1.302 billion, up 11.7% year-over-year; organic constant currency revenue grew 1.4%.

• GAAP gross margin was 26.9% (down from 28.4% last year); non-GAAP gross margin was 28.7% (down from 30.4%).

• GAAP income from operations was $99.3 million (7.6% margin); non-GAAP income from operations was $175.8 million (13.5% margin).

• GAAP diluted EPS was $1.28; non-GAAP diluted EPS was $2.41, both down year-over-year.

• Cash and equivalents at quarter-end were $1.179 billion; operating cash flow was $24.2 million.

Outlook and guidance

• Full-year 2025 revenue growth outlook raised to 11.5%–14.5% (GAAP), with organic constant currency growth of 2.0%–5.0%.

• Full-year GAAP diluted EPS expected at $6.78–$7.03; non-GAAP diluted EPS at $10.70–$10.95.

• Q2 2025 revenue guidance: $1.325–$1.340 billion, up 16.2% year-over-year at midpoint.

• Q2 GAAP diluted EPS expected at $1.67–$1.75; non-GAAP at $2.56–$2.64.

• Continued investment in AI, cloud, and digital transformation solutions.