EPAM Systems (EPAM) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenues reached $1.25 billion, up 7.9% year-over-year, with full-year revenues at $4.73 billion, reflecting a 5-year CAGR of 16%.

• Non-GAAP diluted EPS for Q4 was $2.84, up 3.3% year-over-year; GAAP diluted EPS was $1.80, up 8.4%.

• Recent acquisitions of Neoris and First Derivative expanded global footprint, client relationships, and capabilities in Latin America and financial services.

• Recognized for leadership in AI, digital platform engineering, and as a top workplace by multiple industry sources.

• Operates in 55+ countries, serving 340+ Forbes Global 2000 clients across 11 industries.

Financial highlights

• Q4 2024 revenue was $1.25 billion, up 7.9% year-over-year (1% organic constant currency growth); full-year revenue was $4.73 billion, up 0.8%.

• Q4 GAAP income from operations was $137 million (10.9% of revenue); non-GAAP income from operations was $208 million (16.7% of revenue).

• Full-year GAAP income from operations was $545 million (11.5% of revenue); non-GAAP was $779 million (16.5% of revenue).

• Q4 cash flow from operations was $130 million; full-year cash flow from operations was $559 million.

• Ended Q4 with $1.3 billion in cash and equivalents, down due to acquisitions.

Outlook and guidance

• 2025 revenue growth expected at 10%-14%, with inorganic contribution of ~10% and negative FX impact of 0.9%.

• 2025 GAAP income from operations expected at 9%-10%; non-GAAP at 14.5%-15.5%.

• 2025 GAAP EPS guidance: $6.78-$7.08; non-GAAP EPS: $10.45-$10.75.

• Q1 2025 revenue guidance: $1.275-$1.290 billion (approx. 10% growth, 11.4% inorganic); Q1 GAAP operating margin: 6.5%-7.5%.

• Profitability expected to improve in the second half of 2025 as investments in talent and GenAI platforms continue.