EPAM Systems (EPAM) Q4 2025 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2025 results, with double-digit revenue growth and outperformance versus guidance, driven by AI-native and AI foundational services momentum.

• AI-native revenues exceeded $105 million in Q4, with expectations to surpass $600 million in 2026, reflecting rapid scaling and robust demand.

• Recognized as a leader in generative AI consulting and implementation by Gartner, and received multiple industry awards for innovation and service quality.

• Full year GAAP diluted EPS was $6.72 (down 14.3% YoY); non-GAAP diluted EPS was $11.50 (up 5.9% YoY).

• Strong growth in AI-native revenues and continued investment in AI innovation and talent.

Financial highlights

• Q4 2025 revenue was $1.408 billion, up 12.8% year-over-year; full-year 2025 revenue reached $5.457 billion, up 15.4% year-over-year.

• Q4 GAAP income from operations was $149.3 million (10.6% margin); non-GAAP was $230 million (16.3% margin).

• Full year GAAP income from operations was $520 million (9.5% margin); non-GAAP was $831.5 million (15.2% margin).

• Q4 GAAP EPS was $1.98; non-GAAP EPS was $3.26, up 14.8% year-over-year.

• Free cash flow in Q4 was $268 million, and $613 million for the full year, with a 94.7% adjusted net income conversion.

Outlook and guidance

• 2026 revenue growth expected at 4.5%-7.5% reported, with 3%-6% organic constant currency growth.

• GAAP operating margin guidance: 10%-11%; non-GAAP: 15%-16%.

• 2026 GAAP EPS expected at $7.95-$8.25; non-GAAP EPS at $12.60-$12.90, up 10.9% YoY.

• Q1 2026 revenue guidance: $1.385-$1.4 billion, with 3% organic constant currency growth at midpoint; non-GAAP EPS $2.70–$2.78, up 13.7% YoY.

• Guidance reflects a -1% headwind from a large NEORIS client and assumes stable productivity in Ukraine.