EPAM Soars On Strong Q1 Earnings, Raised Guidance

EPAM Systems, Inc. EPAM reported first-quarter 2025 results on Thursday. Its sales grew 11.7% year-over-year to $1.302 billion, beating the analyst consensus estimate of $1.28 billion.

On an organic constant currency basis, revenue increased by 1.4% YoY.

Adjusted EPS of $2.41 is down from $2.56 a year ago, but beat the consensus estimate of $2.27.

Adjusted operating income for the quarter reached $175.8 million, up 1.2% YoY, and the margin stood at 13.5%, down from 14.9% YoY.

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The company's operating cash flow for the first quarter dropped to $24.2 million from $129.9 million year over year. Total cash fell 8.7% to $1.179 billion from $1.290 billion at year-end 2024.

EPAM repurchased 796,000 shares for $160 million in Q1 2025, with $277 million still authorized.

Total headcount reached ~61,700, including ~55,600 delivery professionals, up 0.9% since December 2024.

Second-quarter Outlook: EAPM expects revenue of $1.325 billion to $1.340 billion versus an estimated $1.30 billion, and adjusted EPS of $2.56 to $2.64 versus the $2.47 consensus.

2025 Outlook Raised: Revenue growth raised to 11.5% to 14.5% (or 2.0% to 5.0% organic, constant currency). The company now expects Sales Guidance of $5.27 billion to $5.41 billion (prior from $5.20 billion to $5.39 billion) versus the $5.27 billion consensus.

The company expects Adjusted EPS of $10.70 to $10.95 (prior $10.45 to $10.75) versus the consensus of $10.50. It sees GAAP operating margin at 9.0% to 10% and non-GAAP at 14.5% to 15.5%.

EPAM narrowed its GAAP EPS guidance from $6.78 to 7.08 to $6.78 to $7.00, compared to the $6.88 consensus.

Additionally, EPAM announced that founder and CEO Arkadiy Dobkin will become Executive Chairman on September 1, 2025, with Balazs Fejes appointed as the new President and CEO to lead the company's next growth phase.

Price Action: EPAM shares are trading higher by 13.7% to $180.98 at the last check on Thursday.

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