EPAM tops estimates as GenAI surge drives double-digit revenue growth

EPAM Systems (NYSE:EPAM) delivered a robust fourth-quarter performance, signaling that its aggressive pivot into "AI-native" services is paying off as the company closes out a pivotal fiscal year.

The software engineering giant reported fourth-quarter revenue of $1.408 billion, a 12.8% increase compared to the same period last year.

For the full year 2025, total revenues reached $5.457 billion, marking a 15.4% surge over 2024.

Profitability also saw a significant boost, with non-GAAP diluted earnings per share (EPS) rising to $3.26 for the quarter and $11.50 for the year, comfortably ahead of Wall Street’s consensus estimates.

The strong results highlight EPAM's recovery after a challenging period of geopolitical and macroeconomic uncertainty.

Under the leadership of CEO Balazs Fejes and Executive Chairman Arkadiy Dobkin, the firm has successfully integrated major acquisitions like NEORIS and First Derivative, while simultaneously scaling its AI offerings.

Management noted that demand for foundational data engineering and AI-native application stacks drove a meaningful portion of the year's organic growth.

The company’s financial health remained a core highlight, with full-year cash from operations climbing to $654.9 million.

EPAM utilized its strong balance sheet to prioritize shareholder returns, repurchasing 3.54 million shares for $660.6 million during the year.

As of December 31, the company still maintains a significant buyback authorization of $776.5 million.