Q3 2025 Epam Systems Inc Earnings Call Transcript
Key Points
- EPAM Systems Inc (EPAM) reported better-than-expected third-quarter results, marking another quarter of strong delivery execution and broad outperformance.
- The company continues to benefit from AI and AI-native demand, with clients prioritizing AI build-outs and turning to EPAM for acceleration in AI investments and innovation.
- EPAM's AI-native services have shown strong growth, with a third consecutive quarter of double-digit sequential growth in AI-native revenues.
- The company has been recognized by industry analysts and partners, with IDC Marketscape positioning EPAM as a leader in experience engineering, custom build, and AI consultancy capabilities.
- EPAM announced a new $1 billion share repurchase program, reflecting confidence in its business strength and momentum, while returning cash to shareholders.
- GAAP gross margin for the quarter decreased to 29.5% from 34.6% in the same period last year, impacted by higher variable compensation and lower profitability from recent acquisitions.
- The company is not expecting a significant release of excess client budgets in Q4, which contrasts with the previous year's end-of-year budget releases.
- EPAM's organic constant currency revenue growth is expected to decelerate in Q4 compared to Q3, with a projected growth rate of 4.4% at the midpoint.
- The company faces challenges in maintaining profitability, with GAAP income from operations decreasing to 10.4% of revenue compared to 15.2% in Q3 of last year.
- EPAM's utilization rate slightly decreased to 76.5% from 78.1% in Q2 2025, indicating potential inefficiencies in resource allocation.
Thank you for standing by. My name is Rebecca, and I will be your conference operator today. At this time, I would like to welcome everyone to the EPAM Reports Results for Third Quarter 2025 Conference Call. [Operator Instructions].
I would now like to turn the call over to Mike Rowshandel, Head of Investor Relations. Please go ahead.
Good morning, everyone, and thank you for joining us today on our third quarter 2025 earnings announcement. As the operator just mentioned, I'm Mike Rowshandel, Head of Investor Relations. We hope you've had an opportunity to review our earnings release we issued earlier today. If you have not, copies are available on epam.com in the Investors section.
With me on today's call are Balazs Fejes, CEO and President; and Jason Peterson, Chief Financial Officer. I would like to remind those listening that some of the comments made on today's call may contain forward-looking statements. These statements are subject to risks and uncertainties as described in
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
