EPAM Systems Inc (NYSE:EPAM) Reports Mixed Q2 2025 Earnings with Revenue Growth but EPS Miss

EPAM Systems Inc (NYSE:EPAM) reported its second-quarter 2025 earnings, delivering mixed results relative to analyst expectations. While revenue growth remained robust, earnings per share (EPS) fell short of estimates, contributing to a notable pre-market reaction.

Key Financial Highlights

• Revenue: The company posted Q2 revenue of $1.353 billion, up 18.0% year-over-year, but slightly below the consensus estimate of $1.360 billion.
• EPS: GAAP EPS came in at $2.45, missing the $2.66 analyst forecast. Non-GAAP operating income margin was not disclosed in the provided data, but GAAP operating income stood at 9.3% of revenue.
• Full-Year Outlook: EPAM raised its full-year revenue guidance, signaling confidence in continued growth, though specific figures were not detailed in the available press release. Analysts currently project full-year revenue at $5.467 billion and earnings at $11.06 per share.

Market Reaction

The stock is up 4.42% in pre-market trading, suggesting investors are focusing on the revenue beat and upward revision in guidance rather than the EPS miss. However, the stock has struggled in recent weeks, with declines of -7.72% over the past week, -11.55% over two weeks, and -16.74% over the past month, indicating broader market concerns prior to the earnings release.

Press Release Summary

The earnings announcement highlighted strong demand for EPAM’s digital transformation and AI-driven engineering services, particularly in regulated sectors like financial services and healthcare. The company emphasized its role in helping clients modernize legacy systems and adopt AI solutions, which likely contributed to the double-digit revenue growth.

Looking Ahead

Analysts expect Q3 2025 revenue of $1.38 billion and EPS of $2.94, which will be a key benchmark for whether EPAM can sustain its momentum. The raised full-year outlook suggests management anticipates stronger performance in the second half of the year.

For a deeper dive into EPAM’s earnings estimates and historical performance, visit the EPAM earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.