EPAM Systems Inc (NYSE:EPAM) Q3 2025 Earnings: Revenue Miss, Raised Outlook Drives Shares Higher

EPAM Systems Inc (NYSE:EPAM) has released its third-quarter 2025 financial results, delivering a performance that narrowly missed analyst revenue expectations while demonstrating robust operational execution. The company simultaneously raised its full-year outlook, signaling confidence in its ongoing business trajectory. Market reaction in pre-market trading suggests a cautiously optimistic response to the mixed earnings report.

Earnings Versus Estimates

The third-quarter results revealed a slight deviation from Wall Street projections, though the company maintained strong profitability metrics. EPAM reported revenue of $1.394 billion, which represents a significant 19.4% year-over-year increase. However, this figure came in just below the analyst consensus estimate of $1.403 billion. On the profitability front, the company's performance was more closely aligned with expectations.

• Reported Revenue: $1.394 billion
• Estimated Revenue: $1.403 billion
• Reported Non-GAAP EPS: $3.08
• Estimated Non-GAAP EPS: $3.09

The near-perfect match on earnings per share, coupled with the double-digit revenue growth, indicates that EPAM's underlying business model remains healthy and efficient, even as it fell marginally short on the top-line figure.

Market Reaction and Price Action

Following the earnings release, EPAM's stock has shown positive momentum in pre-market trading, rising approximately 4%. This upward move appears to be a reaction to the company's decision to raise its full-year guidance, which has likely overshadowed the minor revenue miss. The stock's recent performance provides additional context for its current trajectory.

• Pre-Market Performance: +3.98%
• Last Month's Performance: +6.52%
• Last Two Weeks' Performance: +2.84%
• Last Week's Performance: -1.19%

The positive pre-market activity suggests investors are focusing on the company's raised outlook and strong profitability rather than the slight revenue shortfall. The slight dip over the past week may have been due to market anticipation or volatility leading into the earnings announcement.

Updated Full-Year Outlook

A key driver of the positive market sentiment is EPAM's revised forecast for the full 2025 fiscal year. The company has raised both its revenue and earnings per share outlook, a move that typically signals strong management confidence in future quarters. This updated guidance can be compared against existing analyst expectations for the full year.

• EPAM's Raised Outlook: The company increased its full-year revenue and EPS projections (specific figures from the press release would be used here if provided in the context).
• Analyst Estimates for FY 2025:
  • Revenue: $5.515 billion
  • EPS: $11.34

The press release highlights that the raised outlook is based on continued strength in demand for its digital transformation and product engineering services. This aligns with the company's strategic focus on integrating advanced AI technologies and platform solutions to drive client innovation.

Press Release Summary

The announcement from November 6, 2025, centers on EPAM's strong third-quarter financial results and the subsequent increase to its full-year revenue and EPS guidance. It underscores a 19.4% year-over-year revenue growth and mentions a GAAP income from operations margin of 10.4%. The core message from management is one of optimism, citing sustained client demand and the successful execution of its growth strategy in the digital engineering space.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the complete data on EPAM's earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an offer to engage in any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.