EPAM Systems, Inc. (NYSE: EPAM) shares opened lower on Thursday after the information technology services company reported quarterly and annual results for the period ended Dec. 31, 2025 and provided first-quarter and full-year revenue guidance. At the close of trading, EPAM was priced at approximately $133.38, down intraday, representing a notable percentage decline from Wednesday’s close. The company’s market capitalization stood near $9.3 billion based on the latest share price and outstanding shares.
Fourth Quarter 2025 Results
For the fourth quarter of 2025, EPAM reported consolidated revenues of $1.408 billion, a 12.8% increase compared with the same period a year earlier. On a GAAP basis, diluted earnings per share were $1.98, up 10.0% from the fourth quarter of 2024, and non-GAAP diluted EPS was $3.26, up 14.8% year-over-year. GAAP income from operations represented 10.6% of revenues while non-GAAP income from operations was 16.3% of revenues.
Segment-level detail in the earnings press release did not break out specific product or service lines; the company noted growth in both GAAP and non-GAAP operating results alongside revenue increases compared with the fourth quarter of 2024.
Full Year 2025 Results
For the full year 2025, EPAM reported total revenues of $5.457 billion, up 15.4% from $4.728 billion in full-year 2024. On a GAAP basis, diluted EPS was $6.72, a 14.3% decrease compared with $7.84 in 2024. On a non-GAAP basis, diluted EPS was $11.50, an increase of 5.9% compared with $10.86 in 2024. GAAP operating income for the year was $520.0 million, down 4.5% from $544.6 million in 2024, while non-GAAP operating income was $831.5 million, up 6.7% from $779.2 million a year earlier.
Business and Operations Update
The company reported cash provided by operating activities of $282.9 million for Q4 2025, up from $130.3 million in the fourth quarter of 2024 and $654.9 million for the full year compared with $559.2 million in 2024. EPAM repurchased 1.16 million shares for $223.5 million in the fourth quarter and 3.54 million shares for $660.6 million during the full year under its share repurchase programs; $776.5 million remained authorized as of Dec. 31. Cash, cash equivalents and restricted cash totaled approximately $1.301 billion, modestly higher than a year earlier. Total headcount was about 62,850 at year-end, including approximately 56,600 delivery professionals.
Geographic revenue distribution for the fourth quarter showed the Americas contributing 58% of total revenue with 7.6% growth. The EMEA region provided 40% of revenue, growing 21.8% year-over-year while the APAC region accounted for 2% of revenue.
Equity Analyst Commentary
Institutional research summaries noted that EPAM’s quarterly revenue and earnings metrics exceeded consensus estimates, particularly the non-GAAP EPS figure, which topped expected levels. Analysts noted broad demand for digital and AI transformation services as a continuing driver of growth across key sectors including financial services and software. Commentary attributed the stock’s weaker performance partly to investor focus on the company’s 2026 growth outlook relative to 2025 trends.
Guidance & Outlook
EPAM provided guidance for 2026 expecting year-over-year revenue growth in a specified range and adjusted operating margins within stated bands. For the first quarter of 2026, the company expects revenues in a defined range that implies a mid-single digit year-over-year increase, with corresponding ranges for GAAP and non-GAAP income from operations and diluted EPS estimates. For the full year 2026, EPAM anticipates a moderated revenue growth range compared with 2025 results. These figures were presented as company guidance.
Performance Summary
EPAM’s stock declined sharply on the day of the earnings report and guidance release. Q4 revenue and non-GAAP EPS increased year-over-year. Full-year revenue rose, while GAAP EPS declined and non-GAAP EPS was higher. Operating cash flow expanded for both the quarter and the year. Share repurchases continued through 2025 and the company outlined expected revenue and earnings ranges for upcoming periods.