Shares of EPAM Systems, Inc. (NYSE:EPAM) climbed 3.76% in pre-market trading Thursday after the company posted second-quarter results that outpaced expectations and raised its full-year revenue guidance.
The digital transformation specialist reported adjusted earnings per share of $2.77 for the quarter, ahead of the $2.61 consensus forecast. Revenue reached $1.35 billion, also beating projections of $1.33 billion and marking an 18% year-over-year increase. Excluding currency impacts and acquisitions, organic revenue growth stood at 5.3% compared to the same quarter last year.
“We’re pleased with another strong quarter of sequential organic growth—our third in a row—marking a return to greater consistency in our performance,” said Arkadiy Dobkin, CEO and President at EPAM.
Encouraged by this performance, the company revised its full-year 2025 revenue growth target to 13–15%, an increase from its prior guidance. Organic constant currency revenue growth is now expected to land between 3% and 5% for the year.
Looking ahead to the third quarter, EPAM forecasts revenue in the range of $1.365 billion to $1.38 billion, representing 17.6% growth at the midpoint. Adjusted EPS is anticipated to come in between $2.98 and $3.06, well ahead of analysts’ estimates of $2.61.
While non-GAAP operating margin dipped slightly to 15% from 15.2% a year ago, the company’s GAAP operating margin narrowed to 9.3%, down from 10.5%.
“As our clients prioritize their AI-readiness and preparatory actions, they are increasingly turning to us to build out their data and AI foundation,” said Balazs Fejes, President of Global Business and Chief Revenue Officer at EPAM.
During the quarter, the company repurchased approximately 1.087 million shares of its common stock for $194.9 million. As of June 30, EPAM had $82.1 million remaining under its current share repurchase authorization.
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