EPAM Systems (NYSE:EPAM) shares climbed 5.3% in premarket trading Thursday after the digital transformation services firm reported better-than-expected third-quarter results and raised its full-year 2025 guidance.
The company posted adjusted earnings of $3.08 per share, ahead of analyst forecasts of $3.03, while revenue reached $1.39 billion, exceeding estimates of $1.37 billion and marking a 19.4% year-over-year increase. On an organic constant-currency basis, revenue rose 7.1% versus the same quarter last year.
“We are pleased to deliver another quarter of improving year-over-year organic constant currency revenue growth, driven by our deep engineering expertise and focus on helping clients build out their AI foundation and transform themselves into AI-Native organizations,” said Balazs Fejes, CEO and President of EPAM.
Following the upbeat quarter, EPAM raised its full-year revenue growth forecast to 14.8%–15.2%, up from its previous midpoint of 14.0%. The company also increased its adjusted EPS outlook to a range of $11.36–$11.44, topping the consensus estimate of $11.14.
EPAM reported a GAAP operating margin of 10.4% and a non-GAAP margin of 16.0%, reflecting continued operational efficiency. The company also advanced its capital return program, buying back $82.1 million in stock during the quarter and approving a new $1 billion share repurchase authorization.
Looking ahead to the fourth quarter, EPAM projects revenue between $1.38 billion and $1.395 billion, implying 11.1% growth at the midpoint, with adjusted EPS expected in the range of $3.10–$3.18.