In This Article:
EPAM Systems EPAM reported first-quarter 2025 non-GAAP earnings of $2.41 per share, which beat the Zacks Consensus Estimate by 6.2%. The bottom line decreased from the year-ago quarter’s earnings of $2.46 per share.
EPAM’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 8.32%.
The company's first-quarter revenues of $1.3 billion surpassed the consensus mark by 1.37%.
EPAM’s top line rose 11.1% year over year, demonstrating an improvement across its business segments, primarily benefiting from its latest technological innovations enabled by Gen AI.
Following the company’s stronger-than-expected top and bottom-line results and a solid earnings guidance for the full-year 2025, EPAM shares gained 12.88% in Thursday's trading session.
EPAM Systems, Inc. Price, Consensus and EPS Surprise
EPAM Systems, Inc. price-consensus-eps-surprise-chart | EPAM Systems, Inc. Quote
EPAM’s Q1 Details
EPAM’s year-over-year top-line growth was driven by the performance across its industry verticals, such as Financial Services, Software & Hi-Tech, Life Sciences and Emerging, partially offset by softness in Business Info and Travel & Consumer.
Revenues from Financial Services (24.1% of total revenues) were $314 million, up 29.3% year over year.
First-quarter revenues from Consumer Goods, Travel and Retail (19.6% of total revenues) were $255.5 million, down 1.4% year over year.
Revenues from Software and Hi-Tech (14.6% of total revenues) in the fourth quarter were $190 million, up 10.5% year over year.
Life Science and Health revenues (11.9% of total revenues) were $155 million, up 10.5% year over year.
Revenues from Business Info and Media (12.5% of total revenues) were $167 million, down 2.2% year over year.
Emerging revenues (17.8% of total revenues) were $221 million, up 22.8% year over year.
EPAM’s non-GAAP gross profit increased 5.7% year over year to $374.2 million while the gross margin contracted 170 basis points (bps) to 28.7%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
The non-GAAP operating income witnessed 1.3% year-over-year growth to $175.8 million. The non-GAAP operating margin contracted 140 bps to 13.5%.
EPAM’s Balance Sheet & Cash Flow
As of March 31, 2025, EPAM had cash, cash equivalents and restricted cash of $1.18 billion, lower than $1.29 billion as of Dec. 31, 2024
Long-term debt was $25.1 million as of March 31, slightly lower than $25.2 million as of Dec. 31.
Cash flow from operations was $24.2 million, while free cash flow was $14.8 million.