EPAM Systems Reports 15.4% Revenue Growth to $5.457 Billion for Fiscal Year 2025

EPAM Systems, Inc. reported a significant increase in financial performance for the fiscal year ending December 31, 2025, with total revenues reaching $5.457 billion, a 15.4% increase from $4.728 billion in 2024. The company's net income for the year was $377.7 million, down from $454.5 million in the previous year, resulting in a net profit margin of 6.9%. The decline in profitability was attributed to increased operating expenses, particularly in cost of revenues, which rose to $3.884 billion, representing 71.2% of total revenues, compared to 69.3% in 2024. The effective tax rate also increased to 25.3% from 22.2% in the prior year.

The company experienced notable changes in client concentration, with revenues from its top five clients decreasing to 13.7% of total revenues from 15.8% in 2024. This shift reflects EPAM's ongoing strategy to diversify its client base and reduce dependency on a limited number of clients. The company also reported growth across all its verticals, with Financial Services remaining the largest segment, contributing 24.1% of total revenues, followed by Consumer Goods, Retail & Travel at 19.7%. The company’s geographic revenue distribution showed that the Americas accounted for 58.7% of total revenues, while EMEA contributed 39.3%.

Strategically, EPAM has focused on expanding its service offerings and geographic reach through acquisitions, including NEORIS and First Derivative, which were completed in late 2024. These acquisitions contributed to a 9.2% increase in revenues from newly acquired businesses. The company has also emphasized the integration of artificial intelligence into its service offerings, leveraging platforms like EPAM AI/RUN™ to enhance client solutions and drive innovation.

Operationally, EPAM's employee headcount increased to approximately 62,850 as of December 31, 2025, up from 61,200 in 2024. The company reported a utilization rate of 76.8% for its delivery professionals, reflecting effective resource management despite the challenges posed by geopolitical events, particularly the ongoing conflict in Ukraine. EPAM has maintained a commitment to its employees in Ukraine, continuing to support them through humanitarian efforts while ensuring operational continuity.

Looking ahead, EPAM remains cautiously optimistic about its growth trajectory, although it acknowledges the potential impact of geopolitical instability and economic conditions on client demand. The company plans to continue investing in its workforce and technology capabilities to adapt to evolving market needs and maintain its competitive edge in the digital transformation space.