EPAM Systems Reports 18% Revenue Growth to $1.353 Billion in Q2 2025

EPAM Systems, Inc. reported a significant increase in financial performance for the second quarter of 2025, with revenues reaching $1.353 billion, a 18.0% increase from $1.147 billion in the same period last year. For the first half of 2025, total revenues amounted to $2.655 billion, up 14.8% from $2.312 billion in the first half of 2024. The company attributed this growth to improved demand for its services, successful acquisitions, and favorable foreign exchange fluctuations. However, net income for the second quarter decreased to $88.0 million, down from $98.6 million year-over-year, while diluted earnings per share fell to $1.56 from $1.70.

In terms of operational metrics, EPAM's cost of revenues (exclusive of depreciation and amortization) increased to $964.0 million for the second quarter, representing 71.2% of total revenues, compared to 70.7% in the prior year. This rise was primarily driven by higher variable compensation expenses and costs associated with recent acquisitions, including NEORIS and First Derivative. Selling, general, and administrative expenses also rose to $231.7 million, reflecting a 19.4% increase from the previous year, largely due to similar acquisition-related costs and increased variable compensation.

The company has been active in expanding its capabilities through acquisitions, completing one acquisition in 2025 for $8.8 million, which enhanced its AI-enabled business operations. In 2024, EPAM acquired NEORIS for $626.3 million and First Derivative for $300.7 million, significantly bolstering its presence in the technology consulting sector. As of June 30, 2025, EPAM's total assets stood at $4.711 billion, with cash and cash equivalents of $1.041 billion, down from $1.286 billion at the end of 2024.

Geographically, EPAM's revenues from the Americas segment increased to $787.4 million, while the Europe segment saw revenues rise to $566.0 million, marking growth rates of 12.7% and 26.4%, respectively. The company reported that the United States remains its largest market, contributing $710.0 million in the second quarter. The company also noted that it continues to face challenges due to the ongoing geopolitical situation in Ukraine, which has necessitated a humanitarian commitment of $100 million to support its employees and their families affected by the conflict.

Looking ahead, EPAM Systems anticipates continued growth driven by demand for its digital transformation services and strategic acquisitions. However, the company remains cautious about potential disruptions from geopolitical tensions and market conditions, which could impact its operations and financial performance. The management is focused on optimizing costs and enhancing operational efficiency to navigate these challenges effectively.