Financial Performance - Revenues for Q4 2024 were $1.248 billion, representing a year-over-year increase of 7.9%[5] - GAAP diluted EPS for Q4 2024 was $1.80, an increase of 8.4% compared to $1.66 in Q4 2023[6] - Full year 2024 revenues reached $4.728 billion, up 0.8% year-over-year[9] - GAAP income from operations for the full year 2024 was $544.6 million, an increase of 8.6% from $501.2 million in 2023[9] - Net income for the three months ended December 31, 2024, was $103,299, up from $97,554 in the prior year, reflecting a growth of 7.0%[21] - Basic net income per share increased to $1.82 for the three months ended December 31, 2024, compared to $1.69 for the same period in 2023[21] - Operating income for the three months ended December 31, 2024, was $136,512, an increase from $122,494 in the same period of 2023[21] - Total adjustments to GAAP net income for the year ended December 31, 2024, amounted to $60.1 million, compared to $64.2 million in 2023, reflecting a decrease of 6.5%[25] Future Guidance - For 2025, the company expects year-over-year revenue growth of 10.0% to 14.0%[10] - GAAP diluted EPS guidance for 2025 is projected to be between $6.78 and $7.08[10] - The company expects revenue growth of 10.0% for Q1 2025 and between 10.0% to 14.0% for the full year 2025[34] - Non-GAAP income from operations as a percentage of revenues is projected to be between 12.5% to 13.5% for Q1 2025 and 14.5% to 15.5% for the full year 2025[34] - GAAP diluted earnings per share is estimated to be between $1.27 to $1.37 for Q1 2025 and $6.78 to $7.08 for the full year 2025[36] - Inorganic revenue growth is expected to decline by 11.4% in Q1 2025 and 9.9% for the full year 2025[34] Operational Highlights - Cash provided by operating activities in Q4 2024 was $130.3 million, down from $171.4 million in Q4 2023[9] - Total headcount as of December 31, 2024, was approximately 61,200, with a 16.3% increase in delivery professionals from the previous year[9] - The company recorded a benefit of $68.8 million from research & development government incentives in Poland for the full year 2024[9] - Total current assets decreased to $2,426,248 as of December 31, 2024, down from $3,091,361 as of December 31, 2023[23] - Total assets increased to $4,750,473 as of December 31, 2024, compared to $4,352,365 as of December 31, 2023[23] - Total liabilities increased to $1,119,322 as of December 31, 2024, from $880,895 as of December 31, 2023[23] - The company’s retained earnings increased to $2,555,796 as of December 31, 2024, compared to $2,501,107 as of December 31, 2023[23] Acquisitions and Strategic Moves - The company completed the acquisition of NEORIS and First Derivative, enhancing its capabilities in Latin America and financial services[6] - The company recorded a loss on the sale of its remaining operations in Russia of approximately $25.9 million during the year ended December 31, 2023[30] Expenses and Charges - Stock-based compensation expenses increased to $22.1 million for Q4 2024, up from $19.2 million in Q4 2023, representing a 9.7% increase[25] - Humanitarian support expenses related to Ukraine amounted to $3.1 million in Q4 2024, compared to $0.8 million in Q4 2023, indicating a significant increase[25] - Cost Optimization charges for the year ended December 31, 2024, were $31.3 million, down from $35.1 million in 2023, showing a reduction of 10.8%[25] - The company anticipates an effective tax rate of approximately 24% for both Q1 2025 and the full year 2025[35] Foreign Exchange Impact - The company reported a foreign exchange loss of $5,632 for the three months ended December 31, 2024, compared to a loss of $9,053 in the same period of 2023[21] - The organic constant currency revenue growth for the three months ended December 31, 2024, was 1.0%, while the inorganic revenue growth was -7.3%[24]

Core Viewpoint - Analysts forecast that Epam (EPAM) will report quarterly earnings of $2.75 per share, indicating no change from the previous year, with revenues expected to reach $1.21 billion, reflecting a 4.8% increase year-over-year [1]. Group 1: Earnings and Revenue Estimates - The consensus EPS estimate for the quarter has been revised upward by 0.5% over the last 30 days, indicating a collective reassessment by analysts [2]. - Analysts project revenues by contract type: Time-and-materials at $1.03 billion (+4.5% year-over-year) and Fixed-price at $174.25 million (+4.8% year-over-year) [5]. - Licensing and other revenues are estimated at $9.96 million, showing a significant year-over-year change of +41.5% [6]. Group 2: Market Performance and Analyst Insights - Epam shares have returned +16.8% over the past month, outperforming the Zacks S&P 500 composite, which increased by +4.9% [6]. - The importance of earnings estimate revisions is highlighted as a predictor of potential investor behavior and short-term stock performance [3]. - A deeper analysis of analysts' forecasts for key metrics can provide a more comprehensive understanding of the company's performance [4].

Group 1 - Zacks Premium offers various tools to help investors become more confident and informed, including daily updates on Zacks Rank and Industry Rank, Equity Research reports, and Premium stock screens [1][2] - The Zacks Style Scores are complementary indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the next 30 days [2][3] Group 2 - The Value Score focuses on identifying undervalued stocks using ratios like P/E, PEG, and Price/Sales, appealing to value investors [3] - The Growth Score assesses a company's future prospects by analyzing projected and historical earnings, sales, and cash flow, targeting growth investors [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes, catering to momentum traders [5] Group 3 - The VGM Score combines the three Style Scores to identify stocks with attractive value, strong growth forecasts, and promising momentum, serving as a useful indicator alongside the Zacks Rank [6] - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 4 - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [9][10] - EPAM Systems, Inc. is currently rated 3 (Hold) with a VGM Score of A and a Momentum Style Score of A, having seen an 11.6% increase in shares over the past four weeks [11] - Four analysts have revised EPAM's earnings estimate upwards for fiscal 2024, with the Zacks Consensus Estimate increasing by $0.04 to $10.78 per share, and an average earnings surprise of 9.9% [12]

Core Insights - EPAM Systems, Inc. has been recognized as the Top IT Vendor in Europe for the second consecutive year by Whitelane Research, achieving 'exceptional performer' status across multiple categories [2][3] - The recognition is based on feedback from nearly 2,300 participants from top IT spending organizations in Europe, evaluating over 6,000 unique IT sourcing relationships [2][3] - EPAM's strong performance is attributed to its commitment to client satisfaction, innovation, and high-quality service delivery [3][7] Company Performance - EPAM received the highest ratings in several performance categories, including Service Delivery Quality (Ranked 1, 84%), Application Services (82%), Account Management Quality (82%), General Satisfaction (81%), Digital Transformation (79%), and Transformative Innovation (Ranked 1, 78%) [7] - The company has consistently performed well in previous IT sourcing studies across various European regions, including Germany, Switzerland, the UK, Nordics, and the Netherlands [3] Industry Context - The 2024/2025 IT Sourcing Study by Whitelane Research is one of the most representative reports on the IT sourcing market in Europe, highlighting the competitive landscape and performance of IT service providers [2][3] - EPAM's recognition reflects its ability to lead innovative change through digital transformation technologies and application services, addressing client concerns while maintaining quality and speed [3]

Core Insights - The collaboration between EPAM Systems and Baker Hughes aims to revolutionize the energy sector through advanced digital and AI solutions, marking a significant milestone in digital transformation [1][2][3] Group 1: Collaboration Details - EPAM has been named as Baker Hughes' systems integration collaborator for digital and AI implementations, combining EPAM's digital engineering capabilities with Baker Hughes' energy technology expertise [2][4] - This partnership is expected to redefine workflows, enhance operational efficiency, and deliver innovative solutions that contribute to environmental sustainability [2][4] Group 2: Strategic Goals - The collaboration supports Baker Hughes' commitment to grow its digital revenue stream by 2030 through advanced technologies and sustainable energy development [2][4] - The theme for the 2025 Baker Hughes Annual Meeting, "Progress at Scale," emphasizes the need for sustainable energy development to drive lasting change across the industry [4] Group 3: Event Highlights - EPAM's significant presence at the Baker Hughes Annual Meeting includes a keynote by CEO Arkadiy Dobkin and interactive kiosks showcasing Baker Hughes' applications powered by EPAM's AI technologies [6][4] - The event will gather over 2,000 industry leaders, policymakers, and experts to discuss actionable strategies for change in the energy sector [3][4]

Company Overview - EPAM Systems is a leading global provider of digital engineering, cloud, and AI-enabled transformation services, with expertise in software engineering since 1993 [3] - The company offers AI solutions such as EPAM DIAL, EPAM EliteA™, and EPAM AI/RUN™, focusing on AI LLM orchestration, testing, and engineering [4] - EPAM delivers globally with local engagement through teams of consultants, architects, designers, and engineers, aiming to improve lives and create competitive advantages for clients [5] - The company is recognized as a leader in IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services, and Worldwide Software Engineering Services [6] Financial and Investor Relations - EPAM Systems will host a conference call on February 20, 2025, at 8:00 a.m. ET to discuss its Q4 2024 financial results [1] - The conference call will be live-streamed on the EPAM website, with a replay available in the Investor Relations section [2] Industry Recognition - EPAM was added to the S&P 500 and the Forbes Global 2000 in 2021 and is recognized as a Top 100 Best Workplace by Glassdoor and Newsweek [6] - The company is among the top 15 in Information Technology Services in the Fortune 1000 [6]

Core Viewpoint - EPAM Systems has shown strong stock performance, rising 15.7% over the past three months, significantly outperforming the Zacks Computers - IT Services industry and broader market indices, indicating a positive investment outlook due to strong fundamentals and growth strategies [1] Group 1: AI Expansion - EPAM is expanding its presence in the AI sector through partnerships with major companies like Google Cloud, Microsoft, and Salesforce, focusing on scalable AI solutions [1][2] - The collaboration with Alphabet allows EPAM to utilize Google Cloud's Vertex AI platform for generative AI solutions, enhancing modernization efforts for clients [2] - EPAM's promotion to Microsoft's Globally Managed Enterprise Systems Integrator partner status enables the development of cloud-based applications via Azure OpenAI Service [3] - The partnership with Salesforce has led to the creation of the Salesforce Service Agent AI Coach, an AI tool that analyzes customer service interactions [3] Group 2: Strategic Acquisitions - EPAM is pursuing strategic acquisitions to enhance market presence and product expertise, including the acquisition of Vates in 2024 to strengthen its position in Latin America [5] - The acquisition of First Derivative brought generative AI-enabled financial solutions and over 100 clients from capital markets, expanding EPAM's reach in North America, Europe, and APAC [6] - Acquiring Odysseus has deepened EPAM's expertise in the life sciences sector, while NEORIS has contributed capabilities in digital experience, engineering SAP, data analytics, machine learning, and AI across various industries [7] Group 3: Financial Outlook - Analysts have a positive outlook for EPAM, with the Zacks Consensus Estimate for 2025 revenues at $5.25 billion, reflecting a year-over-year growth of 12% [8] - The consensus for earnings also indicates a modest 5% year-over-year growth for 2025, with EPAM consistently surpassing earnings estimates in the past four quarters, averaging a surprise of 9.9% [8] Group 4: Investment Recommendation - Given the rapid expansion in the AI space through partnerships and acquisitions, EPAM is positioned as a promising investment for 2025 and beyond, making it advisable to consider buying the stock [10]

The Zacks Computers – IT Services industry participants are suffering from challenging macroeconomic conditions that are elongating the sales cycle. The adoption of consultation and transaction processing solutions has been affected by an uncertain macro environment. However, industry participants like ServiceNow (NOW) , EPAM Systems (EPAM) and DXC Technology (DXC) have been benefiting from ongoing digitization efforts globally. Robust spending on cloud, Internet of Things (IoT), cyber security, data and an ...

New AI-powered solutions address generative AI, legacy modernization and data analytics to solve industry-specific challenges NEWTOWN, Pa., Jan. 15, 2025 /PRNewswire/ -- EPAM Systems, Inc. (NYSE: EPAM), a leading digital transformation services and product engineering company, today announced it has expanded its strategic partnership with Google Cloud to deliver innovative industry solutions for clients across the media and entertainment, energy and retail verticals. The enhanced collaboration will leverage ...

In today’s digital transformation, companies all over the world grasp AI technology to improve their overall day-to-day operations. EPAM Systems (NYSE: EPAM ), as one of the leading IT companies offering AI and data driven transformational services inHi there! I am an equity research analyst by profession but a trader by heart, with a background in accounting. I try my best to be a responsible investor, guided by my expertise in fundamental and technical analysis. I enjoy surfing and riding the trends about ...