Core Insights - EPAM Systems, Inc. reported strong first quarter results for 2025, with revenues of $1.302 billion, reflecting an 11.7% year-over-year increase, and raised its full-year revenue outlook to a growth rate of 11.5% to 14.5% [1][4][5] Financial Performance - First quarter revenues reached $1.302 billion, an increase of $136.2 million or 11.7% year-over-year [4][5] - GAAP income from operations was $99.3 million, a decrease of 10.1% from $110.5 million in the first quarter of 2024 [5] - Non-GAAP income from operations was $175.8 million, an increase of 1.2% compared to $173.6 million in the first quarter of 2024 [5] - GAAP diluted EPS was $1.28, down 35.0% from $1.97 in the first quarter of 2024, while non-GAAP diluted EPS was $2.41, a decrease of 2.0% from $2.46 [5] Cash Flow and Other Metrics - Cash provided by operating activities was $24.2 million for the first quarter of 2025, significantly lower than $129.9 million for the same period in 2024 [5] - Cash, cash equivalents, and restricted cash totaled $1.179 billion as of March 31, 2025, down 8.7% from $1.290 billion as of December 31, 2024 [5] - The company repurchased 796 thousand shares for $160.0 million during the first quarter of 2025 [5] 2025 Outlook - For the full year, EPAM expects GAAP income from operations to be in the range of 9.0% to 10.0% of revenues and non-GAAP income from operations to be in the range of 14.5% to 15.5% of revenues [4][5] - The company anticipates second quarter revenues to be between $1.325 billion and $1.340 billion, reflecting year-over-year growth of 16.2% at the midpoint [13]

Financial Performance - First quarter revenues reached $1.302 billion, representing an 11.7% year-over-year increase[5] - GAAP diluted EPS for the first quarter was $1.28, a decrease of 35.0% compared to $1.97 in the first quarter of 2024[6] - Non-GAAP diluted EPS was $2.41, a decrease of 2.0% from $2.46 in the first quarter of 2024[6] - Revenue growth reported for the three months ended March 31, 2025, was 11.7%, with organic constant currency growth at 1.4%[21] - Net income for the three months ended March 31, 2025, was $73,482, compared to $116,243 for the same period in 2024[21] - Diluted earnings per share for the three months ended March 31, 2025, was $1.28 on a GAAP basis, and $2.41 on a non-GAAP basis[21] Future Guidance - The company raised its expected year-over-year revenue growth rate for 2025 to a range of 11.5% to 14.5%[7] - For the second quarter, EPAM expects revenues between $1.325 billion and $1.340 billion, reflecting a year-over-year growth of 16.2% at the midpoint[7] - The company expects revenue growth of 16.2% for the second quarter of 2025, with full-year growth guidance between 11.5% and 14.5%[28] - GAAP diluted EPS for the second quarter of 2025 is expected to be between $1.67 and $1.75, with non-GAAP diluted earnings per share projected between $2.56 and $2.64[30] - Non-GAAP income from operations as a percentage of revenues is projected to be between 14.0% and 15.0% for the second quarter of 2025[28] Operational Metrics - Cash provided by operating activities was $24.2 million for the first quarter, down from $129.9 million in the same period last year[6] - Total headcount as of March 31, 2025, was approximately 61,700, with a 0.9% increase in delivery professionals from December 31, 2024[6] - The company repurchased 796 thousand shares for $160.0 million during the first quarter of 2025[6] - GAAP income from operations was 7.6% of revenues, while non-GAAP income from operations was 13.5% of revenues for the first quarter[5] Balance Sheet - Total assets as of March 31, 2025, were $4,723,612, a decrease from $4,750,473 as of December 31, 2024[20] - The company reported a total of $1,235,475 in additional paid-in capital as of March 31, 2025, an increase from $1,190,222 as of December 31, 2024[20] - Total liabilities decreased to $1,080,396 as of March 31, 2025, from $1,119,322 as of December 31, 2024[20] Compensation and Expenses - Stock-based compensation expenses for the three months ended March 31, 2025, were $23,923, up from $22,357 in the same period in 2024[22]

Wall Street analysts forecast that Epam (EPAM) will report quarterly earnings of $2.27 per share in its upcoming release, pointing to a year-over-year decline of 7.7%. It is anticipated that revenues will amount to $1.28 billion, exhibiting an increase of 10.1% compared to the year-ago quarter.The consensus EPS estimate for the quarter has undergone a downward revision of 5.6% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their ...

The market expects Epam (EPAM) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended March 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 8, 2025, might help the stock move higher if these key numbers are better than ...

The expanded collaboration, first established in 2023, will see EPAM work with AWS to harness its advanced generative AI services, including Amazon Bedrock, to allow customers to develop specialized AI agents and GenAI solutions to solve engineering and industry-specific issues, including modernizations. The agreement will also help EPAM to continue developing and refining AI-powered modernization, including automating workflows and tools through AI agents that help organizations seamlessly transition their ...

Core Insights - Endava PLC Sponsored ADR (DAVA) is currently rated as a Strong Buy with a Zacks Rank of 1, while Epam (EPAM) has a Zacks Rank of 4, indicating a Sell recommendation [3] - DAVA shows a more favorable earnings estimate revision activity compared to EPAM, suggesting a better analyst outlook for DAVA [3][7] Valuation Metrics - DAVA has a forward P/E ratio of 11.48, while EPAM's forward P/E is 13.84, indicating that DAVA may be undervalued relative to EPAM [5] - The PEG ratio for DAVA is 0.52, which is significantly lower than EPAM's PEG ratio of 2, suggesting that DAVA offers better value considering its expected earnings growth [5] - DAVA's P/B ratio stands at 1.20, compared to EPAM's P/B ratio of 2.27, further supporting the notion that DAVA is more attractively valued [6] Value Grades - Based on the analysis of various valuation metrics, DAVA has earned a Value grade of B, while EPAM has a Value grade of C, indicating that DAVA is perceived as a better value investment [6]

Core Insights - The report by EPAM Systems highlights the current state of AI adoption in enterprises, revealing a significant gap between perceived and actual AI implementation success [3][4] - Companies are entering a new phase of AI deployment, focusing on high-value use cases and aligning technology with business objectives to drive real value [4][9] AI Adoption Status - Nearly half (49%) of surveyed companies consider themselves "advanced" in AI implementation, but only 26% of these have successfully delivered AI use cases to market [3] - 30% of technology-advanced companies have implemented AI at scale, indicating a struggle for many organizations to transition from experimentation to enterprise-wide deployment [7] Investment Trends - Companies plan to increase AI spending by 14% year-over-year in 2025, reflecting a commitment to AI-driven growth [7] - Disruptors expect 53% of their profits in 2025 to be attributed to AI investments, showcasing a tangible financial impact [7] Key Challenges - A lack of alignment between business and technical teams is identified as a major barrier to AI adoption, with 31% of executives citing outdated technology as a challenge [14] - Security remains a priority, with 35% of businesses indicating that inadequate security programs hinder modernization efforts [14] Governance and Talent - While 75% of advanced companies claim to have clear AI strategies, only 4% of disruptors have developed comprehensive governance frameworks, with effective governance expected to take at least 18 months to implement [14] - 43% of surveyed companies plan to hire AI-related roles in 2025, with machine learning engineers and AI researchers being the most sought-after positions [7]

Core Insights - EPAM Systems, Inc. has been awarded the 2025 Google Cloud Industry Solutions Partner of the Year Award for Oil and Gas, recognizing its innovation and commitment to customer service [1][2][3] Company Achievements - The award highlights EPAM's development of an AI-powered geospatial data visualization and GenAI solution, which enhances clients' ability to manage large datasets [2][3] - EPAM has over 2,000 experienced Google Cloud engineers and has been a Premier level Partner for Google Cloud since 2018, indicating a strong collaboration and expertise in cloud solutions [2][3] Industry Impact - The solution developed by EPAM integrates Google's Gemini models, which can also be applied in manufacturing and supply chain contexts, showcasing versatility across industries [2] - EPAM's initiatives, such as EPAM AI/RUN™ and DIALX Lab, leverage advanced AI technologies to drive significant industry impact and foster continuous innovation [4] Client Engagement - The company emphasizes its local engagement with expert teams to deliver tailored solutions that improve clients' competitive edge across various industries [6] - EPAM's focus on enhancing efficiency and resilience for clients aligns with the growing demand for digital transformation in the energy sector [2][4]

Company Overview - EPAM Systems, Inc. is a leading global provider of digital engineering, cloud, and AI-enabled transformation services, established in 1993 [3] - The company focuses on addressing clients' transformation challenges through an integrated strategy that combines experience and technology consulting with over 30 years of engineering execution [3] Financial Results Announcement - EPAM Systems will host a conference call on May 8, 2025, at 8:00 a.m. ET to discuss its first quarter 2025 financial results, with a news release to be issued prior to the call [1] Digital Innovation and AI Integration - The company leverages AI and GenAI to deliver transformative solutions that enhance clients' digital innovation and competitive edge [4] - EPAM integrates advanced AI technologies into tailored business strategies through platforms like EPAM AI/RUN™ and initiatives such as DIALX Lab [4] Global Presence and Recognition - EPAM serves customers across six continents and has been recognized as one of the top 15 companies in Information Technology Services in the Fortune 1000 [6] - The company was added to the S&P 500 and Forbes Global 2000 in 2021 and has received accolades from Glassdoor and Newsweek as a Most Loved Workplace [6]

Company Overview - EPAM Systems has undergone a transformation since its peak in 2021, influenced by the war, persistent wage inflation, and tightening IT budgets [1] - The company is currently trading at a significant discount from its historical levels, with a price-to-earnings ratio of just 15x [1] Investment Insights - The investment thesis suggests that identifying high-quality and/or severely mispriced investment ideas is crucial for potential investors [1] - A strong investment opportunity is characterized by the ability to purchase great companies at attractive prices [1]