EPAM(US:EPAM)2025-11-06 00:51Financial Performance - Third quarter revenues reached $1.394 billion, representing a year-over-year increase of 19.4%[5] - GAAP diluted EPS for the third quarter was $1.91, a decrease of 19.4% compared to $2.37 in the same quarter of 2024[6] - Non-GAAP diluted EPS was $3.08, down 1.3% from $3.12 in the third quarter of 2024[6] - Expected GAAP diluted EPS for the full year is projected to be in the range of $6.75 to $6.83[8] - The company anticipates fourth quarter revenues to be between $1.380 billion and $1.395 billion, reflecting year-over-year growth of 11.1%[8] - Revenue growth reported for the three months ended September 30, 2025, was 19.4%, while organic constant currency revenue growth was 7.1%[22] - Net income for the three months ended September 30, 2025, was $171,794 thousand, compared to $179,086 thousand for the same period in 2024, reflecting a decrease of 4.3%[22] - Diluted earnings per share for the three months ended September 30, 2025, was $3.08, down from $3.12 in the same period of 2024[22] - Expected revenue growth for Q4 2025 is projected at 11.1%, with an organic constant currency growth of 4.4%[30] - Full year 2025 revenue growth is expected to be 15.0%, with organic constant currency growth at 4.6%[30] Shareholder Actions - The company repurchased $82.1 million of stock in the third quarter and announced a new share repurchase plan for up to $1 billion[5] Operational Metrics - Total headcount as of September 30, 2025, was approximately 62,350, with a 0.5% increase in delivery professionals since June 30, 2025[8] - Cash provided by operating activities for the first nine months of 2025 was $372.0 million, down from $428.9 million in the same period of 2024[8] - Operating margin for the three months ended September 30, 2025, was 10.4%, down from 15.2% in the same period of 2024[22] - GAAP income from operations as a percentage of revenues for Q4 2025 is estimated to be between 10.0% and 11.0%[30] - Non-GAAP income from operations as a percentage of revenues for Q4 2025 is projected to be between 15.5% and 16.5%[30] Tax and Expenses - The company expects a GAAP effective tax rate of approximately 25.0% for the full year[8] - The effective tax rate for GAAP is approximately 24.0% for Q4 2025, while the non-GAAP effective tax rate is approximately 23.0%[30] - Stock-based compensation expenses for the three months ended September 30, 2025, were $21,149 thousand, up from $19,576 thousand in the same period of 2024, an increase of 8.0%[23] - Stock-based compensation expenses are expected to be 3.2% of revenues for the full year 2025[30] Balance Sheet - Total assets increased to $4,843,300 thousand as of September 30, 2025, up from $4,750,473 thousand at December 31, 2024, representing a growth of 1.96%[21] - Total current liabilities increased to $835,262 thousand as of September 30, 2025, compared to $821,039 thousand at December 31, 2024, an increase of 1.5%[21] - Total equity increased to $3,726,843 thousand as of September 30, 2025, compared to $3,631,151 thousand at December 31, 2024, an increase of 2.6%[21] Other Initiatives - The company has committed $100 million for humanitarian support in Ukraine, which includes expenses related to the ongoing crisis[24] - The company incurred $11,028 thousand in cost optimization charges during the three months ended September 30, 2025, related to restructuring initiatives[25] - The impact of foreign exchange rates is expected to reduce revenue growth by 2.4% in Q4 2025[30] - Inorganic revenue growth is anticipated to decline by 4.3% for Q4 2025[30]