EPAM(US:EPAM)2026-02-19 00:35Financial Performance - Revenues for Q4 2025 were $1.408 billion, representing a year-over-year increase of 12.8%[5] - Full year 2025 revenues reached $5.457 billion, up 15.4% year-over-year, with organic constant currency growth of 4.9%[8] - GAAP diluted EPS for Q4 2025 was $1.98, an increase of 10.0% compared to Q4 2024, while non-GAAP diluted EPS was $3.26, up 14.8%[6] - For the full year 2025, GAAP diluted EPS was $6.72, a decrease of 14.3%, while non-GAAP diluted EPS was $11.50, an increase of 5.9%[8] - The company expects Q1 2026 revenues to be in the range of $1.385 billion to $1.400 billion, reflecting a year-over-year increase of 7.0% at the midpoint[11] - For FY 2026, the company anticipates revenue growth of 4.5% to 7.5% and non-GAAP diluted EPS in the range of $12.60 to $12.90[11] Cash Flow and Share Repurchase - Cash provided by operating activities was $282.9 million in Q4 2025, up from $130.3 million in Q4 2024, and totaled $654.9 million for the full year 2025[11] - The company repurchased 1.16 million shares for $223.5 million in Q4 2025, with a total of 3.54 million shares repurchased for $660.6 million during the year[11] Headcount and Workforce - Total headcount as of December 31, 2025, was approximately 62,850, including about 56,600 delivery professionals, marking a 2.7% increase from the previous year[11] Investment and Innovation - The company continues to invest in AI innovation and strategic partnerships to enhance its market position in the AI-Native Build era[3] Income and Expenses - Net income for Q4 2025 was $109,354, up from $103,299 in Q4 2024, representing a 5.1% increase[19] - Operating income for the year ended December 31, 2025, was $520,003, compared to $544,584 in 2024, reflecting a decrease of 4.5%[19] - Selling, general and administrative expenses for Q4 2025 were $243,161, up from $216,969 in Q4 2024, a 12.1% increase[19] - Stock-based compensation expenses for Q4 2025 were $23.019 million, compared to $22.074 million in Q4 2024, with total expenses for the year reaching $86.252 million, up from $80.944 million in 2024[25] - Humanitarian support expenses related to Ukraine amounted to $531 thousand in Q4 2025, with total expenses for the year at $2.308 million, slightly down from $2.350 million in 2024[25] - Cost Optimization charges in Q4 2025 were $15.279 million, significantly higher than $4.837 million in Q4 2024, with total charges for the year at $47.893 million compared to $31.270 million in 2024[25] Assets and Liabilities - Total assets as of December 31, 2025, were $4,902,136, an increase from $4,750,473 as of December 31, 2024[21] - Cash and cash equivalents increased to $1,296,077 as of December 31, 2025, compared to $1,286,267 in 2024[21] - The company’s total liabilities increased to $1,224,328 as of December 31, 2025, from $1,119,322 in 2024[21] Future Projections - The company expects revenue growth of 7.0% for Q1 2026 and between 4.5% to 7.5% for the full year 2026, with an organic constant currency basis growth of 2.9% for Q1 2026 and 3.0% to 6.0% for the full year[32] - GAAP income from operations as a percentage of revenues is projected to be between 7.0% to 8.0% for Q1 2026 and 10.0% to 11.0% for the full year 2026[32] - The GAAP effective tax rate is expected to be approximately 30.0% for Q1 2026 and 26.0% for the full year 2026, with a non-GAAP effective tax rate of approximately 24.0% for both periods[33] - GAAP diluted earnings per share is projected to be between $1.32 to $1.40 for Q1 2026 and $7.95 to $8.25 for the full year 2026, while non-GAAP diluted earnings per share is expected to be between $2.70 to $2.78 for Q1 2026 and $12.60 to $12.90 for the full year 2026[34] Adjustments and Non-Recurring Costs - Total adjustments to GAAP net income for 2025 were $70.855 million, compared to $60.066 million in 2024, with total adjustments for the year reaching $269.131 million versus $175.430 million in 2024[25] - The company has excluded certain one-time charges and benefits from non-GAAP results, including those related to tax planning and humanitarian support, as they are not expected to recur[29] - The company is focused on geographic repositioning due to the ongoing geopolitical instability, with associated costs expected to be nonrecurring once operations normalize[28]