Financial Data and Key Metrics Changes - In Q3 2025, EPAM generated revenue of $1.394 billion, a year-over-year increase of 19.4% on a reported basis, exceeding the high end of revenue guidance [24] - Organic constant currency revenue grew 7.1% compared to Q3 2024, marking the fourth consecutive quarter of positive year-over-year organic growth [10][24] - GAAP gross margin for the quarter was 29.5%, down from 34.6% in Q3 of the previous year, while non-GAAP gross margin was 31% compared to 34.3% [27] - GAAP income from operations was $145 million, or 10.4% of revenue, compared to $177 million, or 15.2% of revenue in Q3 of last year [28] - Non-GAAP diluted EPS was $3.08, reflecting a 4-cent decrease year-over-year [29] Business Line Data and Key Metrics Changes - Five out of six industry verticals posted year-over-year growth, with financial services growing 32.7% and software and high-tech growing 19.1% [25][26] - Life sciences and healthcare increased 11.8%, while consumer goods, retail, and travel delivered 9.9% growth [26] - Emerging verticals grew 38.9% year-over-year, with Neoris contributing significantly [26] Market Data and Key Metrics Changes - The Americas, representing 58% of Q3 revenues, grew 16% year-over-year, while AMEA increased 24.9% [26] - APAC, making up 2% of revenues, increased 17.7% year-over-year [26] - Revenues from the top 20 clients grew 10.2% year-over-year, while revenues from clients outside the top 20 increased 24.4% [27] Company Strategy and Development Direction - The company is focused on AI and AI-native services, with a strategy to enhance engineering skills and invest in advanced AI playbooks [5][10] - EPAM aims to lead foundational and transformational programs demanded by AI, emphasizing the importance of engineering expertise and risk management [9] - The launch of AI Run Transform strategy is expected to complement growth momentum and capture demand [24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting that AI is driving incremental demand and improving the pipeline globally [11] - The company anticipates a strong Q4 exit, with higher organic constant currency growth rates than previously forecasted [33] - Management highlighted the importance of maintaining pricing integrity and the competitive advantage derived from trusted quality and execution [12] Other Important Information - The company announced a new $1 billion share repurchase program, reflecting confidence in its underlying business strength [24] - Cash flow from operations for Q3 was $295 million, the highest level in EPAM's history [30] Q&A Session Summary Question: Plans for entering the Agentic BPO space - Management indicated that they are experimenting with automation using EPAM's build platforms and emphasized the differences from previous RPA efforts [38][39] Question: Considerations for Q4 exit rate and growth potential for 2026 - Management noted that seasonality will negatively impact Q4 due to fewer build days and more vacations, but they expect continued investment from clients [40][41] Question: Competitive advantage and market share gains - Management acknowledged that clients are redirecting work from competitors who fail to deliver, highlighting EPAM's engineering capabilities as a key differentiator [46][47] Question: Focus on cost management and profitability - Management discussed efforts to balance the workforce pyramid and emphasized a focus on profitable projects and selective client engagements [48][49] Question: Size and growth of AI projects - Management noted that AI projects are evolving from proof of concepts to larger engagements, with potential revenue growth from these initiatives in the coming years [51][52]