Financial Data and Key Metrics Changes - In Q4 2025, EPAM generated over $1.4 billion in revenues, a year-over-year increase of 12.8% on a reported basis, exceeding the high end of the Q4 revenue outlook [22] - Organic constant currency revenues grew 5.6% compared to Q4 2024, reflecting steady execution throughout 2025 [22] - For the full year 2025, revenues were $5.46 billion, up 15.4% on a reported basis year-over-year, with organic constant currency revenues up 4.9% [30] Business Line Data and Key Metrics Changes - In Q4, five out of six industry verticals posted year-over-year growth, with financial services growing 19.8% and software and high tech growing 18.1% [23] - Emerging verticals delivered strong year-over-year growth of 19.1%, primarily driven by energy and telecommunications [24] - Life sciences and healthcare increased 2% year-over-year, while business information and media delivered flat revenue performance [24] Market Data and Key Metrics Changes - The Americas, representing 58% of Q4 revenues, grew 7.6% year-over-year, while EMEA, comprising 40% of revenues, grew 21.8% [24] - APAC, making up 2% of revenues, grew 0.6% year-over-year but declined 4.3% in organic constant currency [24] - Revenues from top 20 clients grew 7.3% year-over-year, while revenues from clients outside the top 20 increased 15.5% [25] Company Strategy and Development Direction - The company is focusing on AI-native services, expecting to scale these revenues to over $600 million in 2026 [8] - EPAM is adapting its go-to-market approach for a more AI-centric environment, emphasizing industry and verticalized expertise [10] - The company aims to enhance its vertical industry expertise through investments in business development and industry capabilities [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy and growth trajectory, supported by healthy client sentiment and a solid pipeline [32] - There is an expectation of stability in overall client budgets, with a continued shift towards strategic AI programs [32] - The decision-making process is expected to be slower at the start of 2026, but larger programs are anticipated to drive growth later in the year [55] Other Important Information - The company received several key leadership distinctions in 2025, including recognition as a leader in generative AI consulting and implementation services by Gartner [18] - EPAM's AI-native revenues are defined across two groupings: AI-native IP and AI-led transformation initiatives [8] - The company is committed to improving overall profitability and gross margin in 2026 [33] Q&A Session Summary Question: About the first quarter guidance and visibility on larger deals - Management noted that NEORIS's largest customer is expected to ramp down business between Q4 and Q1, impacting growth [41] - There is confidence in a well-built pipeline for the remaining quarters, particularly in European and Middle Eastern markets [43] Question: Reconciliation of 2026 organic growth expectations - The decline from NEORIS's largest client is expected to have a negative 100 basis point impact on growth, but the rest of the business remains strong [49] Question: Impact of elongated sales cycles and client indecision - The decision-making process is slower due to larger AI transformation programs, but this is expected to lead to larger project starts later in the year [55] Question: Expectations around gross margin and free cash flow - Management expects to operate within an 80%-90% conversion range for free cash flow and anticipates improvements in gross margin due to better execution in expanding geographies [59]