Stock prices for EPAM Systems climb as Q2 earnings surpass expectations, forecasts Q3 earnings to exceed market estimates, and boosts its FY25 outlook - Revised Report
EPAM Systems, Inc. (EPAM) has reported its second-quarter earnings for the year 2025, surpassing market estimates. The technology services company posted adjusted earnings per share of $2.77, up from $2.45 in the same period last year [1].
The strong Q2 2025 performance included revenues of $1.353 billion, up 18.1 percent year-over-year (YoY), driven by solid organic growth and favourable currency effects [1][5]. Growth was broad-based across verticals like Financial Services (up 34.4%), Software & Hi-Tech (up 21.2%), Life Sciences & Healthcare (up 11.7%), and Emerging markets (up 28.7%) [5].
However, EPAM's second-quarter earnings per share were $1.56, down from $1.70 in the same period last year. Analysts had expected EPAM to earn $2.61 per share in the second quarter [2]. On an organic constant currency basis, EPAM's second-quarter revenue was up 5.3 percent [2]. The Street expected EPAM's second-quarter revenue to be $1.33 billion [3].
In the pre-market activity, EPAM shares were gaining around 7.6 percent to trade at $162.94 [3].
Looking ahead, EPAM has raised its outlook for the third quarter and the full year 2025. For the third quarter, EPAM expects earnings per share in the range of $1.89 to $1.97, and adjusted earnings per share in the range of $2.98 to $3.06 [1][4]. Revenues for the third quarter are projected to be in the range of $1.365 billion to $1.380 billion, reflecting year-over-year growth of 17.6 percent at the midpoint [1][4].
The company raised its fiscal 2025 adjusted earnings view above the market [1][4]. EPAM now expects earnings per share in the range of $6.48 to $6.64 and adjusted earnings per share in the range of $10.96 to $11.12 for the full year 2025 [1]. EPAM also raised its expected year-over-year revenue growth rate to now be in the range of 13.0 percent to 15.0 percent for 2025, and organic constant currency basis to be in the range of 3.0 percent to 5.0 percent [1][4].
Management's upward revision in guidance underscores confidence in sustaining growth driven by digital transformation and AI-related services [1][4]. Analysts forecast Q3 revenue near $1.38 billion and EPS around $2.94, which matches the company’s raised guidance and reflects continued momentum [3].
In summary, EPAM expects robust revenue growth exceeding 17% in Q3 2025 and maintains an optimistic full-year revenue growth outlook of 13-15%, reflecting strong demand across its key industry verticals.
References:
- EPAM Systems Reports Second Quarter 2025 Financial Results
- EPAM Systems Q2 Earnings: What to Expect
- EPAM Systems Q2 Earnings Preview: What to Watch For
- EPAM Systems Raises Full-Year Guidance, Shares Jump
- EPAM Systems Q2 2025 Revenue Growth Driven by Strong Organic Growth and Favorable Currency Effects
- Despite the slight drop in EPAM Systems' Q2 2025 earnings per share compared to the same period last year, the company's robust revenue growth and positive outlook for Q3 and the full year 2025 indicate potential opportunities for personal-finance investors.
- In the context of the technology services industry, EPAM Systems' Q2 2025 performance, with strong revenue growth across various verticals like Financial Services, Software & Hi-Tech, Life Sciences & Healthcare, and Emerging markets, makes it an interesting option for those considering business or investing in the sector.
