NEWTOWN, PA — EPAM Systems, Inc. (NYSE: EPAM) announced solid financial results for the fourth quarter and full year ending December 31, 2024, underpinned by strategic acquisitions and a return to year-over-year organic growth in the final quarter of the year.
For Q4 2024, EPAM reported revenues of $1.248 billion, reflecting a 7.9% increase compared to the same period in 2023. GAAP diluted earnings per share (EPS) rose 8.4% year-over-year to $1.80, while non-GAAP diluted EPS climbed 3.3% to $2.84. GAAP income from operations improved to $136.5 million, representing 10.9% of revenues. Non-GAAP income from operations stood at $208.2 million, or 16.7% of revenues.
For the full year, EPAM achieved revenues of $4.728 billion, up 0.8% from the previous year despite market challenges. Full-year GAAP diluted EPS rose 11.0% to $7.84, while non-GAAP diluted EPS increased 2.5% to $10.86.
“After navigating a dynamic year, we are pleased to report a strong fourth quarter,” said Arkadiy Dobkin, CEO and President of EPAM Systems. “We continued to build sequential momentum, and saw a return to year-over-year organic growth, while we simultaneously accelerated our global strategy with the acquisitions of NEORIS and First Derivative.”
Strategic Acquisitions and Operational Excellence
A key driver of EPAM’s results was its strategic acquisitions. The purchase of NEORIS expanded EPAM’s capabilities in Latin America and Spanish- and Portuguese-speaking regions, while strengthening nearshore delivery options in Europe. The acquisition of First Derivative bolstered EPAM’s consulting and delivery expertise in financial services across North America, Europe, and APAC, while diversifying its client portfolio.
These acquisitions align with EPAM’s commitment to enhancing its technological and consulting capabilities. “As we look ahead, we believe 2025 will be a year of transition, as clients balance their cost focus with the need to accelerate their transformational and GenAI journeys,” added Dobkin.
Cash Flow and Shareholder Returns
EPAM reported cash flows from operating activities of $130.3 million for Q4 2024, slightly below the $171.4 million recorded in the same quarter last year. Over the entire year, the company repurchased 1.85 million shares of common stock, totaling $398 million, leaving $437 million authorized for future repurchases as of December 31, 2024.
2025 Outlook
The company anticipates revenues to grow between 10.0% and 14.0% in 2025, with organic constant currency growth projected at 1.0% to 5.0%. GAAP diluted EPS is expected to range from $6.78 to $7.08, while non-GAAP diluted EPS is forecasted at $10.45 to $10.75.
EPAM’s strategic focus will include further investment in talent and the integration of its recent acquisitions. “We see a strong need to continue to invest in our talent, advanced technological and consulting capabilities, and the integration of recent acquisitions to best position ourselves to capture market share once demand returns to more normalized levels,” said Dobkin.
Positioned for Growth
EPAM’s robust Q4 performance, strategic acquisitions, and cautious yet optimistic 2025 outlook signal its readiness for sustained growth. By advancing its capabilities and aligning with emerging market demands, EPAM is positioned to strengthen its leadership in digital transformation and engineering services, paving the way for long-term success.
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