Company Overview

EPAM Systems Inc. is a leading American digital transformation and software engineering services company headquartered in Newtown, Pennsylvania. Founded in 1993, EPAM has evolved into a global powerhouse for digital engineering, cloud and AI-enabled transformation services, and a trusted business and experience consulting partner for enterprises and ambitious startups worldwide.

Since its inception, EPAM has been instrumental in helping clients digitally transform their businesses by leveraging its unique blend of world-class software engineering, design, and consulting services. The company specializes across 11 industries and operates in over 55 countries and regions, consistently delivering innovative solutions to address its customers' most complex challenges.

Business Segments and Services

EPAM offers a comprehensive suite of digital solutions categorized into its core service offerings and industry specializations:

Core Services

- Engineering Services: Encompasses requirements analysis, platform selection, customization, cross-platform migration, implementation, and integration.

- Software Engineering & Consulting: Includes business and experience consulting, cloud platforms, cybersecurity, and advanced artificial intelligence solutions.

- Cloud Services: Provides strategic roadmaps for setting and refining IT and business goals, identifying new cloud opportunities.

- Data, Analytics & AI: Offers robust solutions in data management, analytics, artificial intelligence, customer experience design, and cybersecurity.

Industry Focus

EPAM serves a diverse range of sectors, including:

- Consumer Goods

- Financial Services

- Telecommunications

- Media & Entertainment

- Software & High-Tech

- Education

- Energy & Resources

- Life Sciences & Healthcare

- Automotive & Insurance

- Emerging Vertical Industries

EPAM India, for instance, supports over 150 clients with more than 900 active projects across key sectors like financial services, software & hi-tech, retail & consumer, life sciences, healthcare, and energy.

Global Presence and Scale

EPAM Systems is a significant global employer, with a total workforce of 61,200 people, positioning it among the largest IT services companies worldwide. The company's operations span six continents, with a notable presence in countries such as Germany, Switzerland, China, Belarus, the Netherlands, Ukraine, Armenia, the UK, the US, and Poland. EPAM India has experienced substantial growth, now employing over 10,000 professionals across five key locations, marking a decade of successful operations in the region.

Financial Performance

Latest Financial Results (FY 2024)

- Full Year 2024 Revenues: $4.728 billion, representing a slight increase of 0.8% year-over-year.

- Fourth Quarter 2024 Revenues: $1.248 billion, up 7.9% year-over-year.

- Profitability (Q4 2024):

- GAAP income from operations was 11.5% of revenues.

- Non-GAAP income from operations was 16.5%.

- GAAP diluted EPS increased by 11.0% to $7.84.

- Non-GAAP diluted EPS saw a 2.5% increase to $10.86.

2025 Outlook

- Full Year 2025 Revenue Growth: Expected to be in the range of 10.0% to 14.0%.

- Profitability Projections (FY 2025):

- GAAP income from operations: 9.0% to 10.0% of revenues.

- Non-GAAP income from operations: 14.5% to 15.5% of revenues.

- EPS Projections (FY 2025):

- GAAP diluted EPS: $6.78 to $7.08.

- Non-GAAP diluted EPS: $10.45 to $10.75.

Q2 2025 Performance

- Second quarter 2025 revenues reached $1.353 billion, demonstrating strong year-over-year growth of 18.0% and indicating robust momentum.

Market Position and Recognition

EPAM Systems has consistently been recognized for its growth and leadership. For the second consecutive year, EPAM ranked as the top IT services company on Fortune's 100 Fastest-Growing Companies list, climbing 50 positions to secure the #21 spot.

In 2021, EPAM was added to the S&P 500 American market index and the Forbes Global 2000. The company has also been recognized by Glassdoor and Newsweek as a "Most Loved Workplace" and is proud to be among the top 15 companies in Information Technology Services within the Fortune 1000. Furthermore, EPAM is consistently acknowledged as a leader in IDC MarketScapes for Worldwide Experience Build Services, Worldwide Experience Design Services, and Worldwide Software Engineering Services.

Recent Strategic Developments

EPAM strategically enhanced its capabilities by completing the acquisitions of NEORIS and First Derivative during Q4 2024. NEORIS bolsters EPAM's presence and expertise in Latin America, while First Derivative strengthens its financial services consulting offerings. These acquisitions are pivotal in solidifying EPAM's market position and expanding its service portfolio.

The company is actively leveraging AI and Generative AI (GenAI) to deliver transformative solutions that accelerate clients' digital innovation and sharpen their competitive edge. Through advanced platforms like EPAM AI/RUN™ and initiatives from the DIALX Lab, EPAM integrates cutting-edge AI technologies into tailored business strategies, driving significant industry impact and fostering continuous innovation.

Capital Allocation

EPAM demonstrates a strong commitment to shareholder value through its capital allocation strategies. In Q4 2024, the company repurchased 53 thousand shares of its common stock for $13.0 million. Over the full year 2024, EPAM repurchased 1.854 million shares for a total of $398.0 million. As of December 31, 2024, the company had $437.0 million remaining under its share repurchase authorization, underscoring its dedication to returning value to its shareholders.

EPAM Systems continues to solidify its status as a leader in digital transformation services, effectively combining three decades of software engineering excellence with contemporary consulting capabilities to empower clients in navigating technological shifts and achieving sustainable competitive advantages across diverse global industries.