EPAM Systems Scales AI‑Native Services; Q4 Revenue and Margins Improve

Newtown Report: EPAM scales AI-native business

EPAM Systems reports strong fourth-quarter and full-year results while centering its growth strategy on AI-native services and client transformation. The software engineering and digital transformation firm says Q4 revenues reach $1.408 billion, up 12.8% year‑over‑year, and it highlights a shift in revenue mix toward AI-related engagements. Management frames the quarter as evidence that investments in AI capabilities and delivery are beginning to translate into measurable commercial traction.

Building an AI-native delivery engine

EPAM is intensifying efforts to embed AI into its core delivery model and to position itself as a partner for large-scale enterprise AI adoption. The company says organic constant‑currency revenue growth is 5.6% in the quarter and attributes margin improvement to increased AI-native work and deeper client transformation projects. Executives describe this as a transition from advisory and experimentation to scaled build-and-run engagements.

The firm reports expansion in operating profitability as a byproduct of those AI engagements and disciplined execution. GAAP income from operations is $149.3 million (10.6% of revenues), a $12.7 million increase versus the prior-year quarter, while non‑GAAP operating income rises to $230.0 million (16.3% of revenues), up $21.8 million. Management links non‑GAAP margin gains to higher‑value AI projects and improved delivery efficiency driven by reusable AI assets and platforms.

EPAM says its strategic focus combines productized AI offerings, continued investment in talent, and targeted partnerships to accelerate client outcomes. CEO and President Balazs Fejes is quoted as saying the company is “scaling and accelerating AI‑native revenues” and is investing in AI innovation, talent development and alliances to win in what it terms the AI‑Native Build era. The company emphasizes sustainable growth and execution discipline as it moves from pilot engagements to enterprise deployments.

Other financial details

For full year 2025, EPAM reports revenues of $5.457 billion, up 15.4% year‑over‑year. Full‑year non‑GAAP operating margin stands at 15.2%.

Earnings per share details

EPAM posts Q4 GAAP diluted EPS of $1.98, up 10.0%, and non‑GAAP diluted EPS of $3.26, up 14.8%. Full‑year GAAP diluted EPS is $6.72, down 14.3%, while full‑year non‑GAAP diluted EPS is $11.50, up 5.9%. Management reiterates focus on scaling AI offerings as a driver of future margins.