5 Insightful Analyst Questions From EPAM’s Q2 Earnings Call

August 14, 2025 at 01:32 AM EDT

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EPAM’s second quarter was marked by broad-based revenue growth and a positive market reaction, fueled by accelerating demand for its AI-native services and continued recovery in discretionary spending. Management highlighted improved performance across all major industry verticals and geographies, with notable contributions from financial services and software clients. CEO Arkadiy Dobkin pointed to the company’s “steady improvements in our core business and a return to much more consistent performance,” emphasizing that new client wins and expanded engagements in complex AI-driven programs were key drivers of the quarter’s results.

Is now the time to buy EPAM? Find out in our full research report (it’s free).

EPAM (EPAM) Q2 CY2025 Highlights:

Revenue: $1.35 billion vs analyst estimates of $1.33 billion (18% year-on-year growth, 1.5% beat)
Adjusted EPS: $2.77 vs analyst estimates of $2.61 (6% beat)
Adjusted EBITDA: $216.3 million vs analyst estimates of $211.7 million (16% margin, 2.2% beat)
Revenue Guidance for Q3 CY2025 is $1.37 billion at the midpoint, above analyst estimates of $1.35 billion
Management raised its full-year Adjusted EPS guidance to $11.04 at the midpoint, a 2% increase
Operating Margin: 9.3%, down from 10.5% in the same quarter last year
Constant Currency Revenue rose 16.1% year on year (-1.7% in the same quarter last year)
Market Capitalization: $8.96 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From EPAM’s Q2 Earnings Call

Bryan C. Bergin (TD Cowen) questioned the balance between new talent additions and bench optimization. CFO Jason Peterson explained that headcount growth is being managed to improve utilization, with further net additions anticipated later in the year.
Margaret Marie Niesen Nolan (William Blair) asked about the scope and progress of the AI upskilling initiative. President Balazs Fejes stated over 80% of employees have participated, with ongoing efforts to certify both technical and client-facing teams.
David Michael Grossman (Stifel) inquired if fourth-quarter margin levels could serve as a baseline for 2026. Peterson responded that while seasonality affects Q4, the company is targeting improved profitability and remains focused on appropriate pricing and utilization.
Surinder Singh Thind (Jefferies) raised concerns about the impact of new AI tools on delivery models and team composition. Fejes and Dobkin explained that a balanced workforce remains key, with a continued need for both senior and junior engineers as delivery models evolve.
Puneet Jain (JPMorgan) asked about differences in AI adoption by vertical. Fejes stated that adoption is broad-based across industries, with varying levels of engagement but no significant differences in vertical performance linked solely to AI uptake.

Catalysts in Upcoming Quarters

In upcoming quarters, our analysts will monitor (1) the pace of enterprise AI adoption and expansion of large-scale transformation programs, (2) the impact of ongoing workforce upskilling on project execution and profitability, and (3) the integration progress and revenue contribution of recent acquisitions. Progress in optimizing global delivery hubs and adapting to changing client engagement models will also be closely watched as indicators of sustained momentum.

EPAM currently trades at $162.00, up from $151.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).

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5 Insightful Analyst Questions From EPAM’s Q2 Earnings Call

EPAM (EPAM) Q2 CY2025 Highlights:

Our Top 5 Analyst Questions From EPAM’s Q2 Earnings Call

Catalysts in Upcoming Quarters

High-Quality Stocks for All Market Conditions

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