EPAM Systems Q4 Revenue Up 12.8% with $105M AI-Native Sales
EPAM generated more than $105 million in tightly defined AI-native revenues in Q4 and plans to exceed $600 million in AI-native sales in 2026. Q4 revenue reached $1.4 billion (up 12.8% reported, 5.6% organic) with $283 million operating cash flow and $224 million in share repurchases.
1. Q4 Revenue and AI-Native Growth
EPAM reported Q4 revenue of $1.40 billion, up 12.8% on a reported basis and 5.6% organically. The company recognized over $105 million in tightly defined AI-native revenues and aims to exceed $600 million in AI-native sales in 2026.
2. Profitability and Cash Flow
Operating cash flow rose to $283 million in Q4, with free cash flow at $268 million. GAAP gross margin was 30.1% and non-GAAP gross margin 31.7%, while GAAP EPS was $1.98 and non-GAAP EPS $3.26. EPAM repurchased $224 million of stock during the quarter.
3. Industry and Geographic Performance
Five of six verticals delivered year-over-year growth led by Financial Services (+19.8% reported) and Emerging Verticals (+19.1%). Geographically, the Americas accounted for 58% of revenue (up 7.6% reported), EMEA 40% (up 21.8%), and APAC 2% (up 0.6%).
4. 2026 Guidance and Outlook
For 2026, EPAM guides revenue growth of 4.5%–7.5%, including a 1.5% foreign exchange tailwind and implying 3%–6% organic growth. The outlook reflects a 1% drag from NEORIS’s largest client in Mexico, with GAAP operating margin projected at 10%–11% and non-GAAP at 15%–16%.