Short answer
EPAM Systems (EPAM) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $5.5B (+15.4% year over year) and net income of $378M.
- Top risk flagged: ~14,100 personnel in Ukraine/Belarus as of Dec 31, 2025; ongoing Russia-Ukraine war threatens operations, facilities, and service delivery
FY2025 key financial metrics · XBRL
- Revenue
- $5.5B
- +15.4% YoY
- Net income
- $378M
- −16.9% YoY
- Operating margin
- 9.5%
- −2.0 pp YoY
- EPS (diluted)
- $6.72
- −14.3% YoY
- ROE
- 10.3%
- −2.3 pp YoY
- Operating cash flow
- $655M
- +17.1% YoY
Source: XBRL data from the EPAM Systems (EPAM) FY2025 10-K on SEC EDGAR. USD.
EPAM Systems FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Global IT services firm delivering end-to-end digital engineering, cloud, and AI-enabled transformation; increasingly positioning as "AI-native" solutions provider
- EPAM AI/RUN™ platform and DIALX Lab™ initiative highlighted as key AI delivery vehicles; "end-to-end AI-native transformation" cited as primary strategic focus this year
- India surpassed all other locations as largest delivery hub with ~12,200 professionals, adding ~2,150 since Dec 2024; total headcount grew to ~62,850 from ~61,200
- Revenue concentration declining: top 5 clients fell to 13.7% of revenue (vs 15.8% in 2024), top 10 to 21.6% (vs 23.4%), reflecting deliberate client base diversification
- Ukraine delivery workforce essentially flat at ~8,750 vs 8,764 a year prior, notable stability despite ongoing war now entering its fourth year
Management Discussion & Analysis
- Revenue $5.457B, up 15.4% YoY; organic growth ~5%, acquisitions (NEORIS, First Derivative) added 9.2%, FX tailwind +1.3%
- Operating margin 9.5% vs 11.5%; net margin 6.9% vs 9.6%; cost of revenues rose to 71.2% vs 69.3% of revenue
- Best segment: Europe +23.1% revenue to $2.291B; worst: Americas operating margin contracted to 16.5% vs 18.9%, profit down $19.3M
- Operating cash flow $654.9M vs $559.2M; capex $42.2M; share buybacks $660.6M vs $398.0M; no dividends; cash $1.296B
- Key risks: Ukraine war ongoing, effective tax rate rose to 25.3% vs 22.2%, $10.1M humanitarian commitment remaining; management confident liquidity sufficient 12+ months
Risk Factors
- ~14,100 personnel in Ukraine/Belarus as of Dec 31, 2025; ongoing Russia-Ukraine war threatens operations, facilities, and service delivery
- OFAC sanctions and anti-bribery laws (FCPA equivalent) create compliance exposure across operations in Belarus, Ukraine, Kazakhstan, and other emerging markets
- AI-driven tools enabling clients to self-develop software internally, reducing demand for EPAM's core IT services and pressuring pricing
- Belarus High-Technologies Park tax exemption (full income/VAT exemption until 2049) at risk if Belarus policy changes, threatening cost structure
- Key-person dependency on senior executives with no guarantee of effective succession; non-compete enforceability uncertain across multiple jurisdictions
Generated from the filing text; verify against the original. How to read a 10-K
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