EPAM beats Q4 expectations as AI-native revenue becomes a growth focus

Transcript intelligence

What changed

AI-native revenue was identified as a major growth engine, reaching $105 million in Q4 with a 2026 target above $600 million. Management also highlighted a roughly 100-basis-point organic-growth headwind from the largest NEORIS client and longer procurement cycles.

Guidance delta

Management maintained 2026 revenue growth guidance of 4.5%-7.5%, including 3%-6% organic growth; the prior quarter had raised FY 2025 organic growth guidance.

Key takeaways

• Q4 2025 revenue grew 12.8% year over year and surpassed expectations.
• Pure AI-native revenue reached $105 million in Q4, with a target above $600 million in 2026.
• Management maintained 2026 revenue growth guidance of 4.5%-7.5%, including 3%-6% organic growth.
• The largest NEORIS client decline is expected to reduce organic growth by about 100 basis points.
• The company plans continued investment in AI, vertical accelerators, partnerships, and share repurchases.

Management priorities

• Scale AI-native transformation offerings and the AI on Transform playbook.
• Expand vertical expertise and industry-specific accelerators.
• Use partnerships with Microsoft, AWS, Google Cloud, and Cursor to extend AI capabilities.
• Pursue small tuck-in acquisitions and continue active share repurchases in H1 2026.