EPAM Systems Inc (EPAM) stock plunged 5.01% in Friday's pre-market trading session, following the company's fourth-quarter and full-year 2024 earnings release. While EPAM reported better-than-expected results and saw improvement in client sentiment, its cautious outlook for 2025 appears to have dampened investor sentiment.

For the fourth quarter of 2024, EPAM reported revenues of $1.25 billion, up 7.9% year-over-year, driven by contributions from recent acquisitions NEORIS and First Derivative. On an organic constant currency basis, revenues grew 1% year-over-year, marking a return to organic growth after a challenging 2023. The company's adjusted earnings per share (EPS) of $2.84 also exceeded expectations.

Looking ahead to 2025, EPAM provided revenue growth guidance of 10% to 14%, with an inorganic contribution of approximately 10% from acquisitions. However, the company expects adjusted operating margins to be in the range of 14.5% to 15.5%, reflecting continued investments in talent retention, GenAI platforms, and integration efforts from recent acquisitions.