Corrects second bullet point of Result Drivers to clarify that the 30% growth refers to full-year 2025, not Q4

Overview

• AI and digital transformation firm's Q4 revenue slightly beat analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• AI revenue contributed 25% to Q4 revenues, showing significant growth

Outlook

• Grid Dynamics expects Q1 2026 revenues between $103 mln and $104 mln

• Company anticipates full-year 2026 revenues of $435 mln to $465 mln

Result Drivers

• TMT VERTICAL - Technology, Media, and Telecom vertical was a key growth driver, with revenues increasing 5.3% sequentially and 27.5% year-over-year, driven by top technology customers

• AI REVENUE GROWTH - AI revenues for full-year 2025 grew 30% year-over-year, while AI contributed 25% to Q4 revenues, driven by demand from leading AI customers

• FINANCE VERTICAL - Finance vertical performed strongly due to robust demand from fintech and banking customers, contributing 22.9% to Q4 revenues

Company press release: ID:nBw7BNZ7ka

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Grid Dynamics Holdings Inc is $13.25, about 84% above its March 4 closing price of $7.20

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)