Grid Dynamics Q2 revenue rises on TMT growth
Grid Dynamics Q2 revenue rises on TMT growth
Overview
Enterprise AI solutions provider's Q2 revenue up 7% yr/yr, beating analyst expectations
Adjusted EPS for Q2 met analyst consensus
Adjusted EBITDA for Q2 beat analyst expectations
Outlook
Grid Dynamics expects Q3 2026 revenue between $112.0 mln and $114.0 mln
Company sees Q3 2026 non-GAAP EBITDA of $16.5 mln to $17.5 mln
Grid Dynamics expects full-year 2026 revenue between $435.0 mln and $465.0 mln
Result Drivers
TMT DEMAND - Technology, Media and Telecom vertical was principal growth driver, with revenue up 36.4% yr/yr and 11.7% sequentially, driven by strong demand from largest technology customers
AI REVENUE GROWTH - AI revenue accounted for over 30% of total revenue and grew more than 50% yr/yr for the second consecutive quarter as clients adopted enterprise AI workloads in production
MARGIN EXPANSION - Margin gains attributed to productivity improvements from AI-Native Delivery and disciplined cost-control execution
Company press release: ID:nBw1YNWlMa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $108.20 mln | $106.58 mln (6 Analysts) |
Q2 Adjusted EPS | Meet | $0.11 | $0.11 (6 Analysts) |
Q2 EPS |
| $0.03 |
|
Q2 Adjusted Net Income | Slight Miss* | $9 mln | $9.03 mln (5 Analysts) |
Q2 Adjusted EBITDA | Beat | $14.70 mln | $14.36 mln (6 Analysts) |
Q2 Adjusted Gross Profit |
| $40 mln |
|
Q2 Gross Profit |
| $39.60 mln |
|
*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 5 "strong buy" or "buy", 1 "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 $8.00, about 17.6% above its July 29 closing price of $6.80
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
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July 30 - OpenAI cuts prices on smaller models as businesses scrutinize AI spend
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.)
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Grid Dynamics Q2 revenue rises on TMT growth
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