Grid Dynamics Q4 revenue slightly beats expectations

Grid Dynamics Holdings

05/03/2026 21:17

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

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$106.2 mln
$105.92 mln (6 Analysts)
Q4 Adjusted EPS
Beat
$0.10
$0.09 (6 Analysts)
Q4 Adjusted Net Income
Beat
$8.7 mln
$7.93 mln (5 Analysts)
Q4 Adjusted EBITDA
Beat
$13.7 mln
$13.24 mln (6 Analysts)
Q4 Adjusted Gross Profit
$36.6 mln
Q4 Gross Profit
$36.1 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 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.)