The Q4 revenue guidance midpoint of $114.5M is above the $112.8M consensus, implying continued sequential growth. Watch for further margin expansion as AI revenue mix increases and headcount rationalization continues. The $14.5M remaining on the buyback authorization provides ongoing capital return support.
Price Chart
Executive Summary
Grid Dynamics reported Q3 2026 revenue of $114.3M, above the high end of its $112-114M guidance and consensus of $112.8M, with non-GAAP EPS of $0.18 beating the $0.13 consensus. Record EBITDA margin of 20.0% and gross margin of 40.3% exceeded the company's 300bps margin improvement commitment a quarter early, driven by AI revenue reaching 31% of total revenue.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $114.3M, up 9.7% YoY and 5.7% sequentially, above guidance of $112-114M
- Non-GAAP EPS of $0.18 vs consensus $0.13, a 38.5% beat
- GAAP net income of $6.2M ($0.08/diluted share) vs $1.2M ($0.01) in Q3 2025
- Non-GAAP EBITDA of $22.9M (20.0% of revenue) vs $12.7M (12.2%) in Q3 2025
- AI revenue reached 31% of total revenue, growing over 45% YoY for three consecutive quarters
- GAAP gross margin expanded to 40.3% from 33.3% YoY; non-GAAP gross margin 40.6% from 33.8%
- Q4 2026 revenue guidance of $113.5-115.5M, midpoint of $114.5M above consensus of $112.8M
- Company spent $35.5M repurchasing 5.3M shares YTD through Q3 2026 under a $50M program
- Cash and cash equivalents $304.3M as of Sep 30, 2026, down from $342.1M at Dec 31, 2025
- Headcount reduced to 4,559 from 4,971 YoY
Financial Impact
Revenue beat of ~$1.5M vs consensus; EPS beat of $0.05 vs consensus; EBITDA margin expanded ~780bps YoY
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Technology, Media and Telecom | $37.0M | +29.3% |
| Retail | $31.1M | +13.3% |
| Finance | $25.7M | +0.3% |
| CPG/Manufacturing | $12.5M | +0.2% |
| Healthcare and Pharma | $2.1M | -14.5% |
| Other | $6.0M | -21.7% |
Risk Factors
- Revenue concentration in TMT and Retail verticals (59.5% combined) creates customer concentration risk
- Headcount reduction of 8.3% YoY may signal capacity constraints if demand accelerates
- Cash burn of ~$38M YTD from operations and buybacks reduces balance sheet flexibility
- Restructuring costs of $1.985M in Q3 and $6.278M YTD indicate ongoing cost transformation
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001743725-26-000029 |
| Document: gdyn-20261029.htm | 0001743725-26-000029 |
| Document: 0001743725-26-000029-index-headers.html | 0001743725-26-000029 |
| Document: 0001743725-26-000029-index.html | 0001743725-26-000029 |
| Document: 0001743725-26-000029.txt | 0001743725-26-000029 |
| 8-K Data (Synthetic) | 0001743725-26-000029 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 30, 2026 today | Insider Cluster | $8.49 | awaiting T+20 | awaiting T+20 | $13.36 (−57.36%) |
Oct 30, 2026 today | 144 | $13.23 | awaiting T+20 | awaiting T+20 | $13.36 (+0.96%) |
Oct 30, 2026 today | 144 | $13.38 | awaiting T+20 | awaiting T+20 | $13.36 (−0.15%) |
Oct 30, 2026 today | 144 | $13.32 | awaiting T+20 | awaiting T+20 | $13.36 (+0.29%) |
Oct 29, 2026 1d ago | 8-K | $10.00 | awaiting T+20 | awaiting T+20 | $13.36 (+33.60%) |
Oct 29, 2026 1d ago | 144 | $9.91 | awaiting T+20 | awaiting T+20 | $13.36 (+34.81%) |
Oct 8, 2026 22d ago | 144 | $7.95 | awaiting T+20 | awaiting T+20 | $13.36 (+68.05%) |
Sep 22, 2026 5w ago | Institutional Cluster | $7.78 $8.22 | ▲ +5.66% | ▲ +6.22% | $13.36 (+71.72%) |
Jun 11, 2026 20w ago | Institutional Cluster | $6.43 $5.92 | ▼ −7.93% | ▼ −9.82% | $13.36 (+107.78%) |
Mar 5, 2026 34w ago | 8-K | $6.65 $5.69 | ▼ −14.44% | ▼ −12.39% | $13.36 (+100.90%) |
US Market Status
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