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what it is
It helps big companies build search, analytics, and software automation systems with AI, cloud, data science, and DevOps tools.
how it gets paid
Last year Grid Dynamics Hold made $412M in revenue.
why it's growing
Revenue grew 17.5% last year. The latest quarter printed large vs. prior year revenue growth on a smaller base; EPS moved sharply versus a thin prior comparison — verify the filing rather than quoting feed “1000%” EPS. Gross margin was 34.7%.
what just happened
About $103M in quarterly revenue and $0.11 EPS show a business that is growing fast and still barely profitable.
At a glance
B+ balance sheet — decent shape, but not bulletproof
35/100 earnings predictability — expect surprises
64.7x trailing p/e — you're paying up for this one
0.8% return on capital — nothing to write home about
$0.05 fy2024 eps est
xvary composite: 43/100 — below average
What they do
It helps big companies build search, analytics, and software automation systems with AI, cloud, data science, and DevOps tools.
Grid Dynamics sits inside Fortune 1000 systems. It sells technical help for search, analytics, and release automation, so your team gets an outside crew that already knows the mess. With 4,730 employees, it can staff big projects, and ripping those tools out later is painful.
How they make money
$412M
annual revenue · their business grew +17.5% last year
total revenue
$412M
+17.5%
The products that matter
enterprise AI consulting
AI Platform Services
$90M · about 22% of revenue
This business generated more than $90M in 2025 and grew 30% from last year. It's the growth engine the market cares about.
30% growth
cloud and software engineering
Digital Transformation
~$322M · about 78% of revenue
This is still the main business by dollars. At roughly $322M of sales, it pays the bills, but it also keeps the company tied to consulting economics.
core revenue base
Key numbers
3.5%
operating margin
You keep 3.5 cents of operating profit per dollar of sales. On $412M of revenue, that is about $14.4M.
0.8%
return on capital
The business earns less than 1 cent for each dollar tied up in the company. That is thin even by software standards.
1.5x
beta
A 1.5 beta means the shares tend to swing 50% harder than the market. Your portfolio feels that.
$8M
long-term debt
Long-term debt is only $8M, so leverage is not the main problem.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $8M (2% of capital)
B+ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for GDYN right now.
source: institutional data · return history unavailable
What just happened
beat estimates
~$103M in quarterly revenue and $0.11 EPS show a business that is growing fast and still barely profitable.
Revenue rose sharply vs. prior year versus a smaller prior quarter — confirm the window in the 10-Q. EPS improved off a thin base; avoid literal “1000%” EPS labels without checking the denominator. Gross margin was 34.7%. One quarter still has to prove out against roughly $412M of trailing annual revenue.
$103M
revenue
$0.11
eps
34.7%
gross margin
quarter size
The ~$103M quarter is material against roughly $412M of trailing annual revenue — use the filing for the exact comparable labels.
source: EDGAR SEC filings
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What could go wrong
the #1 risk is ai optimism outrunning consulting economics.
med
Near-term revenue came in light where it mattered most
Q1 2026 revenue guidance of $103–$104M was about $3M below the $106.6M consensus. When the stock trades on future upside, a shortfall in the next quarter matters more than a clean print in the last one.
If management starts missing the early quarters, the market can stop giving the company a premium multiple before the full-year guide has time to prove itself.
med
The margin profile still says services business
Gross margin is 34.7%. That's respectable for consulting. It is nowhere near the economics investors usually reward with software-style valuations.
If revenue grows but gross margin stays around 34.7%, earnings power can lag the story you're paying for.
med
AI is the headline, not yet the whole business
AI Platform Services grew 30% to more than $90M in 2025, but that was still only about 22% of revenue. Most sales still come from broader digital transformation work.
That means roughly four-fifths of the business still depends on the less glamorous part of enterprise IT spending.
med
The stock already behaves like a small cap with opinions
The 52-week range is $6–$17, and price stability is 10 / 100. Even if the business improves, the stock can still move around far more than the fundamentals suggest.
Volatility can force the market to reprice the name faster than management can execute quarter to quarter.
AI is only about 22% of revenue today. Until that mix gets larger or the margin structure improves, the stock is asking you to pay up for an outcome the income statement does not fully show yet.
source: institutional data · regulatory filings · risk analysis
Pay attention to
next quarter
Does q1 actually land inside $103–$104M
Management already lowered the temperature with the guide. If reported revenue lands below that range, the credibility hit gets bigger fast.
ai mix
Can the $90M AI business become big enough to matter
Thirty percent growth sounds great. You still need that business to become more than roughly one-fifth of sales before it can reshape the whole margin profile.
gross margin
34.7% needs to move up, not just stay stable
If AI work is really higher value, you should see it in the margin line. Flat gross margin would mean the mix shift is not changing the economics yet.
full-year guide
Watch whether $435M–$465M starts to narrow down
A wide annual range after a soft first-quarter guide tells you management still needs later quarters to do the heavy lifting.
Analyst rankings
earnings predictability
35 / 100
Low predictability means quarter-to-quarter results are harder to model. In human-speak, analysts do not trust this business to produce smooth numbers yet.
source: institutional data
Institutional activity
institutional ownership data for GDYN is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$10
current price
n/a
target midpoint · n/a from current
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