Grid Dynamics Holdings Inc - Class A
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.97%.
Did GDYN Beat Earnings? Q2 2026 Results
Grid Dynamics Holdings delivered a solid second quarter, posting non-GAAP diluted EPS of $0.11 against a consensus estimate of $0.11, a beat of 4.07%, while revenue of $108.16 million edged past the $106.58 million consensus by 1.49% and grew 7.0% year-over-year. The clearest engine behind those results was AI, with AI-related revenue reaching 30.7% of total sales and growing more than 50% year-over-year for the second consecutive quarter, as enterprise clients accelerated the shift of AI workloads from pilots to production. The Technology, Media and Telecom vertical led verticals with 36.4% year-over-year growth, contributing 31.8% of revenues. GAAP gross margin expanded to 36.6% from 34.1% a year ago, reflecting productivity gains from AI-Native Delivery, though GAAP net income declined to $2.85 million from $5.27 million due in part to lower other income and restructuring charges. Non-GAAP EBITDA improved to $14.72 million from $12.74 million. Looking ahead, management guided Q3 2026 revenue of $112.00 to $114.00 million and reaffirmed full-year guidance of $435.00 to $465.00 million, with analysts maintaining a buy-oriented view on the stock.
- AI revenue reached 30.7% of total company revenue, growing over 50% year-over-year for a second consecutive quarter
- TMT vertical drove principal growth with 36.4% year-over-year increase from largest technology customers
- Top accounts delivered double-digit quarter-over-quarter growth
- Productivity gains from AI-Native Delivery improving margins
- Disciplined cost-control execution
“We delivered another solid quarter. Revenue came in above the high end of our guidance range. AI revenue crossed 30% of total company revenue for the first time and grew over 50% year-over-year for a second consecutive quarter. Our AI-based GAIN platforms are winning wider enterprise adoption as clients transition enterprise AI workloads from pilots to production. Our top accounts continue to drive our growth. Several of them delivered double-digit quarter-over-quarter growth. Additionally, Technology and Financial services verticals now define our most strategic customer relationships. These are precisely the sectors where AI adoption is moving the fastest and where our capabilities are the most differentiated. We also strengthened our Physical AI capabilities with the addition of Ekumen, giving us end-to-end depth from robotics software through enterprise-scale deployment.”
Grid Dynamics CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2026, Grid Dynamics expects revenues of $112.0 to $114.0 million and non-GAAP EBITDA of $16.5 to $17.5 million, with basic share count of 81-82 million and diluted share count of 83-84 million. For full-year 2026, the company expects revenues of $435.0 to $465.0 million. Management confirmed the company is on track to deliver its 300 basis point margin commitment.
GDYN YoY Financials
GDYN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.