Grid Dynamics (GDYN) Q3 2026 Earnings
How Did GDYN Stock React to Q3 2026 Earnings?
Did GDYN Beat Earnings? Q3 2026 Results
Yes. Grid Dynamics reported Q3 2026 earnings of $0.18 a share on Oct 29, 2026, beating the $0.13 consensus estimate by 37.7%. Revenue was $114.3M against a $112.8M estimate.
Grid Dynamics Holdings delivered a strong third quarter of 2026, beating analyst expectations on both the top and bottom lines as accelerating AI demand and sharply expanded margins drove the outperformance. The company posted adjusted non-GAAP earnings of $0.18 per diluted share, clearing the $0.13 consensus by 37.72%, while revenue of $114.29 million edged ahead of the $112.77 million estimate by 1.35% and grew 9.7% year-over-year. The clearest engine behind the results was AI-driven work, which has grown more than 45% year-over-year for three consecutive quarters and now accounts for 31% of total revenue, with the Technology, Media and Telecom vertical, the largest segment at 32.3% of revenue, expanding 29.3% year-over-year. Margin improvement was equally notable, with non-GAAP EBITDA reaching a 20.0% margin versus 12.2% a year earlier, which management said exceeded its 300 basis point improvement target ahead of schedule. Looking ahead, Grid Dynamics guided Q4 2026 revenue to $113.50 million to $115.50 million, with management expressing confidence heading into year-end and signaling a positive outlook for 2027.
- AI revenue grew over 45% year-over-year for three consecutive quarters and reached 31% of total revenue
- TMT revenue rose 29.3% YoY and 7.6% sequentially on higher demand from the largest technology customers and new customers
- Retail revenue rose 13.3% YoY and 8.5% sequentially on increased demand from specialty retailers
- Finance revenue rose 3.9% sequentially on ongoing demand from global capital markets customers
- CPG/Manufacturing revenue rose 5.8% sequentially
- GAAP gross margin expanded to 40.3% from 33.3% a year earlier
- Non-GAAP EBITDA margin reached 20.0% versus 12.2% a year earlier, exceeding the 300 bps margin commitment a quarter early
- Revenue grew while headcount fell to 4,559 from 4,971 a year earlier
“Q3 2026 was a pivotal quarter for Grid Dynamics, delivering record revenue, record EBITDA, and AI-native programs in production at some of the world's largest enterprises. AI revenue has grown over 45% year-over-year for three consecutive quarters and is now 31% of total revenue.”
Grid Dynamics CEO, on the earnings call
What Is Grid Dynamics's Outlook?
For the fourth quarter of 2026, Grid Dynamics expects revenues of $113.5 million to $115.5 million and Non-GAAP EBITDA of $20.0 million to $22.0 million. It expects a basic share count of 81–82 million and a diluted share count of 82–83 million. The company did not provide GAAP net income targets because certain excluded items are difficult to predict. Management said it enters the fourth quarter with confidence and sees a positive backdrop for 2027.
GDYN YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $114.3M | $104.2M | +9.7% |
| Gross Profit | $46.1M | $34.7M | +32.8% |
| Operating Income | $9.1M | $228,923 | +3,891.3% |
| Net Income | $6.2M | $1.2M | +423.7% |
GDYN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.