Grid Dynamics Posts Record Revenue of $114.3 Million in Third Quarter
Key Facts
Grid Dynamics reported revenue of $114.3 million in the third quarter ended September 30, 2026, up 9.7% year over year and 5.7% from the previous quarter, according to the company’s release published via Business Wire. Revenue exceeded the upper end of its previous guidance range of $112.0 million to $114.0 million. The results show business growth and improved profitability during the period, alongside the company’s reliance on enterprise demand across multiple sectors. The company’s shares closed at $8.75 on October 28, according to EL7 data.
The technology, media and telecommunications segment was the main growth driver, accounting for 32.3% of quarterly revenue. Revenue in the segment rose 29.3% year over year and 7.6% from the second quarter, according to the release. The company attributed the performance to stronger demand from major technology customers, as well as new clients. The segment’s growth indicates that most of the revenue increase came from services for technology, telecommunications and media companies. The release did not specify how much of the increase came from existing customers versus new ones.
Retail remained the second-largest segment, accounting for 27.2% of total revenue. Its revenue grew 13.3% year over year and 8.5% quarter over quarter, with the company saying the increase was driven by greater demand from specialty retailers. The performance placed retail alongside technology, media and telecommunications among the sources of growth the company cited for the quarter. Across its broader business, the company said AI revenue had exceeded annual growth of 45% for three consecutive quarters and accounted for 31% of total revenue. That share points to the growing weight of AI services in the company’s business mix, alongside the segments for which it reported growth details.
Net income under generally accepted accounting principles (GAAP) rose to $6.2 million, or $0.08 per share, compared with $1.2 million and $0.01 per share in the third quarter of 2025. On a non-GAAP basis, net income was $14.7 million, or $0.18 per diluted share, versus $8.2 million and $0.09 a year earlier. Adjusted EBITDA was also $22.9 million, representing a margin of 20.0% of revenue, compared with $12.7 million and a 12.2% margin in the year-earlier period. Chief Executive Leonard Livschitz said the company exceeded its commitment to improve margin by 300 basis points a quarter ahead of schedule. The figures show a broad improvement in profitability from a year earlier, while adjusted net income remains separate from the GAAP measure.
The results follow the company’s report of second-quarter revenue of $108.2 million, up 7.0% year over year. Gross margin was 36.6%, compared with 34.1% in the second quarter of 2025. For the nine months ended September 30, 2026, cash flow from operating activities was $30.5 million, compared with $30.7 million in the same period a year earlier. During the same nine months, the company repurchased 5.3 million shares for $35.5 million under a $50 million share repurchase program. These figures put revenue growth and higher earnings in the context of cash flow and capital allocation during the year.
The company expects fourth-quarter 2026 revenue of $113.5 million to $115.5 million and adjusted EBITDA of $20.0 million to $22.0 million. Livschitz said the company is entering the fourth quarter with confidence and that the outlook for 2027 is positive, citing the momentum and structural foundation he said support growth in the coming years. The company’s conference call to discuss the results was scheduled for 4:30 p.m. Eastern Time on October 29, 2026. The stock closed that day at $9.49, up 8.46% during the session, according to MarketScreener.