Grid Dynamics Clears Guidance and Beats Margin Target

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter revenue was a record $114.3 million, above the high end of the $112.0 million to $114.0 million range, with GAAP gross margin at 40.3%.

Grid Dynamics Holdings (GDYN), an enterprise AI and digital-transformation services firm, reported third-quarter 2026 revenue of $114.3 million, above the high end of the $112.0 million to $114.0 million range it set in July.

Sequential growth accelerated to 5.7% from 3.9% in the second quarter, and year-over-year growth rose to 9.7% from 7.0%. The company said the quarter delivered record revenue and record EBITDA.

GAAP gross profit was $46.1 million, or 40.3% of revenues, compared with $34.7 million, or 33.3% of revenues, a year earlier. Non-GAAP gross profit was $46.5 million, or 40.6% of revenues. Chief Executive Officer Leonard Livschitz said the company exceeded its 300 basis point margin commitment a quarter sooner than planned and called the result a reflection of enhancements to the business model rather than a one-time event.

Non-GAAP EBITDA was a record $22.9 million, or 20.0% of revenues, compared with $12.7 million, or 12.2% of revenues, in the third quarter of 2025. GAAP net income was $6.2 million, or $0.08 a share, on 81.9 million diluted weighted-average shares, compared with $1.2 million, or $0.01 a share, a year earlier. Non-GAAP net income was $14.7 million, or $0.18 a diluted share.

AI revenue reached a record 31% of total revenue, after 30.7% in the second quarter and 29.3% in the first quarter. The company said AI revenue has grown over 45% year-over-year for three consecutive quarters and that AI-native programs are in production at some of the world’s largest enterprises.

Technology, Media and Telecom remained the principal growth driver, contributing 32.3% of revenue, or $37.0 million, up 29.3% year-over-year and 7.6% sequentially. The company attributed the increase to higher demand from its largest technology customers as well as new customers. Retail was the second-largest vertical at 27.2% of revenue, or $31.1 million, up 13.3% year-over-year and 8.5% sequentially, which the company said was driven by increased demand from specialty retailers.

Finance contributed 22.5% of revenue, or $25.7 million, up 3.9% sequentially, supported by ongoing demand from global capital-market customers. CPG and Manufacturing was 10.9% of revenue, or $12.5 million, up 5.8% sequentially. Healthcare and Pharma contributed 1.8% of revenue, or $2.1 million, and Other 5.3%, or $6.0 million.

Cash and cash equivalents totaled $304.3 million as of September 30, 2026, compared with $342.1 million as of December 31, 2025. Headcount was 4,559, compared with 4,971 a year earlier. The company spent $6.7 million to repurchase 0.9 million shares in the third quarter under its $50 million program.

For the fourth quarter of 2026, Grid Dynamics expects revenue 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 million to 82 million and a diluted share count of 82 million to 83 million. Livschitz said the company enters the fourth quarter with confidence and a positive backdrop for 2027.