Grid Dynamics (GDYN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $108.2 million, up 7.0% year-over-year and 3.9% sequentially, exceeding guidance and driven by strong TMT and AI adoption.

• AI revenue accounted for over 30% of total revenue, growing more than 50% year-over-year, with top accounts embedding the GAIN platform as core infrastructure.

• Non-GAAP EBITDA was $14.7 million (13.6% margin), and non-GAAP net income was $9.0 million ($0.11 per share); GAAP net income was $2.9 million ($0.03 per share).

• Physical AI and robotics capabilities were enhanced through the acquisition of Ekumen and expanded partnerships with leading AI and robotics companies.

• Diversification across TMT, Retail, Finance, CPG/Manufacturing, and Healthcare & Pharma sectors continued.

Financial highlights

• Non-GAAP gross profit was $40.0 million (36.9% margin), up from $35.1 million (34.7%) in Q2 2025; GAAP gross margin was 36.6%.

• Cash and equivalents totaled $298.4 million at quarter end, down from $327.5 million in Q1, reflecting share repurchases.

• Diluted share count was 83 million.

• Operating income for Q2 was $1.3 million, compared to a loss of $0.1 million in Q2 2025.

• Net cash provided by operating activities was $14.5 million for the first half, down from $23.7 million in the prior year.

Outlook and guidance

• Q3 2026 revenue guidance: $112 million–$114 million; non-GAAP EBITDA: $16.5 million–$17.5 million.

• Full-year 2026 revenue outlook: $435 million–$465 million.

• Management expects continued growth in TMT and ongoing engagement in CPG/Manufacturing and Retail.