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GDYN Grid Dynamics+40.8%Stock moveEarnings and guidance

Grid Dynamics Stock Soars 41% After Record Third-Quarter Results

The company reported record quarterly revenue and EBITDA and said it exceeded its margin target a quarter early, and Needham raised its price target to $15 from $10.

By Zintick Team · Editor: Kratik Mehta
Published

Technicians checking server in the data center hall using a laptop and a digital tablet
Photo: Juice Flair/Shutterstock.com

Key points

  • Grid Dynamics rose 40.8% on Friday, Oct. 30, after record third-quarter results
  • Q3 revenue of $114.3 million topped the $112.0 million to $114.0 million guidance range
  • Non-GAAP EBITDA reached $22.9 million, or 20.0% of revenue, up from 12.2% a year earlier
  • Needham raised its price target to $15 from $10 and kept its Buy rating

Grid Dynamics (Nasdaq: GDYN) shares rose 40.8% on Friday, Oct. 30, 2026, closing at $13.36 from a previous close of $9.49, while the S&P 500 ETF (SPY) fell 1.77%. The move followed the company's third-quarter results, which it released on Oct. 29 in an 8-K that furnished a press release as Exhibit 99.1. Volume was about 9.8 times its normal level.

Revenue topped the company's guidance

The company reported third-quarter revenue of $114.3 million, above the top of its $112.0 million to $114.0 million guidance range given in July. Revenue rose 9.7% from a year earlier and 5.7% from the second quarter. GAAP net income was $6.2 million, or $0.08 per diluted share, compared with $1.2 million, or $0.01, a year earlier. Non-GAAP net income was $14.7 million, or $0.18 per diluted share, against $8.2 million, or $0.09, a year earlier.

Margins and EBITDA improved

Non-GAAP EBITDA was $22.9 million, or 20.0% of revenue, compared with $12.7 million, or 12.2%, a year earlier. GAAP gross margin was 40.3%. Chief Executive Leonard Livschitz said the company exceeded its 300-basis-point margin commitment a quarter sooner than planned. AI revenue was 31% of total revenue.

Outlook and analyst reaction

For the fourth quarter, the company expects revenue of $113.5 million to $115.5 million and non-GAAP EBITDA of $20.0 million to $22.0 million. Before the open on Friday, Needham kept its Buy rating and raised its price target to $15.00 from $10.00.

The company had $304.3 million in cash and cash equivalents as of Sept. 30, 2026. It also filed its 10-Q on Oct. 29.

Sources

Written with AI from SEC filings and market data, and checked against those sources before publishing. Our editorial standards.

GDYN page →

Filings, figures and price history are on the Grid Dynamics page.