Shares of Grid Dynamics Holdings, Inc. (GDYN) surged 6.58% in after-hours trading following the release of its impressive third-quarter 2025 financial results. The company reported better-than-expected revenue growth and announced a new share repurchase program, boosting investor confidence.

Grid Dynamics posted Q3 revenues of $104.2 million, representing a 19.1% year-over-year increase and slightly beating analysts' expectations of $103.70 million. The company's adjusted earnings per share of $0.09 met Wall Street estimates. Notably, Grid Dynamics saw strong growth in its Technology, Media, and Telecom (TMT) vertical, which surpassed the Finance sector and accounted for 27.4% of revenue. The company's AI-related revenue also showed impressive growth, increasing 10% sequentially and contributing over 25% of organic revenue.

Looking ahead, Grid Dynamics provided an optimistic outlook for Q4 2025, projecting revenues between $105.0 million and $107.0 million. The company also expects to improve its margins by at least 300 basis points over the next 12 months. In a move that further excited investors, Grid Dynamics' board authorized a $50.0 million share repurchase program, signaling confidence in the company's financial position and future prospects. With a strong cash position of $338.6 million and continued growth in key sectors like AI and fintech, Grid Dynamics appears well-positioned for future success.