Grid Dynamics Posts Record Q3 2026 Revenue of $114.3 Million With AI at 31% of Sales

Grid Dynamics Holdings reported record third quarter 2026 revenue of $114.3 million, beating the top of its guidance range of $112.0 million to $114.0 million and rising 9.7% from the same period a year earlier. AI-related revenue reached a record 31% of total revenue and has grown more than 45% year-over-year for three consecutive quarters.

The Technology, Media and Telecom vertical was the primary growth engine, accounting for 32.3% of quarterly revenue and rising 29.3% year-over-year and 7.6% sequentially on stronger demand from the company's largest technology clients as well as new customers. Retail was the second-largest vertical at 27.2% of revenue, up 13.3% year-over-year and 8.5% sequentially driven by specialty retailers, while Finance contributed 22.5% of revenue with 3.9% sequential growth.

Profitability improved sharply across the board. Gross margin reached 40.3%, a gain of 700 basis points compared to 33.3% in the prior-year quarter. Non-GAAP EBITDA came in at $22.9 million, a 20% EBITDA margin, up from $12.7 million a year earlier. CEO Leonard Livschitz noted the company exceeded its 300-basis-point margin commitment a quarter ahead of schedule. GAAP net income was $6.2 million, or $0.08 per diluted share, compared with $1.2 million, or $0.01 per diluted share, in the third quarter of 2025. Diluted non-GAAP earnings per share doubled to $0.18 from $0.09 a year ago. Options implied volatility on GDYN shares was also noted as elevated around the time of the report.