EPAM Systems’ EPAM third-quarter 2019 non-GAAP earnings per share improved 18.8% year over year to $1.39 and also beat the Zacks Consensus Estimate by 3.7%.Additionally, revenues in the reported quarter came in at $588.1 million, reflecting a year-over-year rise of 25.6%. The top line also surpassed the Zacks Consensus Estimate of $580 million. On constant currency (cc) basis, revenues were up 27.2%. During the quarter, inorganic contribution to revenue growth was approximately 1.5%.The company is benefiting from growth across all industry verticals and geographies. Digital transformation, focus on customer engagement and product development are key catalysts.Top-Line DetailsRevenue Break Up by VerticalsEPAM Systems’ largest vertical Financial Services (representing 22.1% of total revenues) exhibited 24.4% growth on a year-over-year basis to $130.3 million. Growing demand for asset management, insurance and payment processing offerings is a key catalyst.Travel & Consumer (19.1%) improved 11.2% to $112.4 million. An uptick in demand for replatforming, e-commerce, retail and data engineering services aided performance. However, ongoing slowdown within certain consumer clients limited growth.Software & Hi-Tech (18.4%) was up nearly 22.9% to $108.4 million on strong adoption of product engineering services.Business Information & Media (18%) rose 29.3% to $105.8 million on robust traction witnessed by data and analytics services.Life Science & Healthcare (11.4%) surged 49.7% to 66.8 million, backed by improving demand for R&D IT services and other applications.Emerging Verticals (11%) improved 35.1% to $64.4 million, driven primarily by clients in energy and telecommunications sectors. EPAM Systems, Inc. Price, Consensus and EPS Surprise EPAM Systems, Inc. price-consensus-eps-surprise-chart | EPAM Systems, Inc. QuoteRevenue Break Up by GeographyGeographically, EPAM Systems generated 60.9% of total revenues from North America, up 26.2% year over year (26.5% at cc) to $358.4 million.Revenues from Europe, contributing 32.2% to total revenues, were up 24.4% (28.4% at cc) to $189.3 million.CIS or Commonwealth of Independent States, representing 4.5% of revenues, jumped 43% (42.9% at cc), to $26.5 million.APAC rose 4.1% (5.5% at cc), accounting for 2.4% of revenues, to $13.9 million.Revenue Break Up by Customer ConcentrationThe company’s top 20 clients, contributing 40.8% to total revenues, climbed 17% year over year in the quarter under review while the rest (representing 59.2% of total revenues) improved 32%.MarginsEPAM Systems’ non-GAAP gross margin contracted 20 bps to 37.1%.The company’s non-GAAP operating income improved 21.6% year over year to $99.7 million while the operating margin contracted 50 bps to 17%.Balance Sheet and Cash FlowEPAM Systems exited the third quarter with cash and cash equivalents of $853.2 million, up from $777.4 million at the end of the second quarter.As of Sep 30, 2019, long-term debt came in at $25 million, flat when compared with the second quarter.Cash generated from operating activities was $119 million in the quarter compared with $44 million reported in the previous quarter.Free cash flow came in at $91.8 million, compared with $32.4 million in the second quarter.GuidanceFor 2019, EPAM Systems expects revenue growth to be at least 23% year over year. At cc, the metric is expected to be 24%. The company anticipates foreign currency fluctuations to have an adverse impact of 1% on revenues.Non-GAAP operating margin is now projected in the band of 16.5-17.5%, compared with the earlier predicted range of 16-17%. The company now anticipates non-GAAP earnings to be $5.35, up from $5.25 predicted earlier, reflecting anticipated improvement in profitability.For the fourth quarter, the company forecasts revenues at minimum $616 million, up 22% (as reported and at cc) year over year.Non-GAAP earnings per share are expected to be at least at $1.43. Meanwhile non-GAAP operating margin is predicted between 16.5% and 17.5%.Zacks Rank and Other Stocks to ConsiderEPAM Systems currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader technology sector worth considering are Alteryx, Inc. AYX, Instructure, Inc. INST and Fortinet, Inc. FTNT. All the three stocks flaunt a Zacks Rank #1 (Strong buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Long-term earnings growth rate for Alteryx, Instructure and Fortinet is currently pegged at 39.85%, 30% and 14%, respectively.Today's Best Stocks from ZacksWould you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.See their latest picks free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fortinet, Inc. (FTNT): Free Stock Analysis Report Instructure, Inc. (INST): Free Stock Analysis Report EPAM Systems, Inc. (EPAM): Free Stock Analysis Report Alteryx, Inc. 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