Wrapping up Q1 earnings, we look at the numbers and key takeaways for the it services & consulting stocks, including Gartner (NYSE: IT) and its peers.

IT Services & Consulting companies stand to benefit from increasing enterprise demand for digital transformation, AI-driven automation, and cybersecurity resilience. Many enterprises can't attack these topics alone and need IT services and consulting on everything from technical advice to implementation. Challenges in meeting these needs will include finding talent in specialized and evolving IT fields. While AI and automation can enhance productivity, they also threaten to commoditize certain consulting functions. Another ongoing challenge will be pricing pressures from offshore IT service providers, which have lower labor costs and increasingly equal access to advanced technology like AI.

The 8 it services & consulting stocks we track reported a slower Q1. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 2.3% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22% since the latest earnings results.

Best Q1: Gartner (NYSE: IT)

With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner (NYSE: IT) provides research, advisory services, and conferences that help executives make better decisions about technology and other business priorities.

Gartner reported revenues of $1.51 billion, down 1.5% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates.

Gene Hall, Gartner’s Chairman and Chief Executive Officer, commented, “Contract Value accelerated in the quarter. Insights revenue, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow were ahead of expectations. We repurchased $535 million of stock in the quarter, as our capital allocation continues to create value for our shareholders. In addition, we increased our full year Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow guidance.”

Gartner delivered the slowest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 12.5% since reporting and currently trades at $129.18.

Is now the time to buy Gartner? Access our full analysis of the earnings results here, it’s free.

IBM (NYSE: IBM)

With a corporate history spanning over a century and once known for its iconic mainframe computers, IBM (NYSE: IBM) provides hybrid cloud computing platforms, AI solutions, consulting services, and enterprise infrastructure to help businesses modernize their operations.

IBM reported revenues of $15.92 billion, up 9.5% year on year, outperforming analysts’ expectations by 1.3%. The business had a strong quarter with a beat of analysts’ EPS estimates.

IBM scored the biggest analyst estimate beat and fastest revenue growth among its peers. The market seems content with the results as the stock is up 4.9% since reporting. It currently trades at $264.17.

Is now the time to buy IBM? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Everforth (NYSE: EFOR)

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, Everforth (EFOR) provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

Everforth reported revenues of $968.3 million, flat year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations.

Everforth delivered the weakest performance against analyst estimates and weakest guidance update in the group. As expected, the stock is down 56.3% since the results and currently trades at $17.68.

Read our full analysis of Everforth’s results here.

DXC (NYSE: DXC)

Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology (NYSE: DXC) is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.

DXC reported revenues of $3.13 billion, down 1.2% year on year. This print met analysts’ expectations. Aside from that, it was a softer quarter with EPS guidance for next quarter missing analysts' estimates and a miss of analysts’ organic revenue estimates.

DXC had the weakest full-year guidance update among its peers. The stock is down 30.1% since reporting and currently trades at $8.39.

Read our full, actionable report on DXC here, it’s free.

EPAM (NYSE: EPAM)

Founded in 1993 during the early days of offshore software development, EPAM Systems (NYSE: EPAM) provides digital engineering, cloud, and AI transformation services to help global enterprises and startups modernize their technology systems and create digital products.

EPAM reported revenues of $1.4 billion, up 7.6% year on year. This number was in line with analysts’ expectations. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts’ full-year EPS guidance estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

The stock is down 28% since reporting and currently trades at $76.99.

Read our full, actionable report on EPAM here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.