Wrapping up Q1 earnings, we look at the numbers and key takeaways for the it services & other tech stocks, including Cisco (NASDAQ: CSCO) and its peers.

The IT and tech services subsector is poised for growth as businesses accelerate cloud adoption, AI-driven network automation, and edge computing deployments. While these seem like big, nebulous trends, they require very real products like switches and firewalls as well as implementation services. On the other hand, challenges on the horizon include intensifying competition from cloud-native networking providers, regulatory scrutiny over data privacy and cybersecurity, and potential supply chain constraints for networking hardware. While AI and automation will enhance network efficiency and security, they also introduce risks related to algorithmic bias, compliance complexity, and increased energy consumption.

The 20 it services & other tech stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 6.8% while next quarter’s revenue guidance was 5.6% above.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Cisco (NASDAQ: CSCO)

Founded in 1984 by a husband and wife team who wanted computers at Stanford to talk to computers at UC Berkeley, Cisco (NASDAQ: CSCO) designs and sells networking equipment, security solutions, and collaboration tools that help businesses connect their systems and secure their digital operations.

Cisco reported revenues of $15.84 billion, up 12% year on year. This print exceeded analysts’ expectations by 1.9%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS guidance for next quarter estimates and revenue guidance for next quarter exceeding analysts’ expectations.

Interestingly, the stock is up 17.4% since reporting and currently trades at $119.58.

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

Best Q1: Applied Digital (NASDAQ: APLD)

Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital (NASDAQ: APLD) designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.

Applied Digital reported revenues of $126.6 million, up 139% year on year, outperforming analysts’ expectations by 67.3%. The business had an incredible quarter with a beat of analysts’ EPS estimates.

Applied Digital pulled off the biggest analyst estimate beat among its peers. The market seems happy with the results as the stock is up 47.3% since reporting. It currently trades at $40.94.

Is now the time to buy Applied Digital? 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 and a significant miss of analysts’ EPS guidance for next quarter estimates.

Everforth delivered the weakest guidance update in the group. As expected, the stock is down 57.8% since the results and currently trades at $17.06.

Read our full analysis of Everforth’s results here.

IonQ (NYSE: IONQ)

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

IonQ reported revenues of $64.67 million, up 755% year on year. This print surpassed analysts’ expectations by 30%. It was a very strong quarter as it also produced revenue guidance for next quarter exceeding analysts’ expectations.

IonQ delivered the fastest revenue growth among its peers. The stock is down 4.1% since reporting and currently trades at $50.41.

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

NetApp (NASDAQ: NTAP)

Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.

NetApp reported revenues of $1.95 billion, up 12.5% year on year. This result beat analysts’ expectations by 4.1%. Overall, it was a stunning quarter as it also put up an impressive beat of analysts’ billings estimates and a solid beat of analysts’ EPS guidance for next quarter estimates.

The stock is up 8.8% since reporting and currently trades at $154.88.

Read our full, actionable report on NetApp 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 Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.