Looking back on it services & other tech stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Applied Digital (NASDAQ: APLD) 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 6.9% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.

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. This print exceeded analysts’ expectations by 67.3%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and revenue estimates.

“We now operate one of the only 100 MW direct-to-chip liquid-cooled data centers online today, and more importantly, it is fully operational. We believe that's what matters to our customers – turning power into live AI capacity, delivered on time and performing as expected. We are also starting to see the earnings power of our platform come through, with a full quarter of revenue from our first building now recognized. That initial 100 MW represents approximately one-sixth of our contracted capacity and one-tenth of what is operating or under construction, but we believe it begins to show what's possible from here as we continue to bring additional capacity online in the coming quarters,” said Wes Cummins, Chairman and Chief Executive Officer.

Applied Digital scored the biggest analyst estimate beat of the whole group. Unsurprisingly, the stock is up 39.4% since reporting and currently trades at $38.73.

Read why we think that Applied Digital is one of the best it services & other tech stocks, our full report is free.

Dell (NYSE: DELL)

Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.

Dell reported revenues of $43.84 billion, up 87.5% year on year, outperforming analysts’ expectations by 21.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 22.3% since reporting. It currently trades at $387.72.

Is now the time to buy Dell? 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.

As expected, the stock is down 49.2% since the results and currently trades at $20.55.

Read our full analysis of Everforth’s results here.

HP (NYSE: HPQ)

Born from the legendary Silicon Valley garage startup founded by Bill Hewlett and Dave Packard in 1939, HP (NYSE: HPQ) designs and sells personal computers, printers, and related technology products and services to consumers, businesses, and enterprises worldwide.

HP reported revenues of $14.41 billion, up 9% year on year. This print topped analysts’ expectations by 3.6%. It was a stunning quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

The stock is flat since reporting and currently trades at $25.28.

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

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 result was in line with analysts’ expectations. Aside from that, it was a softer quarter as it produced a significant miss of analysts’ full-year EPS guidance estimates.

The stock is down 25.1% since reporting and currently trades at $9.

Read our full, actionable report on DXC 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 Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.