Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at EPAM (NYSE: EPAM) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 0.9% while next quarter’s revenue guidance was in line.
Luckily, it services & consulting stocks have performed well with share prices up 10.4% on average since the latest earnings results.
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 $1.41 billion, up 4.5% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.
"Our second quarter results came in better than expected with continued AI-native momentum and ongoing profitability improvement, reflecting solid execution against our multi-year strategy," said Balazs Fejes, CEO & President, EPAM.
EPAM delivered the weakest guidance update in the group. The market seems disappointed with the results as the stock is down 1.6% since reporting and currently trades at $108.15.
Is now the time to buy EPAM? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $1.68 billion, flat year on year, outperforming analysts’ expectations by 1.8%. The business had an exceptional quarter with a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 27.1% since reporting. It currently trades at $192.64.
Is now the time to buy Gartner? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $17.16 billion, up 1.1% year on year, falling short of analysts’ expectations by 1.5%. It was a slower quarter as it posted EPS in line with analysts’ estimates.
IBM delivered the weakest performance against analyst estimates among its peers. Interestingly, the stock is up 8.1% since the results and currently trades at $222.47.
Read our full analysis of IBM’s results here.
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 $1.01 billion, down 1.3% year on year. This print topped analysts’ expectations by 1.6%. It was an exceptional quarter as it also produced a solid beat of analysts’ EPS guidance for next quarter estimates and a beat of analysts’ EPS estimates.
Everforth pulled off the highest guidance raise of the whole group. The stock is up 46.3% since reporting and currently trades at $34.24.
Read our full, actionable report on Everforth here, it’s free.
Kyndryl (NYSE: KD)
Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.
Kyndryl reported revenues of $3.62 billion, down 3.3% year on year. This result came in 0.7% below analysts’ expectations. In spite of that, it was a very strong quarter as it produced a beat of analysts’ EPS estimates.
The stock is down 21.4% since reporting and currently trades at $11.55.
Read our full, actionable report on Kyndryl here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
