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Q3 Earnings Highlights: Gartner (NYSE:IT) Vs The Rest Of The IT Services & Consulting Stocks

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The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how it services & consulting stocks fared in Q3, starting with Gartner (NYSE: IT).

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 mixed Q3. As a group, revenues along with next quarter’s revenue guidance were in line with analysts’ consensus estimates.

Thankfully, share prices of the companies have been resilient as they are up 6.6% on average since the latest earnings results.

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 $1.52 billion, up 2.7% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with a beat of analysts’ EPS estimates and revenue in line with analysts’ estimates.

Gene Hall, Gartner’s Chairman and Chief Executive Officer, commented, “Third quarter financial results were ahead of expectations. Contract value grew 3%, or 6% excluding the US Federal business. We increased our Adjusted EBITDA and margin guidance for the year and continue to expect CV to accelerate in 2026. Seeing extraordinary value and a unique opportunity, we repurchased more than $1 billion of stock, a Gartner record for a single quarter.”

Gartner Total Revenue

Unsurprisingly, the stock is down 2.6% since reporting and currently trades at $239.48.

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

Best Q3: 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 $16.33 billion, up 9.1% year on year, outperforming analysts’ expectations by 1.4%. The business had a very strong quarter with an impressive beat of analysts’ operating income estimates and a beat of analysts’ EPS estimates.

IBM Total Revenue

IBM pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 2.7% since reporting. It currently trades at $295.16.

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

Grid Dynamics (NASDAQ: GDYN)

With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics (NASDAQ: GDYN) provides technology consulting, engineering, and analytics services to help large enterprises modernize their technology systems and business processes.

Grid Dynamics reported revenues of $104.2 million, up 19.1% year on year, in line with analysts’ expectations. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.

Interestingly, the stock is up 23.2% since the results and currently trades at $9.37.

Read our full analysis of Grid Dynamics’s results here.

ASGN (NYSE: ASGN)

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

ASGN reported revenues of $1.01 billion, down 1.9% year on year. This number surpassed analysts’ expectations by 0.7%. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a slight miss of analysts’ EPS guidance for next quarter estimates.

The stock is down 1.1% since reporting and currently trades at $47.82.

Read our full, actionable report on ASGN here, it’s free for active Edge members.

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 $3.16 billion, down 2.5% year on year. This result met analysts’ expectations. Taking a step back, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.

DXC delivered the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 8.2% since reporting and currently trades at $14.01.

Read our full, actionable report on DXC here, it’s free for active Edge members.


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