IT services & consulting stocks Q3 in review: DXC vs peers
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the it services & consulting stocks, including DXC NYSE:DXC 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 solid Q3. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 20.1% below.
Luckily, it services & consulting stocks have performed well with share prices up 12.4% on average since the latest earnings results.
Weakest Q3: 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 $3.03 billion, down 4% year on year. This print exceeded analysts’ expectations by 1.3%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS guidance for next quarter estimates and full-year revenue guidance missing analysts’ expectations.
"On the quarter, we delivered revenue, adjusted EBIT, and Non-GAAP diluted EPS above our expectations, while making progress with the agentic and AI-based solutions that we expect will contribute to future growth. The revenue ramp for agentic solutions is more clear in terms of average deal size, close cycle timing, and pace of follow-on work," said Raul Fernandez, CEO of DXC Technology. "While our core revenue recovery will take time, I am confident that our role operating mission-critical systems gives DXC a differentiated position as enterprises look to deploy AI at scale."
DXC delivered the weakest guidance update and slowest revenue growth of the whole group. The market seems disappointed with the results as the stock is down 2.1% since reporting and currently trades at $14.91.
Read our full report on DXC here, it’s free.
Best Q3: 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 $1.50 billion, down 1.3% year on year, outperforming analysts’ expectations by 1.2%. The business had a very strong quarter with a beat of analysts’ EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 18.8% since reporting. It currently trades at $190.96.
Is now the time to buy Gartner? Access our full analysis of the earnings results 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 $1.43 billion, up 2.3% year on year, exceeding analysts’ expectations by 0.5%. Still, it was a mixed quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.
Interestingly, the stock is up 19% since the results and currently trades at $163.49.
Read our full analysis of EPAM’s results here.
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 $114.3 million, up 9.7% year on year. This result beat analysts’ expectations by 1.4%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and revenue guidance for next quarter beating analysts’ expectations.
Grid Dynamics scored the highest guidance raise and fastest revenue growth among its peers. The stock is up 41.8% since reporting and currently trades at $13.46.
Read our full, actionable report on Grid Dynamics here, it’s free.
Accenture (NYSE:ACN)
With a workforce of approximately 774,000 people serving clients in more than 120 countries, Accenture (NYSE:ACN) is a professional services firm that helps organizations transform their businesses through consulting, technology, operations, and digital services.
Accenture reported revenues of $18.68 billion, up 6.2% year on year. This number topped analysts’ expectations by 3.5%. Zooming out, it was a satisfactory quarter as it also recorded a beat of analysts’ EPS estimates but revenue guidance for next quarter slightly missing analysts’ expectations.
Accenture pulled off the biggest analyst estimate beat in the group. The stock is up 37.4% since reporting and currently trades at $251.98.
Read our full, actionable report on Accenture 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 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.