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Looking back on it services & consulting stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Grid Dynamics (NASDAQ:GDYN) 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 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 9.9% on average since the latest earnings results.
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. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with revenue guidance for next quarter missing analysts’ expectations and EPS in line with analysts’ estimates.
Interestingly, the stock is up 20.7% since reporting and currently trades at $9.17.
Is now the time to buy Grid Dynamics? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 and EPS estimates.
IBM scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.4% since reporting. It currently trades at $305.88.
Is now the time to buy IBM? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $3.72 billion, down 1.4% year on year, falling short of analysts’ expectations by 2.9%. It was a slower quarter as it posted a significant miss of analysts’ revenue estimates.
Kyndryl delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 1.1% since the results and currently trades at $27.12.
Read our full analysis of Kyndryl’s results here.
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 $1.39 billion, up 19.4% year on year. This number surpassed analysts’ expectations by 1.4%. It was a strong quarter as it also recorded an impressive beat of analysts’ EPS guidance for next quarter estimates and a solid beat of analysts’ full-year EPS guidance estimates.
EPAM delivered the fastest revenue growth but had the weakest full-year guidance update among its peers. The stock is up 31.6% since reporting and currently trades at $211.68.
Read our full, actionable report on EPAM here, it’s free for active Edge members.
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 met analysts’ expectations. Overall, it was a strong quarter as it also put up a beat of analysts’ EPS estimates and revenue in line with analysts’ estimates.
The stock is up 3.2% since reporting and currently trades at $253.68.
Read our full, actionable report on Gartner here, it’s free for active Edge members.
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.
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