Let’s dig into the relative performance of Cisco (NASDAQ:CSCO) and its peers as we unravel the now-completed Q4 it services & other tech earnings season.
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 Q4. As a group, revenues beat analysts’ consensus estimates by 5.3% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.4% since the latest earnings results.
Founded in 1984 by a husband and wife team who wanted computers at Stanford to talk to computers at UC Berkeley, Cisco (NASDAQ:CSCO) designs and sells networking equipment, security solutions, and collaboration tools that help businesses connect their systems and secure their digital operations.
Cisco reported revenues of $15.35 billion, up 9.7% year on year. This print exceeded analysts’ expectations by 1.5%. Overall, it was a strong quarter for the company with revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ revenue estimates.
“Cisco’s strong second quarter and first half of fiscal 2026 demonstrate both the power of our portfolio and the fundamental role we continue to play in connecting and protecting customers in a rapidly evolving landscape,” said Chuck Robbins, chair and CEO of Cisco.
Unsurprisingly, the stock is down 7.6% since reporting and currently trades at $79.08.
Is now the time to buy Cisco? Access our full analysis of the earnings results here, it’s free.
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 98.2% year on year, outperforming analysts’ expectations by 14.8%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 16.7% since reporting. It currently trades at $24.62.
Is now the time to buy Applied Digital? Access our full analysis of the earnings results here, it’s free.
Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ:XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.
Xerox reported revenues of $2.03 billion, up 25.7% year on year, falling short of analysts’ expectations by 0.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 45.9% since the results and currently trades at $1.26.
Read our full analysis of Xerox’s results here.
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 $14.44 billion, up 6.9% year on year. This result topped analysts’ expectations by 3.5%. More broadly, it was a satisfactory quarter as it also recorded a solid beat of analysts’ revenue estimates but a slight miss of analysts’ EPS guidance for next quarter estimates.
The stock is up 6.9% since reporting and currently trades at $19.46.
Read our full, actionable report on HP here, it’s free.
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 $980.1 million, flat year on year. This print beat analysts’ expectations by 0.6%. Taking a step back, it was a mixed quarter as it also logged a decent beat of analysts’ EPS guidance for next quarter estimates but a significant miss of analysts’ EPS estimates.
The stock is down 26.7% since reporting and currently trades at $39.05.
Read our full, actionable report on ASGN here, it’s free.
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.
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