Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Applied Digital (NASDAQ: APLD) and its peers.
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 very strong Q2. As a group, revenues beat analysts’ consensus estimates by 10.1% while next quarter’s revenue guidance was 7.1% above.
Thankfully, share prices of the companies have been resilient as they are up 8.8% on average since the latest earnings results.
Applied Digital (NASDAQ: APLD)
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 $258.7 million, up 407% year on year. This print exceeded analysts’ expectations by 148%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates.
“Nearly three years ago, we made a deliberate decision to build a company that scales, not just a company that builds data centers,” said Wes Cummins, Chairman and Chief Executive Officer of Applied Digital.
Applied Digital scored the biggest analyst estimate beat and fastest revenue growth among its peers. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 6.5% since reporting and currently trades at $24.65.
NetApp (NASDAQ: NTAP)
Founded in 1992 as a pioneer in networked storage technology, NetApp (NASDAQ: NTAP) provides data storage and management solutions that help organizations store, protect, and optimize their data across on-premises data centers and public clouds.
NetApp reported revenues of $2.03 billion, up 29.9% year on year, outperforming analysts’ expectations by 10.2%. The business had an incredible quarter with an impressive beat of analysts’ billings and EPS estimates.
The market seems happy with the results as the stock is up 16.6% since reporting. It currently trades at $210.83.
Is now the time to buy NetApp? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $18.72 billion, up 5.6% year on year, in line with analysts’ expectations. It was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations.
Accenture delivered the weakest guidance update in the group. Interestingly, the stock is up 18.2% since the results and currently trades at $184.48.
Read our full analysis of Accenture’s results here.
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 beat analysts’ expectations by 0.6%. Zooming out, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is down 1.2% since reporting and currently trades at $108.60.
Read our full, actionable report on EPAM here, it’s free.
Amdocs (NASDAQ: DOX)
Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs (NASDAQ: DOX) provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations.
Amdocs reported revenues of $1.17 billion, up 2.7% year on year. This number was in line with analysts’ expectations. However, it was a mixed quarter as it logged EPS in line with analysts’ estimates.
The stock is up 3.4% since reporting and currently trades at $57.18.
Read our full, actionable report on Amdocs 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 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
