Dj Cfo Doradla Surrenders 765 Of Grid Dynamics Holdings Inc >Gdyn

What Happened?

A number of stocks traded in opposite directions in the afternoon session after geopolitical tensions between the United States and the European Union escalated, sparking fears of a renewed trade war. 

The broader markets adopted a "risk-off" mode, with investors seeking safe-haven assets amidst the uncertainty. The market's primary fear gauge, the VIX, jumped to a fresh eight-week high, signaling rising investor anxiety. The dispute, centered on Greenland, raised the possibility of a revived trade conflict, which could disrupt global supply chains and economic activity. Mega-cap technology stocks, many of which have significant international sales and operations, were particularly affected by the souring risk sentiment as a potential trade war threatens their global business models.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• IT Services & Consulting company Grid Dynamics fell 1.9%. Is now the time to buy Grid Dynamics? Access our full analysis report here, it’s free.
• Specialized Technology company Mirion fell 0.4%. Is now the time to buy Mirion? Access our full analysis report here, it’s free.
• Data & Business Process Services company Planet Labs fell 0.1%. Is now the time to buy Planet Labs? Access our full analysis report here, it’s free.
• Hardware & Infrastructure company IonQ jumped 5.7%. Is now the time to buy IonQ? Access our full analysis report here, it’s free.
• Terrestrial Telecommunication Services company Lumen fell 5.1%. Is now the time to buy Lumen? Access our full analysis report here, it’s free.

Zooming In On IonQ (IONQ)

IonQ’s shares are extremely volatile and have had 87 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 29 days ago when the stock gained 12.2% on the news that several Wall Street firms initiated coverage on the company with positive ratings. 

Notably, Jefferies started its coverage with a "Buy" rating and set a price target of $100, highlighting the company's technological edge. This suggested significant potential upside. Adding to the bullish sentiment, analysts at Wedbush and Mizuho also began covering the stock with "Outperform" ratings. They set ambitious price targets of $60 and $90, respectively. This wave of positive assessments from multiple financial analysts, all pointing to IonQ's advanced quantum computing capabilities, appeared to fuel strong investor optimism.

IonQ is up 12.6% since the beginning of the year, but at $52.65 per share, it is still trading 35.9% below its 52-week high of $82.09 from October 2025. Investors who bought $1,000 worth of IonQ’s shares 5 years ago would now be looking at an investment worth $4,651.

Looking back on it services & consulting stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Grid Dynamics 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.

Grid Dynamics

With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics 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.

Best Q3: IBM

With a corporate history spanning over a century and once known for its iconic mainframe computers, 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.

Kyndryl

Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl 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.

EPAM

Founded in 1993 during the early days of offshore software development, EPAM Systems 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.

Gartner

With over 2,500 research experts guiding organizations through complex technology landscapes, Gartner 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.

Let’s dig into the relative performance of Amdocs and its peers as we unravel the now-completed Q3 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 Q3. As a group, revenues beat analysts’ consensus estimates by 2.7% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Amdocs

Powering the digital experiences of approximately 400 communications companies worldwide, Amdocs provides software and services that help telecommunications and media companies manage customer relationships, monetize services, and automate network operations.

Amdocs reported revenues of $1.15 billion, down 9% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ backlog estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.

"Fiscal 2025 was another important year as we delivered financial results consistent with our expectations while serving our global telecommunications customers with cutting-edge cloud, digital and AI-driven solutions designed to meet their strategic imperatives. Cloud-related activities delivered double-digit growth, reaching over 30% of total revenue, and we achieved significantly better profitability while maintaining our commitment to R&D. The year finished with very strong sales momentum. We secured Google Cloud migration awards at TELUS in Canada and Lumen Technologies in US and signed a digital transformation and IT operations agreement with Fidium, a new fiber customer in the US. Our international footprint expanded with modernization awards at British Telecom, or BT-EE in the UK, Altice SFR in France, Telia in Finland, PLDT in Philippines and Claro Brazil. Additionally, Telefónica Germany chose Amdocs to implement new GenAI use cases using the amAIz Sales Agent. This latest win extends our momentum following recent GenAI-related deals with Altice Optimum, e& UAE, and Consumer Cellular, and further demonstrates Amdocs' pivotal role in accelerating generative AI adoption in the telecom industry," said Shuky Sheffer, president and chief executive officer of Amdocs Management Limited.

Unsurprisingly, the stock is down 5.5% since reporting and currently trades at $79.38.

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

Best Q3: Applied Digital

Pivoting from its origins in cryptocurrency mining to become a key player in the AI infrastructure boom, Applied Digital designs and operates specialized data centers that provide high-performance computing infrastructure for artificial intelligence and blockchain applications.

Applied Digital reported revenues of $64.22 million, up 84.3% year on year, outperforming analysts’ expectations by 17.6%. 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 10.7% since reporting. It currently trades at $26.27.

Grid Dynamics

With engineering centers across the Americas, Europe, and India serving Fortune 1000 companies, Grid Dynamics 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 21.2% since the results and currently trades at $9.21.

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

Diebold Nixdorf

With roots dating back to 1859 and a presence in over 100 countries, Diebold Nixdorf provides automated self-service technology, software, and services that help banks and retailers digitize their customer transactions.

Diebold Nixdorf reported revenues of $945.2 million, up 2% year on year. This result surpassed analysts’ expectations by 0.8%. It was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and a narrow beat of analysts’ revenue estimates.

The stock is up 21.4% since reporting and currently trades at $68.29.

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

Hewlett Packard Enterprise

Born from the 2015 split of the iconic Silicon Valley pioneer Hewlett-Packard, Hewlett Packard Enterprise provides edge-to-cloud technology solutions that help businesses capture, analyze, and act upon their data across hybrid IT environments.

Hewlett Packard Enterprise reported revenues of $9.68 billion, up 14.4% year on year. This print came in 2% below analysts' expectations. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ ARR estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

The stock is up 7.1% since reporting and currently trades at $24.69.

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