Reflecting On IT Services & Consulting Stocks’ Q3 Earnings: EPAM (NYSE:EPAM)

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

In light of this news, share prices of the companies have held steady as they are up 3.1% on average since the latest earnings results.

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 print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS guidance for next quarter estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

"We are pleased to deliver another quarter of improving year-over-year organic constant currency revenue growth, driven by our deep engineering expertise and focus on helping clients build out their AI foundation and transform themselves into AI-Native organizations," said Balazs Fejes, CEO and President at EPAM.

EPAM scored the fastest revenue growth but had the weakest full-year guidance update of the whole group. Unsurprisingly, the stock is up 15.4% since reporting and currently trades at $185.75.

We think EPAM is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

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 a solid beat of analysts’ operating income estimates and a beat of analysts’ EPS estimates.

IBM scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6.1% since reporting. It currently trades at $304.99.

Is now the time to buy IBM? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: 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 16.3% since the results and currently trades at $8.84.

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

DXC

Born from the 2017 merger of Computer Sciences Corporation and HP Enterprise's services business, DXC Technology is a global IT services company that helps businesses transform their technology infrastructure, applications, and operations.

DXC reported revenues of $3.16 billion, down 2.5% year on year. This result was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it also logged a beat of analysts’ EPS estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.

DXC achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is up 1.2% since reporting and currently trades at $13.10.

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

ASGN

Evolving from its roots in IT staffing to become a high-end technology consulting powerhouse, ASGN provides specialized IT consulting services and staffing solutions to Fortune 1000 companies and U.S. federal government agencies.

ASGN reported revenues of $1.01 billion, down 1.9% year on year. This print beat analysts’ expectations by 0.7%. Taking a step back, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ EPS guidance for next quarter estimates.

The stock is down 5.7% since reporting and currently trades at $45.59.

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

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Press Release: Gartner Marketing Survey Finds 56% Of Consumers Are Already Spending Like It's A Recession

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ASGN and CECO Environmental Shares Skyrocket, What You Need To Know

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What Happened?

A number of stocks jumped in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday.

The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.

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 ASGN jumped 3.1%. Is now the time to buy ASGN? Access our full analysis report here, it’s free for active Edge members.
Industrial & Environmental Services company CECO Environmental jumped 3%. Is now the time to buy CECO Environmental? Access our full analysis report here, it’s free for active Edge members.

Zooming In On ASGN (ASGN)

ASGN’s shares are somewhat volatile and have had 10 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 3 days ago when the stock gained 8.6% on the news that the company announced plans to rebrand as Everforth and authorized a new $1 billion share repurchase program. The information technology services provider revealed it would unify its six brands under the new parent identity. Alongside this change, ASGN's Board of Directors approved the share buyback, which the company described as the largest in its history. Share repurchase programs can be viewed positively by investors as they reduce the number of outstanding shares, potentially increasing the value of the remaining ones. These announcements were made during the company's 2025 Investor Day, where the executive team also presented its strategy and three-year financial targets.

ASGN is down 46.6% since the beginning of the year, and at $44.23 per share, it is trading 52.9% below its 52-week high of $93.96 from January 2025. Investors who bought $1,000 worth of ASGN’s shares 5 years ago would now be looking at an investment worth $538.48.

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Why IBM (IBM) Stock Is Up Today

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IBM Corp.

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What Happened?

Shares of technology and consulting giant IBM jumped 2.8% in the afternoon session after renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday.

The shares closed the day at $304.16, up 2.3% from previous close.

Is now the time to buy IBM? Access our full analysis report here.

What Is The Market Telling Us

IBM’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock gained 2.8% on the news that comments from a key Federal Reserve official hinted at a potential interest rate cut in December. John Williams, president of the Federal Reserve Bank of New York, signaled he was open to lowering the fed funds rate—the key interest rate that banks charge each other for overnight loans—to support the job market. Speaking at an event, Williams stated that he sees “room for a further adjustment” for interest rates, which immediately shifted market expectations. Following his remarks, the perceived likelihood of an interest rate cut at the Federal Reserve's December meeting flipped from unlikely to more likely than not. The prospect of lower borrowing costs sent a wave of optimism through the markets, leading to a rally in major indices like the S&P 500, Dow Jones Industrial Average, and the Nasdaq Composite.

IBM is up 39.1% since the beginning of the year, and at $306 per share, it is trading close to its 52-week high of $314.98 from November 2025. Investors who bought $1,000 worth of IBM’s shares 5 years ago would now be looking at an investment worth $2,459.

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U.S. stocks higher at close of trade; Dow Jones Industrial Average up 0.44%

Investing.com

Investing.com – U.S. stocks were higher after the close on Monday, as gains in the Technology, Consumer Goods and Utilities sectors led shares higher.

At the close in NYSE, the Dow Jones Industrial Average rose 0.44%, while the S&P 500 index climbed 1.55%, and the NASDAQ Composite index climbed 2.69%.

The best performers of the session on the Dow Jones Industrial Average were Merck & Company Inc (NYSE:MRK), which rose 2.70% or 2.64 points to trade at 100.40 at the close. Meanwhile, Amazon.com Inc (NASDAQ:AMZN) added 2.44% or 5.38 points to end at 226.07 and International Business Machines (NYSE:IBM) was up 2.25% or 6.70 points to 304.14 in late trade.

The worst performers of the session were Procter & Gamble Company (NYSE:PG), which fell 2.61% or 3.94 points to trade at 146.98 at the close. Verizon Communications Inc (NYSE:VZ) declined 2.47% or 1.02 points to end at 40.21 and Walt Disney Company (NYSE:DIS) was down 2.25% or 2.35 points to 101.94.

The top performers on the S&P 500 were Broadcom Inc (NASDAQ:AVGO) which rose 11.10% to 377.96, Western Digital Corporation (NASDAQ:WDC) which was up 8.43% to settle at 150.93 and Micron Technology Inc (NASDAQ:MU) which gained 7.99% to close at 223.93.

The worst performers were Carnival Corporation (NYSE:CCL) which was down 6.78% to 24.76 in late trade, Paramount Skydance Corp (NASDAQ:PSKY) which lost 5.22% to settle at 15.06 and Copart Inc (NASDAQ:CPRT) which was down 4.47% to 38.91 at the close.

The top performers on the NASDAQ Composite were Meihua International Medical Technologies Co Ltd (NASDAQ:MHUA) which rose 8,103.58% to 11.93, Antelope Enterprise Holdings Ltd (NASDAQ:AEHL) which was up 108.26% to settle at 2.52 and Pasithea Therapeutics Corp (NASDAQ:KTTA) which gained 48.53% to close at 0.43.

The worst performers were Clearside Biomedical Inc (NASDAQ:CLSD) which was down 66.92% to 0.90 in late trade, Twin Hospitality Group Inc (NASDAQ:TWNP) which lost 39.44% to settle at 2.15 and Mobilehealth Network Solutions (NASDAQ:MNDR) which was down 38.53% to 2.92 at the close.

Rising stocks outnumbered declining ones on the New York Stock Exchange by 1721 to 1034 and 82 ended unchanged; on the Nasdaq Stock Exchange, 2194 rose and 1181 declined, while 153 ended unchanged.

Shares in Copart Inc (NASDAQ:CPRT) fell to 52-week lows; falling 4.47% or 1.82 to 38.91. Shares in Meihua International Medical Technologies Co Ltd (NASDAQ:MHUA) rose to 3-years lows; gaining 8,103.58% or 11.78 to 11.93. Shares in Clearside Biomedical Inc (NASDAQ:CLSD) fell to all time lows; losing 66.92% or 1.82 to 0.90. Shares in Twin Hospitality Group Inc (NASDAQ:TWNP) fell to all time lows; losing 39.44% or 1.40 to 2.15.

The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 12.46% to 20.51.

Gold Futures for February delivery was up 1.21% or 49.70 to $4,165.70 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in January rose 2.02% or 1.17 to hit $58.98 a barrel, while the February Brent oil contract rose 1.42% or 0.88 to trade at $62.82 a barrel.

EUR/USD was unchanged 0.06% to 1.15, while USD/JPY rose 0.33% to 156.90.

The US Dollar Index Futures was up 0.01% at 100.12.

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