Wrapping up Q4 earnings, we look at the numbers and key takeaways for the it services & other tech stocks, including 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 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 12.1% 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 $126.6 million, up 98.2% year on year. This print exceeded analysts’ expectations by 14.8%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS and revenue estimates.

“The Dakotas represent a compelling region for hyperscalers due to their cool climate and abundant energy. We believe our first-mover advantage, combined with our proven ability to execute technically complex data center construction, positions Applied Digital with a strong competitive advantage. Having already secured two hyperscalers in the region, inbound demand has increased meaningfully. We are also in advanced discussions with another investment-grade hyperscaler across multiple regions, including additional locations in the Dakotas and select southern U.S. markets. While there can be no assurance of future contracts, we believe we are well positioned to begin construction in the near term on these new sites,” said Wes Cummins, Chairman and Chief Executive Officer.

The stock is down 16.6% since reporting and currently trades at $24.64.

Is now the time to buy Applied Digital? Access our full analysis of the earnings results here, it’s free.

IonQ (NYSE: IONQ)

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

IonQ reported revenues of $61.89 million, up 429% year on year, outperforming analysts’ expectations by 53.2%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.

IonQ achieved the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 16.7% since reporting. It currently trades at $27.98.

Is now the time to buy IonQ? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Xerox (NASDAQ: XRX)

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 and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 44.4% since the results and currently trades at $1.30.

Read our full analysis of Xerox’s results here.

Gartner (NYSE: IT)

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 $1.75 billion, up 2.2% year on year. This number met analysts’ expectations. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates and revenue in line with analysts’ estimates.

The stock is down 23% since reporting and currently trades at $155.83.

Read our full, actionable report on Gartner here, it’s free.

Cisco (NASDAQ: CSCO)

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 topped analysts’ expectations by 1.5%. It was a strong quarter as it also produced revenue guidance for next quarter exceeding analysts’ expectations and a decent beat of analysts’ revenue estimates.

The stock is down 9% since reporting and currently trades at $77.86.

Read our full, actionable report on Cisco here, it’s free.

Market Update

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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.