Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at DXC (NYSE: DXC) and the best and worst performers in the it services & consulting industry.

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 7 it services & consulting stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% 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 27.4% since the latest earnings results.

DXC (NYSE: DXC)

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

DXC reported revenues of $3.19 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ EPS guidance for next quarter estimates.

"We delivered third quarter results with solid profit margins, continued strong free cash flow generation and improved bookings. This reflects disciplined execution across our business," said DXC Technology President and CEO Raul Fernandez.

DXC delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 17.1% since reporting and currently trades at $11.95.

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

Best Q4: 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 12.8% year on year, outperforming analysts’ expectations by 1.1%. The business had a satisfactory quarter with a decent beat of analysts’ full-year EPS guidance estimates.

EPAM delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 22.7% since reporting. It currently trades at $129.63.

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

Weakest Q4: Kyndryl (NYSE: KD)

Born from IBM's managed infrastructure services business in a 2021 spinoff, Kyndryl (NYSE: KD) is the world's largest IT infrastructure services provider that designs, builds, and manages technology environments for enterprise customers.

Kyndryl reported revenues of $3.86 billion, up 3.1% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue estimates.

Kyndryl delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 51.1% since the results and currently trades at $11.50.

Read our full analysis of Kyndryl’s results here.

ASGN (NYSE: ASGN)

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%. Aside from that, 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 23.1% since reporting and currently trades at $40.96.

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

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 $18.74 billion, up 6% year on year. This result surpassed analysts’ expectations by 1.2%. Zooming out, it was a mixed quarter as it also produced a beat of analysts’ EPS estimates but a slight miss of analysts’ full-year EPS guidance estimates.

The stock is down 26% since reporting and currently trades at $202.51.

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

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