IT Services & Other Tech Stocks Q2 Recap: Benchmarking Cisco (NASDAQ:CSCO)

September 14, 2025 at 23:37 PM EDT

CSCO Cover Image

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at it services & other tech stocks, starting with Cisco (NASDAQ: CSCO).

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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 2.1% on average since the latest earnings results.

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 $14.67 billion, up 7.6% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a narrow beat of analysts’ EPS guidance for next quarter estimates but billings in line with analysts’ estimates.

"We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution," said Chuck Robbins, chair and CEO of Cisco.

Unsurprisingly, the stock is down 5.4% since reporting and currently trades at $66.50.

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

Best Q2: 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 $38.01 million, down 13% year on year, in line with analysts’ expectations. The business had a very strong quarter with a beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 86.5% since reporting. It currently trades at $18.69.

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

Weakest Q2: 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 $1.58 billion, flat year on year, exceeding analysts’ expectations by 1.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 29.1% since the results and currently trades at $3.70.

Read our full analysis of Xerox’s results here.

Pure Storage (NYSE: PSTG)

Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.

Pure Storage reported revenues of $861 million, up 12.7% year on year. This print surpassed analysts’ expectations by 1.7%. Overall, it was a very strong quarter as it also put up a solid beat of analysts’ billings estimates and a beat of analysts’ EPS estimates.

The stock is up 34.7% since reporting and currently trades at $82.01.

Read our full, actionable report on Pure Storage 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 $17.73 billion, up 7.7% year on year. This result beat analysts’ expectations by 2.3%. Zooming out, it was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates.

The stock is down 22% since reporting and currently trades at $238.74.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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.

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