In this article, we will discuss the 10 Best Debt-Free IT Stocks to Buy Now.
Information technology stocks are trading near historic highs, driven by the artificial intelligence (AI) trade and hardware demand. The S&P 500’s Info Tech sector surged roughly 16% in the spring, commanding a record 37% of the S&P 500’s total market capitalization.
The rally has been driven by advances in AI models, wowing software engineers and convincing companies and investors that the technology will be useful and transformative.
“The AI train is moving forward,” said Joe Tanious, chief investment strategist for North America at Northern Trust Asset Management. “You don’t necessarily want to try to stop it or sit on the sidelines.”
According to Gradient Investments senior portfolio manager Keith Gangl, security software remains a top priority for IT departments regardless of the macro backdrop. Consequently, he believes there is a rare opportunity to buy a high-quality name “that’s on sale compared to where it normally trades.
Concerns about whether information technology companies could turn their enormous spending on AI into big profits have eased significantly. Strong corporate earnings and upbeat forecasts for the year are already affirming the underlying robust growth amid the massive spending.
“We are squarely in the acceleration phase of the AI era,” said Kevin Shea, senior equity strategist at BNY Wealth. “You take a look at the revenue growth from some of these large language models, it’s faster than anything we’ve seen before.”
While the biggest threat to information technology stocks’ rally could be inflation, let’s take a look at some of the best debt-free IT stocks to buy now, likely to shrug off any headwinds owing to their impressive track records and performance.
Our Methodology
We used the Finviz stock screener to identify S&P 500 stocks with enterprise value (EV) below their market capitalization. An EV-to-market-cap ratio of 1.0 or below typically indicates that a company has little to no debt. We then limited our final selection to stocks that have recently reported noteworthy developments likely to influence investor sentiment. These stocks are also popular among analysts and elite hedge funds in Q1 2026. Finally, we ranked the stocks in descending order based on their EV-to-Market ratio.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
Best Debt-Free IT Stocks to Buy Now
10. Accenture Plc (NYSE:ACN)
EV-to-Market Cap Ratio: 0.99
Stock Upside Potential: 40.46%
Number of Hedge Fund Holders: 64
Accenture Plc (NYSE:ACN) is one of the best debt-free IT stocks to buy now. On June 1, Truist Securities downgraded Accenture Plc (NYSE:ACN) to a Hold with a $210 price target. The downgrade came amid concerns the company could struggle amid constrained budgets in the sector.
In addition, Truist Securities remains wary of competition from new artificial intelligence plays. Artificial intelligence solutions are increasingly eating into the company’s core segments, resulting in revenue cannibalization. Consequently, there are concerns that the company could struggle amid headcount-based pricing models.
Nevertheless, the research firm also insists that the company is well-positioned to reshape its business model as it continues to expand its AI capabilities. The push is part of an effort to keep up with AI innovation and to shrug off potential disruptions.
For starters, it has inked a strategic collaboration with Mitsubishi Chemical Corporation to create an AI-powered platform for corporate operations. It has also partnered with HUMAIN to scale AI integration across sectors in Saudi Arabia.
Accenture Plc (NYSE:ACN) is a global professional services and technology consulting firm that helps organizations build, secure, and manage their digital infrastructure. It operates as an end-to-end IT provider, guiding companies from initial IT strategy and cloud migration to software engineering, artificial intelligence (AI) integration.
9. Cognizant Technology Solutions Corp (NASDAQ:CTSH)
EV-to-Market Cap Ratio: 0.98
Stock Upside Potential: 35.76%
Number of Hedge Fund Holders: 50
Cognizant Technology Solutions Corp (NASDAQ:CTSH) is one of the best debt-free IT stocks to buy now. On June 1, Cognizant Technology Solutions Corp (NASDAQ:CTSH) announced plans to bridge the gap between AI capabilities and enterprise implementation. The company launched Frontier Certified Engineer and Frontier Business Operator job categories.
Focusing on artificial intelligence work, the two new job categories are part of the company’s workforce strategy to pursue a $4.5 trillion opportunity in labor value. Frontier Certified Engineers specialize in helping organizations identify where AI can be applied to their business operations.
Cognizant is to leverage its proprietary training platform, Skill Spring, to develop talent that can manage a blended workforce of human and digital labor. The development of the two roles underscores Cognizant’s commitment to building human and operational infrastructure enterprises needed to make AI work at scale.
The company is looking to capitalize on the trend as organizations across sectors seek to turn AI investments into bottom-line results. Cognizant will benefit from investing in a talent model that enables the AI transition and makes it profitable.
Cognizant Technology Solutions Corp (NASDAQ:CTSH) is a global IT consulting and services company that helps businesses modernize their technology, automate processes, and build enterprise-grade Artificial Intelligence (AI) solutions. They act as a digital transformation partner, providing full-cycle software development, cloud migration, and tech infrastructure management.
8. Parsons Corporation (NYSE:PSN)
EV-to-Market Cap Ratio: 0.98
Stock Upside Potential: 14.40%
Number of Hedge Fund Holders: 35
Parsons Corporation (NYSE:PSN) is one of the best debt-free IT stocks to buy now. On June 6, Parsons Corporation (NYSE:PSN) inked a $99 million task order from the US Air Force Research Laboratory. The task order paves the way for the company to provide research, development, engineering, and demonstration of command-and-control technologies.
The award also includes a five-year, plus two-month, performance period, expected to enhance the company’s edge in the provision of advanced software solutions. That’s because the company is to support Global Application Research, Development, Engineering, and Maintenance 2 (GARDEM 2) Command and Control, Space and Intelligence, Surveillance & Reconnaissance (C2-SpISR) software baselines.
The $99 million contract underscores Parsons Edge’s in the delivery of next-generation software baselines and prototypes that can support the Department of War and the intelligence community. The company has carved a niche in delivering mission-ready capabilities at the speed of relevance. It has already supported the US Air Force on full-spectrum cyber operations, network modernizations, and edge computing, among others.
Parsons Corporation (NYSE:PSN) operates as a technology and engineering firm that provides software and hardware solutions at the intersection of national security and critical infrastructure. In the IT space, they specialize in cybersecurity, C5ISR (Command, Control, Computers, Communications, Cyber, Intelligence, Surveillance, and Reconnaissance), space and geospatial intelligence, and smart city software.
7. Innodata Inc. (NASDAQ:INOD)
EV-to-Market Cap Ratio: 0.97
Stock Upside Potential: -7.41%
Number of Hedge Fund Holders: 20
Innodata Inc. (NASDAQ:INOD) is one of the best debt-free IT stocks to buy now. On May 7, Innodata Inc. (NASDAQ:INOD) posted another record-setting first-quarter results, characterized by robust revenue growth, affirming that its strategic positioning is increasingly translating into scale-driven margin expansion and cash generation.
Revenue in the quarter was up 54% year over year to $90.1 million, while Adjusted EBITDA nearly doubled to $25 million, up from $12.7 million for the same period last year. Net income in the quarter totaled $14.9 million, or $0.46 a share, nearly double the $7.8 million, or $0.25 a share, delivered in the same quarter last year.
Following the impressive first quarter, Innodata has raised its full-year 2026 revenue growth guidance to about 40% from the previous expected growth of 35%. The revenue growth would come on the back of engagements with some of the world’s leading big tech companies, expected to generate $51 million in revenue.
In addition, Innodata continues to innovate at a rapid pace, having launched the Evaluation and Observability Platform in beta.
Innodata Inc. (NASDAQ:INOD) is a global data engineering company that builds, trains, and evaluates artificial intelligence systems. Operating at the core of IT, they provide the essential “picks and shovels” needed to make Large Language Models (LLMs) and Agentic AI work factually, safely, and accurately for major technology and enterprise clients.
6. Infosys Limited (NYSE:INFY)
EV-to-Market Cap Ratio: 0.94
Stock Upside Potential: 14.19%
Number of Hedge Fund Holders: 31
Infosys Limited (NYSE:INFY) is one of the best debt-free IT stocks to buy now. On June 2, Infosys Limited (NYSE:INFY) confirmed the expansion of its strategic collaboration with Norway’s largest bank, DNB Bank ASA. As part of the expanded partnerships, the bank is to leverage the company’s NICE Actimize X-Sight Enterprise platform to modernize its Financial Crime operations.
Consequently, Infosys is to implement a secure, scalable system that supports seamless data integration, advanced analytics, and intelligent automation. It will also integrate X-Sight’s key solutions for anti-money laundering and fraud to enhance DNB’s customer risk visibility.
In addition, Infosys is to help DNB transform fragmented legacy systems into an intelligence-driven, cloud-native platform. The ultimate goal is to enhance risk insights, improve detection accuracy, and enhance regulatory compliance. The integration will result in the end-to-end modernization of the bank’s FinCrime technology landscape. The bank will also be able to detect earlier, investigate more effectively, and respond with greater consistency.
Infosys Limited (NYSE:INFY) is a global technology services and consulting company that helps businesses digitally transform their operations. It provides a wide range of services, including custom software development, artificial intelligence (AI) solutions, cloud computing, and IT outsourcing.
While we acknowledge the potential of INFY to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INFY and that has 100x upside potential, check out our report about the cheapest AI stock.
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