In this article, we will take a look at the 12 Best Information Technology Services Stocks to Buy Now.
So far, the S&P 500 index has not had much of an impact from the U.S./Israel attack on Iran. Over the past five days, the index has plunged just over 1.40% as of March 3. With the war dragging on and the Strait of Hormuz closed, there are growing concerns about economic risks.
However, experts currently view the situation as having little impact and expect a short war. In an interview with CNBC on March 3, Joe Amato, President and Chief Investment Officer at Neuberger Berman, said that rising geopolitical tensions increase risk premia and can contribute to market volatility. He further pointed out that the U.S. economy entered 2026 on a solid footing with improving nominal growth and strong earnings. Amato remains positive on equities and expects the current pressure to be temporary rather than suggesting a broader downturn.
Similarly, Jeffrey O’Connor, U.S. head of equity market structure at Liquidnet, shares similar views on the impact of the current geopolitical landscape on equities. O’Connor stated:
I do think the possibility of a more prolonged mission can weigh on markets for the next several weeks. Historically, the U.S. market has been able to withstand a geopolitical shock like this, but that said, the Strait of Hormuz is now closed.
O’Connor sees the possibility of high oil prices leading to investors having to navigate future moves in inflation, yields, and expectations for interest rate cuts.
While geopolitical issues keep the market on its toes, we focus here on the IT services sector, which is heavily focused on AI. Within the technology space, the software sector is expected to remain a major beneficiary of AI-related developments. Here is what the research from Deloitte says:
In 2026, what it means to be a software company in the agentic artificial intelligence era could start to become clearer. Creating software is faster and cheaper than ever, and major players are expected to continue to move from simply adding AI features and functions to their products to AI-first engineering and product design. Competition will heat up as AI-native challengers begin to chip away at market leaders across business processes and create new market segments that were previously unaddressed by software.
The AI agents have the potential to drive substantial new growth for leading players. According to Gartner, around 40% of enterprise applications will be integrated with task-specific AI agents by the end of 2026, up from less than 5% today. While Gartner expects IT spending on software to increase 15% in 2026 (up from 11.5% in 2025), spending on IT Services is also expected to rise 8.7%, up from 6.4% in 2025, according to Gartner’s February 2026 forecasts. Mordor Intelligence estimates the IT Services market at around $490.86 billion in 2025. The firm projects it to reach $525.32 billion in 2026, and $737.42 billion in 2031.
With that, let’s take a look at the 12 Best Information Technology Services Stocks to Buy Now.
Copyright: andreykuzmin / 123RF Stock Photo
Our Methodology
To create the list of 12 best information technology services stocks to buy now, we looked at the largest IT services companies widely held by hedge funds. We selected the top 12 IT services companies with positive analyst views and strong upside. Finally, we ranked these 12 stocks based on the number of hedge fund holders in each stock using the hedge fund data sourced from Insider Monkey’s database, as of Q4 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Note: All the data is as of market close on March 3, 2026.
12. Broadridge Financial Solutions, Inc. (NYSE:BR)
Number of Hedge Fund Holders: 36
Broadridge Financial Solutions, Inc. (NYSE:BR) is one of the best information technology services stocks to buy now.
On February 12, Broadridge Financial Solutions, Inc. (NYSE:BR) reported that its Distributed Ledger Repo (DLR) platform processed an average daily volume of $365 billion in January 2026, indicating continued institutional adoption of tokenized real-asset settlement.
Broadridge’s DLR platform ended January 2026 with a total volume of $7.3 trillion, representing a remarkable 508% year-over-year growth rate. The company noted that it is expanding beyond core repo workflows into sponsored and intraday repo use cases. Through this transition, Broadridge can focus on achieving more efficient movement of high-quality collateral, greater precision in liquidity management, and lower financing costs across securities lending markets.
Broadridge also pointed out that in 2026, it plans to enter the next phase and scale into intraday funding and a wider range of tokenized asset classes. The company is unlocking new opportunities in this space while maintaining interoperability and resilience as tokenization gains momentum across global capital markets.
Broadridge Financial Solutions, Inc. (NYSE:BR) offers investor communications and technology-driven solutions for the financial services industry worldwide.
11. Jack Henry & Associates, Inc. (NASDAQ:JKHY)
Number of Hedge Fund Holders: 37
Jack Henry & Associates, Inc. (NASDAQ:JKHY) is one of the best information technology services stocks to buy now.
On February 5, TheFly reported that Morgan Stanley analyst James Faucette lifted the price target on Jack Henry & Associates, Inc. (NASDAQ:JKHY) from $168 to $183, keeping an Equal Weight rating on the stock.
The firm cited growing demand trends and favorable competitive commentary, which would lead to higher core revenue, as Faucette raised his year-over-year forecast to 6.5% in FY2027 and 7% in FY2028. Even though the rating remains Equal Weight, Faucette expects room for incremental upside as fundamentals remain stable and growth visibility improves.
Out of 17 analysts covering JKHY, 11 rate the stock as a Buy, while 5 have a Hold rating.
In another analyst update on February 17, Wells Fargo raised Jack Henry & Associates from Equal Weight to Overweight, increasing the price target from $181 to $196. TheFly mentioned that the firm sees growing confidence in JKHY’s 2027 revenue growth. Wells Fargo has added the firm to its ‘Fab 5’ list of top fintech stock picks.
Jack Henry & Associates, Inc. (NASDAQ:JKHY) is a financial technology firm that connects people and financial institutions through technology solutions and payment processing services.
10. Leidos Holdings, Inc. (NYSE:LDOS)
Number of Hedge Fund Holders: 37
Leidos Holdings, Inc. (NYSE:LDOS) is one of the best information technology services stocks to buy now.
On February 26, Leidos Holdings, Inc. (NYSE:LDOS) announced that the U.S. Air Force has officially designated its Small Cruise Missile as the AGM-190A.
This development marks the formal recognition of Leidos’ Small Cruise Missile as an affordable, adaptable stand-off strike solution for the Department of War. The 200-pound weapon showed a stand-off range of over 400 nautical miles during testing from a C-130 aircraft. The missile features modular hardware and open-system software that allows the AGM-190A to adapt to evolving mission requirements.
Leidos Holdings noted that this deal demonstrates the Air Force’s confidence in the company’s scalable defense capabilities. The company stated that this aligns with its NorthStar 2030 strategy, which focuses on innovative and cost-effective solutions.
In other news, on February 12, Leidos Holdings reported that it is accelerating the next phase of DODNet transformation. In the next phase, the company will shift eight additional Defense Agencies and Field Activities to its DODNet program, marking a major step forward in the $11.5 billion, 10-year Defense Enclave Services program. Leidos will be transitioning nearly 100,000 users to DODNet over the next 1.5 years.
Leidos Holdings, Inc. (NYSE:LDOS), along with its subsidiaries, offers services and solutions for government and commercial customers in the U.S. The company operates through segments including the National Security & Digital, Health & Civil, Commercial & International, and Defense Systems.
9. Aurora Innovation, Inc. (NASDAQ:AUR)
Number of Hedge Fund Holders: 40
Aurora Innovation, Inc. (NASDAQ:AUR) is one of the best information technology services stocks to buy now.
On February 23, Cathie Wood’s ARK Autonomous Technology & Robotics ETF (ARKQ) added 667,000 shares of Aurora Innovation, Inc. (NASDAQ:AUR) to its portfolio.
Following this purchase, the ARK Autonomous Technology & Robotics ETF now holds approximately 5.68 million shares of AUR, valued at $26.99 million. AUR accounts for 1.33% of ARKQ’s total portfolio as of March 3.
In other news, on February 11, Aurora Innovation announced that it is tripling its driverless freight network with its latest software launch. This development marks the company’s autonomous operations on a 1,000-mile route from Fort Worth to Phoenix, which surpasses conventional Hours of Service limits.
As of January 2026, Aurora Innovation has logged more than 250,000 driverless miles with zero driver-attributed collisions and expects to complete all commercial truck capacity by the third quarter of 2026. The company expects to deploy over 200 driverless trucks by year-end, with next-generation hardware scheduled for release in Q2.
Aurora Innovation, Inc. (NASDAQ:AUR) operates a self-driving technology business in the U.S. The company focuses on developing Aurora Driver, a platform that offers self-driving hardware, software, and data services.
8. CACI International Inc. (NYSE:CACI)
Number of Hedge Fund Holders: 42
CACI International Inc. (NYSE:CACI) is one of the best information technology services stocks to buy now.
On February 20, Truist Financial reiterated the Buy rating on CACI International Inc. (NYSE:CACI), keeping the price target at $800. The firm updated its model for CACI, which indicates upward revisions and a higher multiple driven by rapid expected growth.
Truist’s analyst Tobey Sommer expects CACI’s EV/EBITDA multiple to expand by almost two turns by 2029 from the current levels of around 14.8x. The analyst highlights a favorable mix shift toward higher-margin Mission Technology, robust organic growth, and accretive acquisitions as key factors driving margin expansion. In a bull-case scenario, Sommer anticipates CACI’s revenue CAGR to be around 14% and EBITDA CAGR to be almost 21%, fueled by a 70 basis points of annual margin expansion.
In another rating update on February 3, TheFly reported that JPMorgan lifted the price target on CACI from $645 to $700, maintaining its Overweight rating on the stock. The firm raised the price target on CACI, citing ongoing operational momentum.
CACI International Inc. (NYSE:CACI), along with its subsidiaries, provides expertise and technology solutions worldwide. The company provides IT services, including control, communications, and intelligence technology, as well as networks.
7. EPAM Systems, Inc. (NYSE:EPAM)
Number of Hedge Fund Holders: 44
EPAM Systems, Inc. (NYSE:EPAM) is one of the best information technology services stocks to buy now.
On February 23, TheFly reported that Mizuho Securities trimmed the price target on EPAM Systems, Inc. (NYSE:EPAM) from $228 to $199, while keeping an Outperform rating.
Mizuho remains positive on EPAM despite the price target reduction, with the current price target implying an upside of almost 42% as of March 3. The firm lowered the target after the company’s 2026 organic growth guidance fell short of investor expectations. The firm believes that the softer outlook is mainly driven by a sequential revenue drop from Neoris’ largest customer in the first quarter.
Over the past month, EPAM shares have plunged over 23%, and Mizuho sees this selloff as a buying opportunity, pointing to EPAM’s underlying business momentum.
In another rating update, TD Cowen also cut EPAM’s price target from $243 to $220, while maintaining a Buy rating. Apart from similar views to Mizuho’s on 2026 guidance, the firm sees improving pricing trends, AI-driven demand strength, margin expansion, and balance-sheet strength as key aspects of the stock’s positive outlook.
Out of 20 analysts covering EPAM, 70% rate it a Buy, while 30% rate it a Hold. The average price target of $195 indicates an upside potential of almost 40%.
EPAM Systems, Inc. (NYSE:EPAM) offers digital platform engineering and software development services. The company’s engineering services include requirement analysis and platform selection, customization, cross-platform migration, and implementation, among others.
6. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Number of Hedge Fund Holders: 49
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is one of the best information technology services stocks to buy now.
On January 28, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) renewed its partnership with Travel + Leisure Co. (NYSE:TNL).
The company did not reveal the total worth of the deal; however, it highlighted that the renewal is a multi-million-dollar strategic collaboration to accelerate Travel + Leisure’s digital transformation initiatives. Cognizant will enhance Travel + Leisure’s technology infrastructure, modernize application landscapes, and strengthen scalability and reliability. Cognizant will also focus on AI and embedded AI-driven data capabilities to improve the digital travel experience for Travel + Leisure’s travel club members and nearly 800,000 owner families.
In other news, on February 16, Cognizant Technology Solutions Corporation (NASDAQ:CTSH) announced an expansion of its partnership with Google Cloud. This is a strategic collaboration that enables Cognizant to move from platform integration to enterprise-scale execution. Cognizant’s focus is on assisting enterprises in operationalizing agentic AI in real-world scenarios.
The company will deploy Google Workspace and Gemini Enterprise to enhance productivity and delivery execution in internal operations. The company will bring together Google AI and Workspace to create a new market offering that streamlines AI-driven workflows such as supplier communications and collaborative content creation.
Out of 31 analysts covering CTSH, 51% rate the stock as a Hold, while 48% have a Buy rating. The stock has a median price target of $90, implying an upside potential of over 39.50% as of March 3.
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a professional IT services company that offers consulting and technology services. The company operates through four segments, including Financial Services, Health Sciences, Products and Resources, and Communications, Media and Technology.
5. Fidelity National Information Services, Inc. (NYSE:FIS)
Number of Hedge Fund Holders: 57
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the best information technology services stocks to buy now.
On February 23, Fidelity National Information Services, Inc. (NYSE:FIS) announced the launch of its Insurance Risk Suite AI Assistant. With the latest requirements, generative AI tools have become essential for organizations’ day-to-day operations.
The Insurance Risk AI Assistant is a generative AI tool designed to offer instant, 24/7 guidance in all languages. The company highlights that the AI tool promptly answers complex questions about building and maintaining risk models. It will also address rising industry issues, such as climate-driven volatility in claims and growing cyber threats. The AI tool is embedded directly within FIS’s Insurance Risk Suite, working as an expert. It will eliminate hours-long manual searching processes and help actuaries build resilient models.
Fidelity National Information Services pointed out that future enhancements are expected to include code generation and optimization, automated documentation, comprehensive explanations of calculations and errors, and more features across the risk management lifecycle.
We recently covered what analysts are saying about Fidelity National Information Services following its Q4 2025 earnings release. You can read that update here.
Fidelity National Information Services, Inc. (NYSE:FIS) is engaged in financial services technology solutions. The company provides its solutions to financial institutions, businesses, and developers worldwide.
4. CDW Corporation (NASDAQ:CDW)
Number of Hedge Fund Holders: 58
CDW Corporation (NASDAQ:CDW) is one of the best information technology services stocks to buy now.
On February 23, CDW Corporation (NASDAQ:CDW) submitted a filing for an automatic mixed securities shelf registration. This is a strategic move by CDW, which allows it to issue multiple securities, giving it the flexibility to raise capital when required to support its operations and growth initiatives.
Earlier, on February 4, CDW Corporation released its Q4 2025 results, reporting strong earnings for the quarter. The company posted $2.57 in adjusted earnings per share, ahead of the $2.44 estimate, and revenue came in at $5.51 billion, surpassing the $5.32 billion estimate by $179 million.
For 2026, the company expects to return 50% to 75% of adjusted FCF to shareholders through dividends and share repurchases. CDW Corporation estimates gross profit to grow in the low single digits for 2026, with a forecast of modest margin expansion. The company highlighted that it will remain active in the M&A market.
Of the 14 analysts covering CDW Corporation, 57% rate it a Buy, while 43% rate it a Hold. The average price target for CDW is $166, indicating upside potential of more than 33%.
CDW Corporation (NASDAQ:CDW) provides IT solutions in the U.S., the U.K., and Canada. The company offers discrete hardware and software products and services, including on-premises and cloud capabilities across hybrid infrastructure, digital experience, and security.
3. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 63
International Business Machines Corporation (NYSE:IBM) is one of the best information technology services stocks to buy now.
On February 24, International Business Machines Corporation (NYSE:IBM) announced that it has partnered with Deepgram, a firm that offers powerful enterprise voice solutions.
Through this collaboration, IBM will integrate Deepgram’s speech-to-text and text-to-speech technology into its Watsonx Orchestrate generative AI solution. Deepgram is IBM’s first voice partner, and through its APIs, it will offer IBM enterprise-grade, real-time transcription and captioning with accuracy.
IBM highlighted that this partnership will help them automate their operations and meet the rising demand for conversational AI technology. This will help users interact with digital agents across various dialects, including dozens of Arabic and Indian variants, as well as support regional accent recognition and natural-sounding voice.
Organizations are embracing AI-powered speech-to-text systems to automate real-time transcription. These technologies play a vital role in assisting customer care, support, call analysis, and voice-based data entry, especially in healthcare and finance sectors.
In other news, on February 25, IBM announced that it was awarded a $112 million contract from the Defense Commissary Agency. Under the five-year contract, IBM will modernize electronic shelf label systems across 177 U.S. commissaries and deploy new systems at 58 overseas stations in 12 countries.
In a recent story, we covered IBM as UBS upgraded the stock to Neutral. You can read more about it here.
International Business Machines Corporation (NYSE:IBM) offers integrated solutions and services globally. The company operates via four segments: Software, Consulting, Infrastructure, and Financing.
2. Accenture plc (NYSE:ACN)
Number of Hedge Fund Holders: 71
Accenture plc (NYSE:ACN) is one of the best information technology services stocks to buy now.
On February 24, Accenture plc (NYSE:ACN) reported that it had acquired an advanced AI technology solution from Avanseus.
Avanseus is a cloud-native product company, and its AI software, acquired by Accenture, will help the firm with models offering predictions, anomaly detection, and optimization for complex operations. This will add to Accenture’s strength in its cognitive network platform and enhance its ability to scale AI and machine learning models.
The advanced AI solution will enable better decision-making in complex network operations, allowing telecommunications providers to accelerate the transition to autonomous networks, boost financial performance, and enhance service agility.
The firm believes that the acquisition positions them at the forefront of network benchmarking and large-scale network transformation for global communications providers. The Global Network Practice Lead, Communications, Media, and High-Tech Industry at Accenture, Tejas Rao, noted that this strategic collaboration with Avanseus enables them to swiftly develop and deploy cutting-edge agentic AI solutions, assisting clients with a smooth transition to autonomous network operations.
Of the 48 analysts covering ACN, 54% rate the stock as a Buy, 43% as Hold, and 4% as Sell. The average price target of $301 presents an upside potential of over 43% as of March 3.
Accenture plc (NYSE:ACN) offers strategy & consulting, Accenture Song, Industry X, technology, and operations services globally. The company provides system integration, application management, data, AI, cloud, and automation services, as well as global delivery services.
1. Fiserv, Inc. (NASDAQ:FISV)
Number of Hedge Fund Holders: 83
Fiserv, Inc. (NASDAQ:FISV) is one of the best information technology services stocks to buy now.
On February 23, TheFly reported that B. Riley analyst Hal Goetsch reduced the price target on Fiserv, Inc. (NASDAQ:FISV) from $72 to $69, maintaining its Neutral rating on the stock.
The firm has reservations about FISV, citing expectations that near-term earnings per share growth will slow.
Goetsch forecasts the company’s earnings at around $8.06 per share for 2026, slightly below the average analyst estimate of $8.16. The analyst sees pressure around the company’s Financial Solutions segment, which could have an impact on the overall earnings, while expecting modest growth in Fiserv’s Merchant Solutions segment. Despite the temporary headwinds from fee reductions, Goetsch sees Merchant Solutions performing better compared to the Financial Solutions segment.
The trimmed price target still implies an upside potential of almost 10%. The firm expects earnings per share to regain momentum and return to $9 in 2027. The outlook for the period between 2023 and 2027 implies a compound annual growth rate of just under 5%, according to the firm.
The average price target of $71.50 on FISV indicates an upside potential of over 11% as of March 3.
While we acknowledge the potential of FISV 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 FISV and that has 100x upside potential, check out our report about this cheapest AI stock.
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