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3 Technology Services Stocks to Consider Amid Industry Turmoil
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The Technology Servicesindustry is expected to reach the pre-pandemic levels eventually, enabling regular dividend payments. The rising adoption of remote work, swift global digital transition and technological advancements like 5G, blockchain, artificial intelligence (AI) and machine learning (ML) will propel industry expansion. Also, raising concerns about data security will provide an impetus for the industry to grow.
The Zacks Technology Services industry encompasses companies involved in producing, developing and designing various software support, data processing, computing hardware and communications equipment. These offerings range from integrated powertrain technologies, advanced analytics, technology solutions and contract research services to semiconductor packaging and interconnect technologies, collaboration software, specialty printers, and data acquisition and analysis systems. This industry caters to consumer and business markets and serves diverse end markets and customer segments. Additionally, some industry players offer advanced analytics, clinical research services, data storage technology and solutions, and technology-enabled financial services for consumers and small business owners.
Factors Structuring the Future of Technology Services
Rising Demand Environment: The industry is mature, with the demand for services remaining healthy over time. Revenues and cash flows are expected to eventually reach the pre-pandemic levels, aiding most industry players to pay out stable dividends.
Economic Recovery: The sector is a major beneficiary of the broader economy and service activities. According to the Bureau of Economic Analysis, GDP hiked at an annual rate of 4.4% in the third quarter of 2025, a significant jump from the 3.8% reported in the second quarter of 2025. Economic activities in the non-manufacturing sector are in good shape. The Services PMI measured by the Institute for Supply Management has stayed above the 50% mark for 10 months in 2025.
Technological Advancement Takes Center Stage: The global shift toward digitization creates opportunities in various markets, including 5G, blockchain and AI. The United States, a significant player in the IT sector, is positioned for growth on the widespread adoption of smart technologies and increased investments in security. Companies are increasingly adopting generative AI, ML, blockchain and data science to gain a competitive advantage. Per Statista, the GenAI market is anticipated to reach $91.6 billion in 2026 and see a CAGR of 34.3% from through 2031.
Zacks Industry Rank Indicates Sluggish Near-Term Prospects
The Zacks Technology Services industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #153. This rank places it in the bottom 37% of 243 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock market performance and current valuation.
Industry Beats Sector, Underperforms S&P 500
The Zacks Technology Services industry has outperformed the broader Zacks Business Services sector but underperformed the Zacks S&P 500 composite over the past year.
The industry has returned 11.4% over this period against the 16.5% decline of the broader sector and compared with the 18.8% rally of the Zacks S&P 500 composite.
1-Year Price Performance
Industry's Current Valuation
On the basis of EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization), which is commonly used for valuing staffing stocks because of their high debt levels, the industry is currently trading at 17.83X compared with the S&P 500’s 19.08X and the sector’s 10.57X.
Over the past five years, the industry has traded as high as 19.45X and as low as 10.61X, with the median being 15.76X, as the charts below show.
EV-to-EBITDA
3 Technology Services Poised for Growth
Figure Technology Solutions: This fintech company offers blockchain-based products and solutions. The recently reported quarter underscores Figure Technology Solutions’ operational strength and profitability. In the third quarter of 2025, adjusted EBITDA reached $86 million, a lofty 75% year-over-year rally, hailing 55% in margins. Net income skyrocketed three times from the year-ago quarter.
The swift adoption of Figure Connect was evidenced by zero volumes in the marketplace in June 2024 to comprising nearly half of its total customer loan marketplace volume in the quarter. The first lien lending volume tripled year over year, proliferating through the partner ecosystem swiftly. On the transactional efficiency front, FIGR witnessed nearly 85-basis-point savings in securitization costs leveraging blockchain, enabling it to lower third-party review costs.
FIGR’s customer-centric strategy paid out dividends as Figure Technology Solutions grew from business-to-business to a consumer platform and partnered with approximately 250 third parties. During the aforementioned quarter, the company grabbed a major win as it onboarded one of the largest mortgage services in the U.S. to its marketplace. Also, it added seven buyers to its securitization program, including a prominent sovereign wealth fund that turned out to be a programmatic buyer, aiding its larger ecosystem.
Figure Technology Solutions currently flaunts a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its 2026 bottom line has increased 11.4% in the past 60 days. FIGR shares have surged 63% in a month.
Skillsoft: This company offers bespoke, immersive learning experiences and enterprise-ready solutions in the United States. SKIL followed an erratic growth trajectory over the past few quarters. In the third quarter of fiscal 2026, the top line moved up marginally sequentially while dipping 6% year over year. This unfortunate performance is attributed to an 18% year-over-year decline in the Global Knowledge (GK) segment, which represented 22% of the top line. However, management’s proactive decision to review strategic alternatives for the GK segment is reassuring.
In view of a potential sale of the GK segment, we can expect Skillsoft to mitigate market shrinkage caused by its balance sheet, which recorded a $20.8-million non-cash goodwill impairment loss, leading to a $4.9-million adjusted net loss. While the Talent Development Solutions segment registered a 2% year-over-year dip, management’s optimism about the company’s AI-native roadmap through Percipio appears encouraging.
SKIL’s AI-first strategy lowered content and software development expenses by 2.4% year over year, selling and marketing expenses by 7.1%, and general and administrative expenses by 11.9%. This prudent expense management translated into a resilient EBITDA margin despite a double-digit dip in GK revenues. Hence, we anticipate a strategic divorce from the GK segment to enhance a high-margin SaaS platform, normalizing margin in the long run.
Skillsoft currently sports a Zacks Rank #1. The Zacks Consensus Estimate for 2026 EPS has moved up 19.8% in the past 60 days. SKILshares have moved up 9.4% in a month.
Adeia: This is a media and semiconductor intellectual property (IP) licensing company. In the third quarter of 2025, ADEA’s top line was $87.3 million, in line with the company’s expectations. Notably, non-Pay TV recurring revenues gained 31% year over year.
ADEA’s cost-saving initiatives yielded results in the third quarter of 2025 as it recorded a 9% year-over-year dip in its operating expenses, with research and development expenses rising 1%. Selling, general and administrative expenses declined 8% mainly due to a dip in corporate administrative expenses and lower personnel costs. The company’s prudent expense management is vital to its scalability.
Adeia witnessed customer wins and renewals on the back of IP portfolio growth since separation from Xperi. At the time of separation, the company had nearly 9,500 patent assets that surged to 13,000 in the third quarter of 2025, highlighting 35% year-over-year growth. ADEA’s e-commerce momentum is impressive, evidenced by the signing of four e-commerce customers since entering this market and management expects more in the coming quarters, ensuring optimism and confidence in its operations.
The semiconductor market is anticipated to pay off in the long run. Management is capitalizing on the adoption of hybrid bonding, with expected momentum in High Bandwidth Memory and NAND markets by 2027.
ADEA presently flaunts a Zacks Rank #1. The Zacks Consensus Estimate for its 2026 bottom line has increased 4.9% in the past 60 days. ADEA shares have gained 4.4% in a month.
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3 Technology Services Stocks to Consider Amid Industry Turmoil
The Technology Servicesindustry is expected to reach the pre-pandemic levels eventually, enabling regular dividend payments. The rising adoption of remote work, swift global digital transition and technological advancements like 5G, blockchain, artificial intelligence (AI) and machine learning (ML) will propel industry expansion. Also, raising concerns about data security will provide an impetus for the industry to grow.
Figure Technology Solutions, Inc. (FIGR - Free Report) , Skillsoft (SKIL - Free Report) and Adeia Inc. (ADEA - Free Report) are poised to gain from the prevailing trends.
About the Industry
The Zacks Technology Services industry encompasses companies involved in producing, developing and designing various software support, data processing, computing hardware and communications equipment. These offerings range from integrated powertrain technologies, advanced analytics, technology solutions and contract research services to semiconductor packaging and interconnect technologies, collaboration software, specialty printers, and data acquisition and analysis systems. This industry caters to consumer and business markets and serves diverse end markets and customer segments. Additionally, some industry players offer advanced analytics, clinical research services, data storage technology and solutions, and technology-enabled financial services for consumers and small business owners.
Factors Structuring the Future of Technology Services
Rising Demand Environment: The industry is mature, with the demand for services remaining healthy over time. Revenues and cash flows are expected to eventually reach the pre-pandemic levels, aiding most industry players to pay out stable dividends.
Economic Recovery: The sector is a major beneficiary of the broader economy and service activities. According to the Bureau of Economic Analysis, GDP hiked at an annual rate of 4.4% in the third quarter of 2025, a significant jump from the 3.8% reported in the second quarter of 2025. Economic activities in the non-manufacturing sector are in good shape. The Services PMI measured by the Institute for Supply Management has stayed above the 50% mark for 10 months in 2025.
Technological Advancement Takes Center Stage: The global shift toward digitization creates opportunities in various markets, including 5G, blockchain and AI. The United States, a significant player in the IT sector, is positioned for growth on the widespread adoption of smart technologies and increased investments in security. Companies are increasingly adopting generative AI, ML, blockchain and data science to gain a competitive advantage. Per Statista, the GenAI market is anticipated to reach $91.6 billion in 2026 and see a CAGR of 34.3% from through 2031.
Zacks Industry Rank Indicates Sluggish Near-Term Prospects
The Zacks Technology Services industry, which is housed within the broader Zacks Business Services sector, currently carries a Zacks Industry Rank #153. This rank places it in the bottom 37% of 243 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates continued outperformance in the near term. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks that you may want to consider for your portfolio, let us look at the industry’s recent stock market performance and current valuation.
Industry Beats Sector, Underperforms S&P 500
The Zacks Technology Services industry has outperformed the broader Zacks Business Services sector but underperformed the Zacks S&P 500 composite over the past year.
The industry has returned 11.4% over this period against the 16.5% decline of the broader sector and compared with the 18.8% rally of the Zacks S&P 500 composite.
1-Year Price Performance
Industry's Current Valuation
On the basis of EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation and amortization), which is commonly used for valuing staffing stocks because of their high debt levels, the industry is currently trading at 17.83X compared with the S&P 500’s 19.08X and the sector’s 10.57X.
Over the past five years, the industry has traded as high as 19.45X and as low as 10.61X, with the median being 15.76X, as the charts below show.
EV-to-EBITDA
3 Technology Services Poised for Growth
Figure Technology Solutions: This fintech company offers blockchain-based products and solutions. The recently reported quarter underscores Figure Technology Solutions’ operational strength and profitability. In the third quarter of 2025, adjusted EBITDA reached $86 million, a lofty 75% year-over-year rally, hailing 55% in margins. Net income skyrocketed three times from the year-ago quarter.
The swift adoption of Figure Connect was evidenced by zero volumes in the marketplace in June 2024 to comprising nearly half of its total customer loan marketplace volume in the quarter. The first lien lending volume tripled year over year, proliferating through the partner ecosystem swiftly. On the transactional efficiency front, FIGR witnessed nearly 85-basis-point savings in securitization costs leveraging blockchain, enabling it to lower third-party review costs.
FIGR’s customer-centric strategy paid out dividends as Figure Technology Solutions grew from business-to-business to a consumer platform and partnered with approximately 250 third parties. During the aforementioned quarter, the company grabbed a major win as it onboarded one of the largest mortgage services in the U.S. to its marketplace. Also, it added seven buyers to its securitization program, including a prominent sovereign wealth fund that turned out to be a programmatic buyer, aiding its larger ecosystem.
Figure Technology Solutions currently flaunts a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its 2026 bottom line has increased 11.4% in the past 60 days. FIGR shares have surged 63% in a month.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Skillsoft: This company offers bespoke, immersive learning experiences and enterprise-ready solutions in the United States. SKIL followed an erratic growth trajectory over the past few quarters. In the third quarter of fiscal 2026, the top line moved up marginally sequentially while dipping 6% year over year. This unfortunate performance is attributed to an 18% year-over-year decline in the Global Knowledge (GK) segment, which represented 22% of the top line. However, management’s proactive decision to review strategic alternatives for the GK segment is reassuring.
In view of a potential sale of the GK segment, we can expect Skillsoft to mitigate market shrinkage caused by its balance sheet, which recorded a $20.8-million non-cash goodwill impairment loss, leading to a $4.9-million adjusted net loss. While the Talent Development Solutions segment registered a 2% year-over-year dip, management’s optimism about the company’s AI-native roadmap through Percipio appears encouraging.
SKIL’s AI-first strategy lowered content and software development expenses by 2.4% year over year, selling and marketing expenses by 7.1%, and general and administrative expenses by 11.9%. This prudent expense management translated into a resilient EBITDA margin despite a double-digit dip in GK revenues. Hence, we anticipate a strategic divorce from the GK segment to enhance a high-margin SaaS platform, normalizing margin in the long run.
Skillsoft currently sports a Zacks Rank #1. The Zacks Consensus Estimate for 2026 EPS has moved up 19.8% in the past 60 days. SKILshares have moved up 9.4% in a month.
Adeia: This is a media and semiconductor intellectual property (IP) licensing company. In the third quarter of 2025, ADEA’s top line was $87.3 million, in line with the company’s expectations. Notably, non-Pay TV recurring revenues gained 31% year over year.
ADEA’s cost-saving initiatives yielded results in the third quarter of 2025 as it recorded a 9% year-over-year dip in its operating expenses, with research and development expenses rising 1%. Selling, general and administrative expenses declined 8% mainly due to a dip in corporate administrative expenses and lower personnel costs. The company’s prudent expense management is vital to its scalability.
Adeia witnessed customer wins and renewals on the back of IP portfolio growth since separation from Xperi. At the time of separation, the company had nearly 9,500 patent assets that surged to 13,000 in the third quarter of 2025, highlighting 35% year-over-year growth. ADEA’s e-commerce momentum is impressive, evidenced by the signing of four e-commerce customers since entering this market and management expects more in the coming quarters, ensuring optimism and confidence in its operations.
The semiconductor market is anticipated to pay off in the long run. Management is capitalizing on the adoption of hybrid bonding, with expected momentum in High Bandwidth Memory and NAND markets by 2027.
ADEA presently flaunts a Zacks Rank #1. The Zacks Consensus Estimate for its 2026 bottom line has increased 4.9% in the past 60 days. ADEA shares have gained 4.4% in a month.