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Buy 3 Computers IT Services Stocks to Enhance Your Portfolio Returns
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Key Takeaways
VRT is benefiting from AI infrastructure demand, with higher-density power and thermal needs driving growth.
SOUN raised its 2026 revenue outlook to $230-$260 million on accelerating enterprise AI adoption.
G expects Agentic Operations to grow at least 25% in 2026, with Agentic Solutions topping $1 billion in TCV.
The Zacks-defined Computers – IT Services industry has been benefiting from the ongoing digitization efforts globally. Robust spending on cloud, Internet of Things, cybersecurity, data analytics, artificial intelligence (AI) and automation is driving industry-wide growth.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Vertiv Holdings Co.
Zacks Rank #2 VERTIV has been benefiting from demand for AI infrastructure, expanding data center complexity and continued investment in capacity and technology. Management emphasized that AI and general compute demand are driving larger and more infrastructure-intensive deployments. VRT’s power, cooling and services portfolio positions it to support next-generation data center expansion.
Rising Power and Thermal Requirements for AI Data Centers
VRT is focused on evolving power architectures as AI workloads require greater density. The company is developing solutions supporting multiple architectures, including 800-volt DC systems, while continuing to serve traditional AC-based deployments.
Vertiv is working with NVIDIA Corp. (NVDA - Free Report) and VisionBay AI on AI data center deployments in Taiwan, including power, thermal and services solutions for NVIDIA GB300 systems. VRT said that these projects demonstrate demand for higher-density infrastructure.
Vertiv also emphasized thermal management capabilities, including liquid cooling and closed-loop cooling systems designed to reduce water usage in data center operations. Management said that these solutions expand its differentiation in long-term infrastructure services.
Strong Guidance
For the third quarter of 2026, VRT expects net sales of $3.65 billion to $3.85 billion and adjusted earnings of $1.77 to $1.83 per share. Adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%.
For 2026, net sales are now forecast in the range of $13.8 billion to $14.2 billion, up $250 million at the midpoint from the prior guidance. Adjusted earnings are projected in the range of $6.65 to $6.75 per share, while adjusted operating profit is expected between $3.29 billion and $3.37 billion. Adjusted free cash flow guidance was raised to $2.4 billion-$2.6 billion.
Solid Estimate Revisions
Vertiv has an expected revenue and earnings growth rate of 36.6% and 58.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.6% over the last 30 days.
VRT has an expected revenue and earnings growth rate of 29.2% and 33.9%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.3% over the last 30 days.
Image Source: Zacks Investment Research
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 31.8% from the last closing price of $257.08. The brokerage target price is currently in the range of $245-$412. This indicates a maximum upside of 60.2% and a downside of 4.7%.
SoundHound AI Inc.
SoundHound has seen record-high revenue growth in the last reported quarter driven by accelerating enterprise adoption of its OASYS agentic AI platform. SOUN’s expanding enterprise customer base, leadership in voice and agentic AI and debt-free balance sheet support its long-term growth outlook.
Growing Adoption of Conversational and Agentic AI
SOUN is benefiting from the rising enterprise adoption of conversational and agentic AI as businesses increasingly automate customer interactions across voice, chat and digital channels. The company has expanded beyond its traditional automotive business into restaurants, retail, healthcare, financial services, telecommunications, energy and other enterprise verticals, creating multiple long-term growth avenues.
One of the industry's most differentiated independent voice AI platforms has been built by SOUN with nearly two decades of research and development. Its proprietary Speech-to-Meaning and Deep Meaning Understanding technologies enable faster, more accurate conversational AI than traditional speech-to-text architectures.
SOUN’s technology is now backed by more than 400 patents, while OASYS combines capabilities from SoundHound and acquired businesses into a unified platform for conversational and agentic AI. Currently, SOUN carries a Zacks Rank #2 (Buy).
Strong Guidance
SoundHound AI raised its full-year 2026 revenue outlook to $230 - $260 million following strong second-quarter results.
Strong Estimate Revisions
SoundHound AI has an expected revenue and earnings growth rate of 41% and -23.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.1% over the last 30 days.
SOUN has an expected revenue and earnings growth rate of 14.6% and 14.7%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 13.3% over the last 30 days.
Image Source: Zacks Investment Research
Huge Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 68.8% from the last closing price of $7.11. The brokerage target price is currently in the range of $7-$16. This indicates a maximum upside of 125% and a downside of 1.6%.
Genpact Ltd.
Genpact is poised for growth with AI-driven solutions, including the Digital Smart Enterprise Process (SEP) approach and Genpact Cora platform, which are accelerating clients’ digital transformations. Genpact combines process expertise with analytics, digital technology and consulting across mission-critical workflows, which supports client acquisition and broader account penetration.
AI-Led Mix Shift
Genpact’s Agentic Operations strategy extends its long-standing process expertise into data, AI, digital technology, advisory and agentic solutions. Management expects this business to grow at least 25% in 2026. Agentic Solutions are on track to exceed $1 billion of total contract value in 2026.
G’s Digital SEP is a patented approach to enhance the performance of clients’ business processes using AI. Digital SEPs decrease inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies, and experience-centric principles.
Genpact Cora is an automation-to-AI-based platform that combines the company’s proprietary automation, analytics and AI technologies into a single common platform, accelerating clients’ digital transformations. We believe that G is well-positioned to take advantage of future AI advancements.
Strong Guidance
For the third quarter, Genpact expects revenues of $1.369-$1.382 billion. Adjusted earnings are projected at $1.04-$1.05 per share. For 2026, Genpact continues to expect reported revenue growth of at least 7%. Using the provided year-ago sales figure of $5.08 billion, this implies revenues of at least $5.44 billion.
The company also raised adjusted diluted earnings growth guidance to at least 12%. Its outlook reconciliation indicates adjusted earnings of $4.09 per share. Genpact expects a 36.5% gross margin and a 17.7% adjusted operating margin for the year.
Solid Estimate Revisions
Genpact has an expected revenue and earnings growth rate of 7% and 12.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 30 days.
G has an expected revenue and earnings growth rate of 7.1% and 9.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.4% over the last 30 days.
Image Source: Zacks Investment Research
Impressive Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 10.9% from the last closing price of $38.02. The brokerage target price is currently in the range of $31-$58. This indicates a maximum upside of 52.6% and a downside of 18.4%.
View the Zacks #1 Rank List
Image: Shutterstock
Buy 3 Computers IT Services Stocks to Enhance Your Portfolio Returns
Key Takeaways
The Zacks-defined Computers – IT Services industry has been benefiting from the ongoing digitization efforts globally. Robust spending on cloud, Internet of Things, cybersecurity, data analytics, artificial intelligence (AI) and automation is driving industry-wide growth.
We have narrowed our search to three stocks from the industry with a favorable Zacks Rank. These are: Vertiv Holdings Co. (VRT - Free Report) , SoundHound AI Inc. (SOUN - Free Report) and Genpact Ltd. (G - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our three picks year to date.
Image Source: Zacks Investment Research
Vertiv Holdings Co.
Zacks Rank #2 VERTIV has been benefiting from demand for AI infrastructure, expanding data center complexity and continued investment in capacity and technology. Management emphasized that AI and general compute demand are driving larger and more infrastructure-intensive deployments. VRT’s power, cooling and services portfolio positions it to support next-generation data center expansion.
Rising Power and Thermal Requirements for AI Data Centers
VRT is focused on evolving power architectures as AI workloads require greater density. The company is developing solutions supporting multiple architectures, including 800-volt DC systems, while continuing to serve traditional AC-based deployments.
Vertiv is working with NVIDIA Corp. (NVDA - Free Report) and VisionBay AI on AI data center deployments in Taiwan, including power, thermal and services solutions for NVIDIA GB300 systems. VRT said that these projects demonstrate demand for higher-density infrastructure.
Vertiv also emphasized thermal management capabilities, including liquid cooling and closed-loop cooling systems designed to reduce water usage in data center operations. Management said that these solutions expand its differentiation in long-term infrastructure services.
Strong Guidance
For the third quarter of 2026, VRT expects net sales of $3.65 billion to $3.85 billion and adjusted earnings of $1.77 to $1.83 per share. Adjusted operating profit is projected to be between $898 million and $938 million, with an adjusted operating margin of 24% to 25%.
For 2026, net sales are now forecast in the range of $13.8 billion to $14.2 billion, up $250 million at the midpoint from the prior guidance. Adjusted earnings are projected in the range of $6.65 to $6.75 per share, while adjusted operating profit is expected between $3.29 billion and $3.37 billion. Adjusted free cash flow guidance was raised to $2.4 billion-$2.6 billion.
Solid Estimate Revisions
Vertiv has an expected revenue and earnings growth rate of 36.6% and 58.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 3.6% over the last 30 days.
VRT has an expected revenue and earnings growth rate of 29.2% and 33.9%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 3.3% over the last 30 days.
Image Source: Zacks Investment Research
Robust Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 31.8% from the last closing price of $257.08. The brokerage target price is currently in the range of $245-$412. This indicates a maximum upside of 60.2% and a downside of 4.7%.
SoundHound AI Inc.
SoundHound has seen record-high revenue growth in the last reported quarter driven by accelerating enterprise adoption of its OASYS agentic AI platform. SOUN’s expanding enterprise customer base, leadership in voice and agentic AI and debt-free balance sheet support its long-term growth outlook.
Growing Adoption of Conversational and Agentic AI
SOUN is benefiting from the rising enterprise adoption of conversational and agentic AI as businesses increasingly automate customer interactions across voice, chat and digital channels. The company has expanded beyond its traditional automotive business into restaurants, retail, healthcare, financial services, telecommunications, energy and other enterprise verticals, creating multiple long-term growth avenues.
One of the industry's most differentiated independent voice AI platforms has been built by SOUN with nearly two decades of research and development. Its proprietary Speech-to-Meaning and Deep Meaning Understanding technologies enable faster, more accurate conversational AI than traditional speech-to-text architectures.
SOUN’s technology is now backed by more than 400 patents, while OASYS combines capabilities from SoundHound and acquired businesses into a unified platform for conversational and agentic AI. Currently, SOUN carries a Zacks Rank #2 (Buy).
Strong Guidance
SoundHound AI raised its full-year 2026 revenue outlook to $230 - $260 million following strong second-quarter results.
Strong Estimate Revisions
SoundHound AI has an expected revenue and earnings growth rate of 41% and -23.1%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 11.1% over the last 30 days.
SOUN has an expected revenue and earnings growth rate of 14.6% and 14.7%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 13.3% over the last 30 days.
Image Source: Zacks Investment Research
Huge Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 68.8% from the last closing price of $7.11. The brokerage target price is currently in the range of $7-$16. This indicates a maximum upside of 125% and a downside of 1.6%.
Genpact Ltd.
Genpact is poised for growth with AI-driven solutions, including the Digital Smart Enterprise Process (SEP) approach and Genpact Cora platform, which are accelerating clients’ digital transformations. Genpact combines process expertise with analytics, digital technology and consulting across mission-critical workflows, which supports client acquisition and broader account penetration.
AI-Led Mix Shift
Genpact’s Agentic Operations strategy extends its long-standing process expertise into data, AI, digital technology, advisory and agentic solutions. Management expects this business to grow at least 25% in 2026. Agentic Solutions are on track to exceed $1 billion of total contract value in 2026.
G’s Digital SEP is a patented approach to enhance the performance of clients’ business processes using AI. Digital SEPs decrease inefficiency and improve process quality using AI, advanced domain-specific digital technologies, Lean Six Sigma methodologies, and experience-centric principles.
Genpact Cora is an automation-to-AI-based platform that combines the company’s proprietary automation, analytics and AI technologies into a single common platform, accelerating clients’ digital transformations. We believe that G is well-positioned to take advantage of future AI advancements.
Strong Guidance
For the third quarter, Genpact expects revenues of $1.369-$1.382 billion. Adjusted earnings are projected at $1.04-$1.05 per share. For 2026, Genpact continues to expect reported revenue growth of at least 7%. Using the provided year-ago sales figure of $5.08 billion, this implies revenues of at least $5.44 billion.
The company also raised adjusted diluted earnings growth guidance to at least 12%. Its outlook reconciliation indicates adjusted earnings of $4.09 per share. Genpact expects a 36.5% gross margin and a 17.7% adjusted operating margin for the year.
Solid Estimate Revisions
Genpact has an expected revenue and earnings growth rate of 7% and 12.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 1.5% over the last 30 days.
G has an expected revenue and earnings growth rate of 7.1% and 9.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 1.4% over the last 30 days.
Image Source: Zacks Investment Research
Impressive Price Upside Potential
The short-term average price target of brokerage firms represents an increase of 10.9% from the last closing price of $38.02. The brokerage target price is currently in the range of $31-$58. This indicates a maximum upside of 52.6% and a downside of 18.4%.