Goldman Sachs: IT Services 2Q Guidance Moves Towards Midpoint, IBM Becomes Relative Beneficiary

According to TechFlow Research, Goldman Sachs' July 10 IT Services sector 2Q preview indicated that macro uncertainty has affected client decision-making since April-May, and companies are expected to lower guidance ceilings and anchor to the midpoint. IBM is the sector's only Buy rating (target price $335); software resilience coupled with enterprise AI demand makes it a relative beneficiary, with expected 2Q revenue of $17.86 billion, full-year $71.3 billion, and growth rate of 5.2%. EPAM faces greater downside risk (Neutral, target price $110), with full-year organic growth guidance potentially narrowing from 2.5%-5.0% to 2.5%-4.0%. Cognizant, Globant, and TaskUs all maintain Neutral.