The Technology Services industry is projected to recover to pre-pandemic revenue levels, fueled by the ongoing adoption of remote work and advancements in technologies like 5G, blockchain, and artificial intelligence (AI). The Bureau of Economic Analysis reported a 2.1% GDP growth rate in Q1 2026, compared to a mere 0.5% in Q4 2025, highlighting a strong recovery in the services sector. Companies such as Dave Inc. (DAVE), V2X Inc. (VVX), and Coherent Corp. (COHR) are positioned to benefit from these trends.
In the first quarter of 2026, Dave Inc. reported a 47% year-over-year revenue increase and a 44% adjusted EBITDA margin. V2X Inc. also saw a 23% revenue increase with a record $13.8 billion total backlog, while Coherent Corp. is witnessing a surge in demand for optical networking solutions, with its shares soaring 198.5% in the last year. Currently, the Technology Services industry holds a Zacks Industry Rank of #97, placing it in the top 39% of analyzed industries.
As of now, the Technology Services industry is trading at a valuation of 17.73x EV-to-EBITDA, compared to the S&P 500’s 18.68x. Despite underperforming against the S&P 500, which saw a 25.4% increase over the past year, the industry showed a 5.8% rise, outpacing the broader Zacks Business Services sector.
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