Chicago, IL – October 13, 2026 – Zacks Equity Research has highlighted three companies in the Technology Services industry—Coherent Corp., GigaCloud Technology, and ScanSource—that are expected to thrive due to current market conditions. The industry is projected to recover to pre-pandemic levels, benefiting from increased remote work adoption, global digital transformation, and technological advancements such as 5G and artificial intelligence (AI).
According to Zacks, Coherent Corp. is positioned to capitalize on the growing investments in AI infrastructure and demand for optical connectivity. The company recently reported a significant 59% year-over-year revenue increase in its Datacenter and Communications segment for the fourth quarter of fiscal 2026, driven by high-speed optical networking solutions. Coherent plans to double its internal output capacity by the end of the first quarter of fiscal 2027, aiming for a revenue target of $3 billion by the end of fiscal 2027.
GigaCloud Technology, a player in the global B2B e-commerce space for large parcel merchandise, is experiencing rapid growth. The company’s revenue increased by 28% year over year in the second quarter of 2026, supported by a 23% organic growth rate. Its expansion in Europe has contributed to a 66% increase in gross merchandise value (GMV) year over year. GigaCloud currently maintains a strong balance sheet with no debt and has a share repurchase program in place, reflecting a commitment to shareholder returns.
ScanSource is also benefiting from rising demand for technology solutions, with its revenues growing by 17% and net income jumping 43% in the fourth quarter of fiscal 2026. The company attributes its success to the strong demand for physical security and cloud computing solutions. Its strategic acquisition of MicroAge aims to enhance its market presence in high-growth sectors including AI and cybersecurity.
The Zacks Technology Services industry currently holds a Zacks Industry Rank of #159, placing it in the bottom 36% of 247 Zacks industries. This rank indicates a muted near-term outlook, even as the technology services sector has underperformed the broader S&P 500 composite over the past year. The industry has declined by 19.9%, as opposed to the S&P 500’s 20.9% growth during the same period.
Looking ahead, Zacks anticipates the Technology Services industry will benefit from continued demand in software support, data processing, and connectivity solutions, which are crucial for both business and consumer markets. The current focus on technology solutions, coupled with the recovering economy, may create opportunities for sustainable growth within the sector.
