US Stocks continue their recovery from a post-DeepSeek and post-tariffs period as nerves surrounding Donald Trump’s unpredictable policies calm down. The Nasdaq is surging 1.19% followed by the S&P 500 at 0.64%. The bullishness is expected to continue for the remainder of the day.
To determine which stocks could outperform the market in the coming months, it is essential to look at sectors that are benefitting from ongoing trends. IT stocks are unique in a way that with time, all companies have to spend more to keep their systems updated. Analysts expect companies to add 5% to their IT budgets in 2025. This, together with the increasing demand for AI products, will propel the sector’s returns in 2025.
Some companies have already started the year on a positive note. There are companies that are seeing increasing demand for their innovative products while others continue to serve the infrastructure involved in deploying these innovative solutions. Either way, it is important to look at what’s driving these stocks.
We decided to take a look at the top 10 mid-cap IT stocks that are outperforming the market in 2025. To come up with our list, we only considered stocks with a market cap of at least $10 billion with the highest return since the start of the year.
10. EPAM Systems Inc. (NYSE:EPAM)
EPAM Systems Inc. is a global software development and digital platform engineering services provider. It offers infrastructure management services, engineering services, smart automation services, technical advisory consulting services, and other services. The stock is up 11% this year on the back of strong earnings, improving financial strength, and collaborations.
The company comfortably beat analyst estimates by reporting an EPS of $3.12 against estimates of $2.7. Revenues also came in stronger than expected. Investors will be pleased to see the company register topline growth as the recent downturn in revenue was starting to worry them.
As a result of the impressive earnings, the company continues to see improving cash flows. During the first three quarters, the company already generated $429 in cash, significantly boosting its cash pile which stood at $2.04 billion. The improving cash flows set the company up for share buybacks as well as any acquisitions that it may deem fit for business growth.
Just last month, the company announced an expansion of its existing collaboration with Google Cloud. While this enhancement won’t impact the upcoming Q4 results on the 20th of February, it should help the company continue on its growth trajectory.
9. Cognizant Technology Solutions Corporation (NASDAQ:CTSH)
Cognizant Technology Solutions Corporation is an outsourcing and technology & consulting services provider firm. The company operates through products & resources; financial services; communications, media & technology; and health sciences segments. The stock is up 12% this year supported by the strong financial results of Q4.
The company managed to beat analyst estimates by surpassing the expected EPS by $0.08. The revenue generated also exceeded estimates by $10 million with a 6.7% growth YoY. The revenue surge came as a result of an 11% YoY increase in bookings in Q4. Moreover, the company entered into 10 large deals (worth more than $100 million or more) during the quarter.
Based on Q4 results, guidance for the full year 2025 indicates a growth rate of 2.6 – 5.1%, while operating margins are predicted to improve from 15.5% to 15.7%. On another positive note, the company extended its strategic partnership with McDonald’s (MCD) recently. As per the agreement, the primary focus is to utilize technology to enhance MCD’s operational efficiency and customer satisfaction. CTSH also declared a strategic partnership with CrowdStrike (CRWD) last month to enhance the safety and security of corporate giants across industries.
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