Sector Report5 min read
Technology: 22 A-Grades, Half Are Declining
Tech has the best grades and the worst trends. Twenty-two A-grades can't hide what's happening underneath.
Aug 21, 2026
NVDAMSFTAAPLORCL+12
Technology companies including software, hardware, semiconductors, and cloud services
Sector classifications follow the GICS industry standard.
Companies ranked by free cash flow margin
Health grades across the sector
| # | Symbol | Grade | FCF Margin |
|---|---|---|---|
| 1 | NVDA | A | 41.8% |
| 2 | ADI | A | 35.9% |
| 3 | ADBE | A | 33.3% |
| 4 | PLTR | A | 31.7% |
| 5 | AVGO | A | 30.3% |
| 6 | VEEV | A | 29.5% |
| 7 | FTNT | A | 28.6% |
| 8 | KLAC | A | 28.6% |
| 9 | LRCX | A | 27.5% |
| 10 | CRM | A | 26.2% |
| 11 | ZM | A | 23.9% |
| 12 | PANW | A | 23.6% |
| 13 | QCOM | A | 22.7% |
| 14 | CDNS | A | 21.4% |
| 15 | AAPL | A | 20.6% |
| 16 | NOW | A | 19.4% |
| 17 | AMAT | A | 17.7% |
| 18 | CSCO | C | 17.0% |
| 19 | MSFT | B | 16.4% |
| 20 | NXPI | A | 14.8% |
| 21 | AMD | A | 14.7% |
| 22 | IBM | C | 14.4% |
| 23 | SHOP | A | 13.5% |
| 24 | ACN | A | 12.6% |
| 25 | TXN | B | 12.4% |
| 26 | WDAY | B | 12.0% |
| 27 | OKTA | A | 10.9% |
| 28 | MRVL | C | 9.8% |
| 29 | SNPS | F | 6.5% |
| 30 | DDOG | F | 4.8% |
| 31 | CRWD | F | 3.0% |
| 32 | ZS | F | 2.4% |
| 33 | MU | F | 1.9% |
| 34 | TEAM | F | 1.0% |
| 35 | NET | D | -8.8% |
| 36 | SNOW | F | -10.3% |
| 37 | INTC | F | -14.0% |
| 38 | ORCL | F | -42.3% |
Tech has the best grades and the worst trends. Twenty-two A-grades can't hide what's happening underneath.
Tech sector looks healthy on the surface. Dig into the trend data and half the A-grades are going the wrong direction.
Tech sector prints 15.9% median FCF margin with the best grade distribution we track. But 12 of 38 companies are moving the wrong direction.