Information Tech Stocks Delivering Solid ROA and Free Cash Flow Growth

This First Cut lists information technology companies that are likely to generate positive returns on their capital investments and have the resilience to service new debt.

Investors have grown increasingly concerned about the sustainability of artificial intelligence (AI) spending, as large information technology companies commit significant capital to data centers, related infrastructure and AI capability. This cohort has traditionally not carried debt but is becoming a meaningful part of the investment-grade bond universe. Technology companies issued a record $108.7 billion in bonds in the fourth quarter of 2025, according to Moody’s Analytics.