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U.S. IT Industry Analysis

UpdatedMar 22, 2026
DataAggregated Company Financials
Companies120
  • 7D-1.6%
  • 3M-21.2%
  • 1Y-4.9%
  • YTD-17.1%

Over the last 7 days, the IT industry has dropped 1.6%, driven by a pullback from Shopify of 5.0%. The industry has fallen 4.9% in the last year. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

Has the U.S. IT Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 22 Mar 2026US$849.6bUS$259.6bUS$21.6b19.4x39.4x3.3x
Tue, 17 Feb 2026US$900.7bUS$256.5bUS$21.7b23.2x41.5x3.5x
Thu, 15 Jan 2026US$1.1tUS$252.7bUS$19.8b29.8x53.7x4.2x
Sat, 13 Dec 2025US$1.1tUS$282.0bUS$21.0b29.9x52.7x3.9x
Mon, 10 Nov 2025US$1.1tUS$280.3bUS$20.2b31.1x53.9x3.9x
Wed, 08 Oct 2025US$1.1tUS$282.4bUS$20.1b32.7x55.4x3.9x
Fri, 05 Sep 2025US$969.0bUS$250.9bUS$19.3b29.2x50.2x3.9x
Sun, 03 Aug 2025US$920.8bUS$243.5bUS$17.8b26.5x51.6x3.8x
Tue, 01 Jul 2025US$1.0tUS$241.7bUS$17.4b29.2x58.5x4.2x
Thu, 29 May 2025US$958.4bUS$240.3bUS$17.0b29x56.2x4x
Sat, 26 Apr 2025US$833.3bUS$242.4bUS$18.0b35x46.4x3.4x
Mon, 24 Mar 2025US$868.0bUS$240.8bUS$19.2b44.7x45.1x3.6x
Wed, 19 Feb 2025US$1.0tUS$239.4bUS$18.2b43.7x57x4.3x
Fri, 17 Jan 2025US$862.4bUS$234.1bUS$16.3b41.5x52.8x3.7x
Sun, 15 Dec 2024US$894.9bUS$233.2bUS$16.4b45.5x54.6x3.8x
Tue, 12 Nov 2024US$816.7bUS$233.2bUS$16.1b46.6x50.6x3.5x
Thu, 10 Oct 2024US$806.1bUS$232.8bUS$17.8b44.1x45.4x3.5x
Sat, 07 Sep 2024US$739.3bUS$233.3bUS$17.5b35.4x42.1x3.2x
Mon, 05 Aug 2024US$703.2bUS$232.5bUS$16.1b28.6x43.6x3x
Wed, 03 Jul 2024US$712.9bUS$237.0bUS$17.2b29.9x41.5x3x
Fri, 31 May 2024US$676.5bUS$237.1bUS$17.3b27.8x39.1x2.9x
Sun, 28 Apr 2024US$712.8bUS$228.0bUS$14.4b25.1x49.6x3.1x
Tue, 26 Mar 2024US$776.8bUS$227.6bUS$14.6b22.3x53.3x3.4x
Thu, 22 Feb 2024US$811.4bUS$227.5bUS$14.2b22.4x57.1x3.6x
Sat, 20 Jan 2024US$800.1bUS$229.4bUS$12.9b21.4x61.8x3.5x
Mon, 18 Dec 2023US$786.3bUS$229.0bUS$12.8b20.3x61.4x3.4x
Wed, 15 Nov 2023US$688.6bUS$228.4bUS$12.6b21.2x54.5x3x
Fri, 13 Oct 2023US$676.3bUS$227.2bUS$6.5b20.2x104.5x3x
Sun, 10 Sep 2023US$704.4bUS$226.6bUS$6.8b23.2x103.5x3.1x
Tue, 08 Aug 2023US$684.7bUS$226.3bUS$6.4b23.7x106.7x3x
Thu, 06 Jul 2023US$679.6bUS$228.6bUS$6.1b23.8x111.5x3x
Sat, 03 Jun 2023US$673.6bUS$228.3bUS$5.9b23.9x113.8x3x
Mon, 01 May 2023US$581.7bUS$225.4bUS$3.2b21.3x182.2x2.6x
Wed, 29 Mar 2023US$577.0bUS$225.7bUS$2.3b22.9x247.4x2.6x
Price to Earnings Ratio

247.4x


Total Market Cap: US$577.0bTotal Earnings: US$2.3bTotal Revenue: US$225.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 67.1x202420252026
Current Industry PE
  • Investors are pessimistic on the American IT industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 39.4x which is lower than its 3-year average PE of 67.1x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 110% per year over the last three years.
  • Revenues for these companies have grown 4.8% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market-1.83%
Tech-1.68%
IT-1.58%
IT Consulting-0.53%
Data Processing Services-1.05%
Internet Services and Infrastructure-2.60%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.3x.
    • Analysts are expecting annual earnings growth of 13.4%, which is lower than the prior year's growth of 26.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.4% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
ACN AccentureUS$199.991.7%
+US$1.8b		-34.5%PE16.1x
DOCN DigitalOcean HoldingsUS$82.6520.4%
+US$1.3b		124.0%PE29.3x
NET CloudflareUS$215.421.4%
+US$1.0b		80.7%PS35x
CTSH Cognizant Technology SolutionsUS$62.072.8%
+US$813.0m		-18.8%PE13.3x
GDDY GoDaddyUS$84.894.5%
+US$489.4m		-52.9%PE12.9x

Latest News

ACN
US$199.99
Accenture
7D
1.7%
1Y
-34.5%
BBAI
US$3.58
BigBear.ai Holdings
7D
-9.1%
1Y
20.5%

BBAI: Federal Contract Recovery Will Test Revenue Guidance And Balance Sheet Progress

Narrative Update on BigBear.ai Holdings The analyst price target for BigBear.ai has been lowered by $1, as analysts factor in reduced sales estimates, ongoing contract related revenue headwinds and execution risk, while also acknowledging balance sheet improvements and the planned revenue contribution from the Ask Sage acquisition. Analyst Commentary Recent Street research reflects a mixed setup for BigBear.ai, with analysts trimming price targets and highlighting contract related pressure, while still pointing to specific areas that could support valuation over time.
VNET
US$8.82
VNET Group
7D
-16.1%
1Y
1.3%
SNOW
US$168.02
Snowflake
7D
-6.0%
1Y
6.1%

Burning Paper, Printing Cash: How a $300M Loss Is Hiding Success

The latest financial data for the fourth quarter of 2026 shows a company that is growing fast and holding a lot of cash. While spending remains high, the business is seeing a significant increase in money coming in from customers.
NET
US$215.42
Cloudflare
7D
1.4%
1Y
80.7%

NET: AI Infrastructure Momentum And Security Partnerships Will Shape Balanced Outlook

Cloudflare's updated analyst price target edges higher to about $232, as analysts balance a series of recent target cuts and upgrades with views that the recent sector selloff tied to Claude Code Security appears disconnected from the core cybersecurity businesses they cover. Analyst Commentary Recent research on Cloudflare reflects a split tape, with several firms cutting price targets while others issue upgrades or modest target increases.
APLD
US$25.93
Applied Digital
7D
-4.1%
1Y
266.8%
CTSH
US$62.07
Cognizant Technology Solutions
7D
2.8%
1Y
-18.8%
DOCN
US$82.65
DigitalOcean Holdings
7D
20.4%
1Y
124.0%

DOCN: AI Capacity Hype Will Likely Outrun Execution And Utilization

The analyst fair value estimate for DigitalOcean has increased from $32.00 to $57.00. This reflects higher Street price targets tied to stronger AI related growth expectations, updated long term revenue outlooks, and a higher assumed future P/E multiple, even as some firms maintain more cautious ratings.
IBM
US$241.77
International Business Machines
7D
-1.8%
1Y
-0.9%

IBM: Hybrid Cloud And AI Execution Will Drive Repricing Potential

Analysts have kept the average price target for International Business Machines steady at $390.00. Recent research points to a more balanced risk/reward profile, as AI related competitive concerns around the Z mainframe platform and slower expectations for mainframe and consulting growth are weighed against ongoing interest in IBM's hybrid cloud, AI, automation and data offerings.
AKAM
US$110.48
Akamai Technologies
7D
2.6%
1Y
36.3%

AKAM: Heavy AI And Compute Spending Will Pressure Margins And Share Returns

Akamai’s updated analyst price target framework edges higher as modestly adjusted assumptions on fair value, growth, margins and future P/E reflect analysts’ focus on stabilizing delivery trends, rising contributions from security and compute, and sector-wide AI optimism, despite mixed views on near term investment and profitability. Analyst Commentary Recent Street research on Akamai highlights a split view.
SHOP
US$116.78
Shopify
7D
-5.0%
1Y
12.1%

SHOP: Agentic Commerce Optimism Will Face Test As Expectations Stay Elevated

Shopify's analyst fair value estimate has been modestly adjusted from $111.12 to $110.00 as analysts factor in updated assumptions around discount rates, revenue growth, profit margins, and a slightly lower future P/E. Recent research highlights both rising price targets from bulls focused on AI and agentic commerce potential, and reductions from others citing valuation reset and sector multiple compression.
GDDY
US$84.89
GoDaddy
7D
4.5%
1Y
-52.9%

GDDY: AI Agent Identity Push Will Face Execution And Competitive Tests

Narrative Update Analysts have shifted GoDaddy's implied fair value from $130 to $77, pointing to lower price targets tied to softer bookings trends, more modest revenue growth assumptions, and a reduced future P/E multiple, even as margin expectations edge higher on AI driven efficiencies and product mix. Analyst Commentary Recent Street research on GoDaddy clusters around a reset in expectations, with multiple bearish analysts trimming price targets and flagging execution risks around the newer go to market approach and AI related competitive pressures.
GDS
US$41.38
GDS Holdings
7D
-3.5%
1Y
49.5%
VRSN
US$240.78
VeriSign
7D
0.9%
1Y
-1.5%

VRSN: Steady .Com Base And Buybacks Will Support Future Cash Returns

Analysts have trimmed their average price target on VeriSign by $57, citing updated models that reflect a slightly higher discount rate and P/E assumption, even as they acknowledge steady. com domain trends and fairly valued shares.
CRWV
US$81.47
CoreWeave
7D
0.4%
1Y
n/a
IT
US$161.41
Gartner
7D
-3.2%
1Y
-62.5%