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U.S. IT Industry Analysis

UpdatedDec 11, 2025
DataAggregated Company Financials
Companies121
  • 7D2.3%
  • 3M10.2%
  • 1Y14.2%
  • YTD22.2%

In the last week, the IT industry is up 2.3%, with International Business Machines leading the way, up 3.3%. Meanwhile, Snowflake actually underperformed within the industry, shrinking 7.8% in the last week. In the last 12 months, the industry was up 14%. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 11 Dec 2025US$1.1tUS$282.0bUS$21.0b31.1x52.9x3.9x
Sat, 08 Nov 2025US$1.1tUS$280.3bUS$20.2b31.2x53.8x3.9x
Mon, 06 Oct 2025US$1.1tUS$283.3bUS$20.1b33.2x54.5x3.9x
Wed, 03 Sep 2025US$988.2bUS$250.9bUS$19.3b32.5x51.2x3.9x
Fri, 01 Aug 2025US$960.1bUS$243.2bUS$17.9b26.9x53.8x3.9x
Sun, 29 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.3x4.2x
Tue, 27 May 2025US$930.5bUS$240.2bUS$16.9b29x54.9x3.9x
Thu, 24 Apr 2025US$815.9bUS$242.4bUS$18.5b34.3x44.1x3.4x
Sat, 22 Mar 2025US$859.7bUS$240.8bUS$19.2b44.7x44.7x3.6x
Mon, 17 Feb 2025US$1.0tUS$239.4bUS$18.2b44.8x57x4.3x
Wed, 15 Jan 2025US$851.6bUS$234.0bUS$16.5b39x51.7x3.6x
Fri, 13 Dec 2024US$908.0bUS$233.2bUS$16.4b44.6x55.4x3.9x
Sun, 10 Nov 2024US$816.6bUS$233.2bUS$16.1b46.9x50.6x3.5x
Tue, 08 Oct 2024US$806.1bUS$232.9bUS$17.8b42.7x45.4x3.5x
Thu, 05 Sep 2024US$749.7bUS$233.2bUS$17.5b38.8x42.7x3.2x
Sat, 03 Aug 2024US$714.8bUS$232.5bUS$16.1b28.6x44.3x3.1x
Mon, 01 Jul 2024US$710.2bUS$237.1bUS$17.2b27.9x41.3x3x
Wed, 29 May 2024US$707.2bUS$237.0bUS$17.2b26.9x41x3x
Fri, 26 Apr 2024US$710.4bUS$228.0bUS$14.4b22.8x49.4x3.1x
Sun, 24 Mar 2024US$776.8bUS$227.6bUS$14.6b22.3x53.3x3.4x
Tue, 20 Feb 2024US$831.3bUS$227.5bUS$14.2b23.4x58.5x3.7x
Thu, 18 Jan 2024US$791.2bUS$229.4bUS$12.9b21.1x61.1x3.4x
Sat, 16 Dec 2023US$786.3bUS$229.0bUS$12.8b20.3x61.4x3.4x
Mon, 13 Nov 2023US$691.3bUS$228.4bUS$12.6b20.5x54.7x3x
Wed, 11 Oct 2023US$674.9bUS$227.2bUS$6.5b22.7x104.3x3x
Fri, 08 Sep 2023US$706.7bUS$226.6bUS$6.8b23.2x103.9x3.1x
Sun, 06 Aug 2023US$680.8bUS$226.3bUS$6.4b24x106.1x3x
Tue, 04 Jul 2023US$682.3bUS$228.6bUS$6.1b23.7x112x3x
Thu, 01 Jun 2023US$655.9bUS$228.0bUS$5.8b22.7x114x2.9x
Sat, 29 Apr 2023US$581.8bUS$225.7bUS$2.7b21.7x212.8x2.6x
Mon, 27 Mar 2023US$572.2bUS$225.5bUS$2.3b22.6x245x2.5x
Wed, 22 Feb 2023US$2.0tUS$462.1bUS$22.5b27.2x87.3x4.2x
Fri, 20 Jan 2023US$2.0tUS$458.0bUS$39.2b28.1x50.1x4.3x
Sun, 18 Dec 2022US$1.9tUS$456.9bUS$39.0b27.6x48.1x4.1x
Price to Earnings Ratio

48.1x


Total Market Cap: US$1.9tTotal Earnings: US$39.0bTotal Revenue: US$456.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.8x202320242025
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 52.9x which is lower than its 3-year average PE of 68.8x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 3.9x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 19% per year over the last three years,
  • Revenues have also declined 15% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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

US Market0.42%
Tech1.52%
IT2.25%
Internet Services and Infrastructure2.75%
IT Consulting1.81%
Data Processing Services-0.77%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 31.2x.
    • Analysts are expecting annual earnings growth of 9.8%, which is lower than the prior year's growth of 12.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings growth rate of 24% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 9.8% 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
IBM International Business MachinesUS$312.673.3%
+US$9.4b		35.9%PE36.9x
SHOP ShopifyUS$168.423.8%
+US$8.0b		46.1%PE123.1x
CRWV CoreWeaveUS$88.1611.1%
+US$4.4b		n/aPS10.2x
NET CloudflareUS$213.464.6%
+US$3.3b		85.8%PS37.1x
CTSH Cognizant Technology SolutionsUS$83.225.0%
+US$1.9b		2.4%PE18.9x

Latest News

OKTA
US$89.84
Okta
7D
4.6%
1Y
7.1%

Solid Earnings Reflect Okta's (NASDAQ:OKTA) Strength As A Business

Dec 10
Solid Earnings Reflect Okta's (NASDAQ:OKTA) Strength As A Business
CRWV
US$88.16
CoreWeave
7D
11.1%
1Y
n/a
IT
US$230.88
Gartner
7D
-0.4%
1Y
-55.5%

IT: Expanded Buybacks Will Drive Future Upside Despite Modest Growth Reset

Narrative Update on Gartner Analysts have modestly raised their price target on Gartner by a few dollars per share, reflecting slightly higher long term profit margin expectations and a marginally richer forward earnings multiple, despite a small trim to projected revenue growth and a slightly higher discount rate. What's in the News Completed a major share repurchase tranche in Q3 2025, buying back 3.95 million shares for about $1.05 billion and bringing total repurchases under the long standing program to 23.9 million shares, or 28.83% of shares outstanding, for $5.83 billion (Key Developments) Raised full year 2025 guidance for consolidated revenue to at least $6.475 billion, reflecting FX neutral growth of about 3%, with higher expected revenue across Insights and Conferences, and stable growth in Consulting (Key Developments) Recorded Q3 2025 impairment charges including $4 million of lease related asset impairments and a $150 million goodwill impairment, up from $2 million of lease related impairments a year earlier (Key Developments) Expanded its share repurchase authorization by an additional $1.0 billion on September 10, 2025, lifting the total program size to $7.0 billion (Key Developments) Valuation Changes Fair Value: Unchanged at $284.27 per share, indicating no revision to the intrinsic value estimate.
IBM
US$312.67
International Business Machines
7D
3.3%
1Y
35.9%
NET
US$213.46
Cloudflare
7D
4.6%
1Y
85.8%
SHOP
US$168.42
Shopify
7D
3.8%
1Y
46.1%
VRSN
US$242.32
VeriSign
7D
-3.0%
1Y
21.2%

VRSN: Strong Q3 Execution Will Drive Confidence Despite Parked Domain Risks

Analysts have modestly trimmed their price target on VeriSign to $325 from $340, reflecting slightly higher discount rate assumptions. They also highlight resilient fundamentals, clearer visibility into AdSense exposure, and Q3 results that counter recent bearish narratives and support the shares as an attractive entry point.
GDDY
US$128.30
GoDaddy
7D
-1.5%
1Y
-38.6%
FSLY
US$10.54
Fastly
7D
-8.5%
1Y
-0.6%

FSLY: Future Returns Will Depend On Proving Security Gains Amid CDN Pressure

Analysts have modestly trimmed their price target on Fastly to approximately $46.07 from about $48.63, citing the need for recent security segment momentum to prove durable amid ongoing pricing pressure in the core CDN business. Analyst Commentary Recent commentary highlights a balanced view on Fastly, with analysts recognizing progress in execution while remaining cautious on the durability of recent gains and the challenges in its legacy business.
SNOW
US$216.55
Snowflake
7D
-7.8%
1Y
27.4%
MDB
US$427.41
MongoDB
7D
5.3%
1Y
43.8%

MDB: Leadership Change And AI Adoption Will Shape Durable Platform Positioning

The Analyst Price Target for MongoDB has increased by approximately $58 to about $428, as analysts highlight improving profitability, rising confidence in durable Atlas-driven growth and AI adoption, and strengthened leadership positioning as key supports for higher long-term valuation multiples. Analyst Commentary Recent research notes reflect a broadly constructive view on MongoDB, with most price targets moving higher as analysts point to strengthening fundamentals, expanding AI opportunities, and improving visibility into long term growth and profitability.
AKAM
US$86.45
Akamai Technologies
7D
-1.7%
1Y
-13.6%
ACN
US$272.22
Accenture
7D
-0.2%
1Y
-25.2%
TWLO
US$134.97
Twilio
7D
7.8%
1Y
17.4%

TWLO: Future Performance Will Reflect Rising Confidence in Voice AI Momentum

Analysts have raised their price target for Twilio by $5 to $145, citing improving company performance, positive AI infrastructure tailwinds, and growing confidence in Twilio's ability to sustain profitable growth. Analyst Commentary Recent research updates reflect predominantly constructive sentiment toward Twilio, emphasizing improvements in performance, valuation, and prospects for growth.
CTSH
US$83.22
Cognizant Technology Solutions
7D
5.0%
1Y
2.4%

CTSH: Expanding Deal Pipeline And AI Focus Will Offset Sector Risks Ahead

The analyst consensus price target for Cognizant Technology Solutions has been reduced by $0.17 to $84.70. Analysts cite ongoing solid performance and momentum in key growth verticals, but also acknowledge continued variability in bookings and competitive pressures impacting near-term projections.
CHOW
US$1.83
ChowChow Cloud International Holdings
7D
-81.3%
1Y
n/a