Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. IT Industry Analysis

UpdatedFeb 12, 2026
DataAggregated Company Financials
Companies124
  • 7D0.7%
  • 3M-10.0%
  • 1Y-14.7%
  • YTD-10.3%

The IT is pretty flat in the last 7 days, but Shopify has stood out, gaining 6.7%. As for the longer term, the industry has declined 15% in the last year. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 12 Feb 2026US$944.9bUS$255.2bUS$22.5b24.5x42.1x3.7x
Sat, 10 Jan 2026US$1.1tUS$282.8bUS$21.0b30.9x52.5x3.9x
Mon, 08 Dec 2025US$1.1tUS$282.1bUS$21.0b30.3x52x3.9x
Wed, 05 Nov 2025US$1.1tUS$280.0bUS$20.0b28.9x57x4.1x
Fri, 03 Oct 2025US$1.1tUS$283.4bUS$20.1b32.7x53.5x3.8x
Sun, 31 Aug 2025US$988.2bUS$250.9bUS$19.3b32.7x51.2x3.9x
Tue, 29 Jul 2025US$978.8bUS$242.9bUS$17.7b27.8x55.3x4x
Thu, 26 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.9x4.2x
Sat, 24 May 2025US$940.5bUS$240.2bUS$16.9b29x55.5x3.9x
Mon, 21 Apr 2025US$804.6bUS$242.4bUS$18.5b33.9x43.5x3.3x
Wed, 19 Mar 2025US$885.5bUS$240.0bUS$18.7b43.2x47.4x3.7x
Fri, 14 Feb 2025US$997.2bUS$234.9bUS$16.9b52x59x4.2x
Sun, 12 Jan 2025US$855.5bUS$234.0bUS$16.5b38.9x52x3.7x
Tue, 10 Dec 2024US$922.3bUS$233.2bUS$16.4b47x56.3x4x
Thu, 07 Nov 2024US$780.2bUS$233.2bUS$16.1b45.5x48.3x3.3x
Sat, 05 Oct 2024US$791.5bUS$232.9bUS$17.8b43.3x44.6x3.4x
Mon, 02 Sep 2024US$761.2bUS$233.3bUS$17.5b38.4x43.4x3.3x
Wed, 31 Jul 2024US$741.6bUS$237.1bUS$17.4b29.2x42.7x3.1x
Fri, 28 Jun 2024US$702.9bUS$237.1bUS$17.2b27.9x40.9x3x
Sun, 26 May 2024US$707.2bUS$237.0bUS$17.2b28.2x41x3x
Tue, 23 Apr 2024US$719.3bUS$227.7bUS$13.7b24x52.3x3.2x
Thu, 21 Mar 2024US$804.9bUS$227.7bUS$14.4b22.7x56x3.5x
Sat, 17 Feb 2024US$839.7bUS$227.5bUS$14.2b23.4x59.1x3.7x
Mon, 15 Jan 2024US$799.2bUS$229.4bUS$12.9b20.7x61.8x3.5x
Wed, 13 Dec 2023US$770.8bUS$229.0bUS$12.8b20.6x60.2x3.4x
Fri, 10 Nov 2023US$690.1bUS$228.4bUS$12.6b20.6x54.6x3x
Sun, 08 Oct 2023US$668.4bUS$227.2bUS$6.5b22.3x103.3x2.9x
Tue, 05 Sep 2023US$710.1bUS$226.6bUS$6.8b21.9x104.4x3.1x
Thu, 03 Aug 2023US$686.5bUS$226.7bUS$6.4b23.6x106.9x3x
Sat, 01 Jul 2023US$679.5bUS$228.6bUS$6.1b23.6x111.5x3x
Mon, 29 May 2023US$646.8bUS$229.3bUS$5.1b23.4x127.6x2.8x
Wed, 26 Apr 2023US$567.5bUS$225.6bUS$2.7b21.2x207.7x2.5x
Fri, 24 Mar 2023US$572.4bUS$225.0bUS$2.4b22.4x234.8x2.5x
Sun, 19 Feb 2023US$2.0tUS$461.4bUS$22.7b28.4x88.4x4.3x
Price to Earnings Ratio

88.4x


Total Market Cap: US$2.0tTotal Earnings: US$22.7bTotal Revenue: US$461.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.9x202420252026
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 42.1x which is lower than its 3-year average PE of 68.9x.
  • The industry is trading close to its 3-year average PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the IT industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 18% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

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

US Market1.43%
Tech4.94%
IT0.71%
Internet Services and Infrastructure9.25%
IT Consulting-5.67%
Data Processing Services-7.73%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.2x.
    • Analysts are expecting annual earnings growth of 15.2%, which is lower than the prior year's growth of 19.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 34% 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 8.5% 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
SHOP ShopifyUS$118.716.7%
+US$10.0b		-7.0%PE86.9x
NET CloudflareUS$189.4113.5%
+US$8.2b		9.6%PS33.1x
CRWV CoreWeaveUS$95.1515.4%
+US$6.6b		n/aPS11.5x
SNOW SnowflakeUS$178.838.2%
+US$4.6b		-4.5%PS14x
APLD Applied DigitalUS$36.6031.4%
+US$2.4b		362.7%PS38.8x

Latest News

VRSN
US$215.68
VeriSign
7D
-10.5%
1Y
-5.2%
ASGN
US$42.51
ASGN
7D
-20.2%
1Y
-45.0%
ACN
US$230.43
Accenture
7D
-4.6%
1Y
-40.7%
SHOP
US$118.71
Shopify
7D
6.7%
1Y
-7.0%
IBM
US$272.81
International Business Machines
7D
-5.6%
1Y
6.6%
NET
US$189.41
Cloudflare
7D
13.5%
1Y
9.6%
KD
US$12.12
Kyndryl Holdings
7D
-48.2%
1Y
-70.5%

KD: Agentic AI And Acquisitions Will Drive Future Upside

Analysts have reduced their fair value target for Kyndryl Holdings to about $25.33 from roughly $37.60. This reflects revised assumptions for slower revenue growth, a slightly higher discount rate, a modestly stronger profit margin, and a lower future P/E multiple.
GDS
US$46.48
GDS Holdings
7D
12.7%
1Y
35.0%
CTSH
US$70.91
Cognizant Technology Solutions
7D
-7.6%
1Y
-19.5%
SNOW
US$178.83
Snowflake
7D
8.2%
1Y
-4.5%

SNOW: OpenAI Partnership And AI Demand Will Drive Future Platform Adoption

Narrative Update: Snowflake Analysts have lifted their fair value estimate for Snowflake to US$366.83 from US$334.94. This reflects updated assumptions for slightly lower revenue growth, a modestly reduced discount rate, a higher future P/E multiple, and increased AI consumption potential tied to Snowflake's new US$200m partnership with OpenAI and broader AI focused research commentary.
VNET
US$13.54
VNET Group
7D
31.8%
1Y
19.7%

VNET: Higher 2025 Guidance Will Likely Not Justify Rich Earnings Multiple

Analysts have lifted their price target for VNET Group to US$6.51 from US$5.74, reflecting updated assumptions that combine a slightly higher discount rate, lower projected revenue growth, improved profit margins, and a reduced future P/E of about 29x compared with roughly 98x previously. What's in the News VNET Group raised its earnings guidance for the full year 2025, signaling updated expectations for its financial performance.
WIX
US$72.10
Wix.com
7D
-9.1%
1Y
-68.8%

Wix.com Ltd. (NASDAQ:WIX) Shares Slammed 25% But Getting In Cheap Might Be Difficult Regardless

Feb 06
Wix.com Ltd. (NASDAQ:WIX) Shares Slammed 25% But Getting In Cheap Might Be Difficult Regardless
CRWV
US$95.15
CoreWeave
7D
15.4%
1Y
n/a
GDDY
US$90.70
GoDaddy
7D
-5.2%
1Y
-56.3%
APLD
US$36.60
Applied Digital
7D
31.4%
1Y
362.7%

APLD: Long-Term Hyperscale Leases And Power Access Will Support Future AI Demand

Analysts have lifted their price target for Applied Digital by about US$1.57, citing stronger expected revenue growth, updated discount rate assumptions, and higher implied future P/E multiples, tempered by more conservative profit margin expectations and increased confidence in hyperscaler leasing momentum and AI infrastructure demand. Analyst Commentary Recent Street research on Applied Digital has been broadly constructive, with multiple firms updating price targets and initiating coverage around the company’s AI focused data center and hyperscaler leasing story.
MDB
US$364.46
MongoDB
7D
8.0%
1Y
24.6%

MDB: AI Workloads And Cloud Recurring Revenue Will Support Future Leadership Transition

Our updated fair value estimate for MongoDB moves to $525 from $550, as analysts factor in expectations for higher long term revenue growth, a richer future P/E multiple, and a lower discount rate, partially offset by more conservative profit margin assumptions. Analyst Commentary Recent Street research has generally tilted positive on MongoDB, with a series of higher price targets and reaffirmed positive ratings.