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U.S. IT Industry Analysis

UpdatedAug 31, 2025
DataAggregated Company Financials
Companies109
  • 7D3.4%
  • 3M-0.8%
  • 1Y18.3%
  • YTD7.9%

Over the last 7 days, the IT industry has risen 3.4%, driven by gains from Snowflake of 21%. In the last 12 months, the industry was up 18%. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 01 Sep 2025US$988.2bUS$250.9bUS$19.3b32.7x51.2x3.9x
Wed, 30 Jul 2025US$977.0bUS$242.9bUS$17.7b26.8x55.2x4x
Fri, 27 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.1x4.2x
Sun, 25 May 2025US$930.5bUS$240.2bUS$16.9b29x54.9x3.9x
Tue, 22 Apr 2025US$804.6bUS$242.4bUS$18.5b32.3x43.5x3.3x
Thu, 20 Mar 2025US$872.0bUS$240.0bUS$19.1b44.8x45.6x3.6x
Sat, 15 Feb 2025US$1.0tUS$239.6bUS$18.2b44.8x57.5x4.4x
Mon, 13 Jan 2025US$855.5bUS$234.0bUS$16.5b38.9x52x3.7x
Wed, 11 Dec 2024US$907.6bUS$233.2bUS$16.4b45.9x55.5x3.9x
Fri, 08 Nov 2024US$806.4bUS$233.0bUS$16.3b46x49.6x3.5x
Sun, 06 Oct 2024US$806.1bUS$232.9bUS$17.8b43.3x45.4x3.5x
Tue, 03 Sep 2024US$761.2bUS$233.2bUS$17.5b38.3x43.4x3.3x
Thu, 01 Aug 2024US$751.2bUS$237.2bUS$17.4b29.7x43.1x3.2x
Sat, 29 Jun 2024US$706.4bUS$237.1bUS$17.2b27.9x41.1x3x
Mon, 27 May 2024US$707.2bUS$237.0bUS$17.2b28.2x41x3x
Wed, 24 Apr 2024US$734.3bUS$227.8bUS$13.7b24.2x53.4x3.2x
Fri, 22 Mar 2024US$816.2bUS$227.7bUS$14.6b22.5x56.1x3.6x
Sun, 18 Feb 2024US$831.3bUS$227.5bUS$14.2b23.4x58.5x3.7x
Tue, 16 Jan 2024US$799.2bUS$229.4bUS$12.9b20.7x61.8x3.5x
Thu, 14 Dec 2023US$770.8bUS$229.0bUS$12.8b21x60.2x3.4x
Sat, 11 Nov 2023US$679.6bUS$228.4bUS$12.6b20.9x53.8x3x
Mon, 09 Oct 2023US$668.4bUS$227.2bUS$6.5b22.3x103.3x2.9x
Wed, 06 Sep 2023US$709.1bUS$226.6bUS$6.8b22.3x104.2x3.1x
Fri, 04 Aug 2023US$682.9bUS$226.9bUS$6.3b23.3x109x3x
Sun, 02 Jul 2023US$679.5bUS$228.6bUS$6.1b23.6x111.5x3x
Tue, 30 May 2023US$646.8bUS$228.0bUS$5.8b23.4x112.5x2.8x
Thu, 27 Apr 2023US$573.5bUS$165.0bUS$2.7b20.9x209.9x3.5x
Sat, 25 Mar 2023US$572.3bUS$225.7bUS$2.3b22.6x245.5x2.5x
Mon, 20 Feb 2023US$2.0tUS$462.1bUS$22.5b28.4x89.1x4.3x
Wed, 18 Jan 2023US$2.0tUS$458.1bUS$39.2b28.9x51.4x4.4x
Fri, 16 Dec 2022US$1.9tUS$456.9bUS$39.0b27.6x48.6x4.1x
Sun, 13 Nov 2022US$1.9tUS$455.9bUS$37.9b28.6x51.4x4.3x
Tue, 11 Oct 2022US$1.8tUS$449.5bUS$41.7b26.1x42.7x4x
Thu, 08 Sep 2022US$1.9tUS$446.7bUS$41.5b27.9x46.8x4.3x
Price to Earnings Ratio

46.8x


Total Market Cap: US$1.9tTotal Earnings: US$41.5bTotal Revenue: US$446.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.4x202320242025
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 51.2x which is lower than its 3-year average PE of 68.4x.
  • 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 22% per year over the last three years,
  • Revenues have also declined 17% 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 Market0.0096%
Tech0.099%
IT3.38%
Internet Services and Infrastructure6.46%
IT Consulting0.39%
Data Processing Services-1.33%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 27.0%, which is higher than its past year's earnings growth of 9.7% per year.
  • Investors are most pessimistic about the IT Consulting industry, which is trading below its 3-year average of 31.8x.
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 better than its past earnings growth rate of 9.7% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 10% 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
SNOW SnowflakeUS$238.6621.3%
+US$14.0b		108.9%PS19.3x
MDB MongoDBUS$315.6144.1%
+US$7.8b		8.5%PS11.6x
CRWV CoreWeaveUS$103.049.6%
+US$4.7b		n/aPS15.2x
NET CloudflareUS$208.716.4%
+US$4.4b		154.1%PS38.7x
IBM International Business MachinesUS$243.490.6%
+US$1.3b		20.5%PE38.7x

Latest News

TSSI
US$13.93
TSS
7D
-9.6%
1Y
190.7%
GLOB
US$67.26
Globant
7D
-3.8%
1Y
-66.7%

Enterprise AI And Cloud Migration Will Shape Future Markets

Globant’s consensus price target was trimmed from $109.45 to $106.45 as analysts cite macroeconomic uncertainty, slower client decision-making, reduced fiscal 2025 guidance, and ongoing sector headwinds, partially offset by continued margin strength and long-term AI opportunities. Analyst Commentary Macroeconomic uncertainty and delayed client decision-making are negatively impacting near-term revenue expectations and growth visibility.
MDB
US$315.61
MongoDB
7D
44.1%
1Y
8.5%

Revenues Not Telling The Story For MongoDB, Inc. (NASDAQ:MDB) After Shares Rise 32%

Aug 29
Revenues Not Telling The Story For MongoDB, Inc. (NASDAQ:MDB) After Shares Rise 32%
SNOW
US$238.66
Snowflake
7D
21.3%
1Y
108.9%

AI Initiatives Like Cortex AI And Microsoft Partnerships Will Improve Future Market Position

Snowflake’s consensus price target has increased to $259.43 as analysts cite accelerating product revenue growth, expanding AI-driven innovation, and stronger enterprise adoption, reflecting heightened confidence in its long-term growth outlook. Analyst Commentary Broad-based acceleration in product revenue growth exceeding guidance, with Q2 product revenue up 32% year-over-year, driven by strong execution across all core pillars: analytics, data engineering, AI applications, and collaboration.
ACN
US$259.97
Accenture
7D
0.3%
1Y
-24.0%
CTSH
US$72.25
Cognizant Technology Solutions
7D
-0.2%
1Y
-7.1%

AI-driven Consulting And Transformation Will Open Financial And Health Opportunities

Analysts have modestly reduced their price target for Cognizant Technology Solutions from $87.63 to $86.63, citing sector underperformance, over-optimism, and macroeconomic uncertainty driving a more cautious, neutral outlook. Analyst Commentary Analysts note that the payments, processors, and IT services industries have materially underperformed the S&P 500 Index year-to-date due to elevated investor expectations ahead of the U.S. November election.
SHOP
US$141.28
Shopify
7D
-0.6%
1Y
90.7%

International Expansion And AI Integration Will Open New Global Markets

Shopify’s consensus price target was slightly raised to $161.11 as analysts highlighted exceptional Q2 results, accelerating revenue and GMV growth, and expanding international and enterprise momentum, although some caution remains on valuation. Analyst Commentary Bullish analysts cite exceptional Q2 results, highlighted by accelerating gross merchandise volume growth and revenue growth above 30% despite difficult macroeconomic conditions.
TWLO
US$105.61
Twilio
7D
-0.7%
1Y
68.3%
NET
US$208.71
Cloudflare
7D
6.4%
1Y
154.1%
UBXG
US$2.57
U-BX Technology
7D
-31.8%
1Y
-88.5%
CRWV
US$103.04
CoreWeave
7D
9.6%
1Y
n/a
IBM
US$243.49
International Business Machines
7D
0.6%
1Y
20.5%

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Aug 20
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BBAI
US$5.07
BigBear.ai Holdings
7D
-7.8%
1Y
218.9%

Risks Still Elevated At These Prices As BigBear.ai Holdings, Inc. (NYSE:BBAI) Shares Dive 26%

Aug 19
Risks Still Elevated At These Prices As BigBear.ai Holdings, Inc. (NYSE:BBAI) Shares Dive 26%
VRSN
US$273.37
VeriSign
7D
1.4%
1Y
48.7%
WIX
US$141.08
Wix.com
7D
7.0%
1Y
-15.3%
DOX
US$85.57
Amdocs
7D
-3.1%
1Y
-1.6%