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U.S. IT Industry Analysis

UpdatedJan 24, 2026
DataAggregated Company Financials
Companies124
  • 7D-4.2%
  • 3M-6.4%
  • 1Y7.2%
  • YTD-0.6%

Over the last 7 days, the IT industry has dropped 4.2%, driven by a pullback from Shopify of 12%. Meanwhile, Twilio actually outperformed within the industry, gaining 7.8% in the last week. This takes the industry's 12 month performance to a gain of 7.2%. 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
Sat, 24 Jan 2026US$1.0tUS$252.7bUS$19.8b27.5x51.5x4x
Mon, 22 Dec 2025US$1.1tUS$282.7bUS$20.9b29.8x52.5x3.9x
Wed, 19 Nov 2025US$1.0tUS$281.4bUS$20.8b27.4x49.1x3.6x
Fri, 17 Oct 2025US$1.1tUS$282.8bUS$20.0b32x54x3.8x
Sun, 14 Sep 2025US$988.1bUS$250.9bUS$19.3b29x51.1x3.9x
Tue, 12 Aug 2025US$958.2bUS$249.4bUS$19.5b29.5x49.2x3.8x
Thu, 10 Jul 2025US$1.0tUS$241.7bUS$17.4b29.8x58.5x4.2x
Sat, 07 Jun 2025US$972.4bUS$240.4bUS$17.1b29.7x56.9x4x
Mon, 05 May 2025US$858.0bUS$238.4bUS$17.0b36.3x50.4x3.6x
Wed, 02 Apr 2025US$868.8bUS$242.3bUS$18.5b34.7x47x3.6x
Fri, 28 Feb 2025US$956.6bUS$239.9bUS$18.0b38.8x53.1x4x
Sun, 26 Jan 2025US$898.3bUS$234.1bUS$16.3b43.5x55.1x3.8x
Tue, 24 Dec 2024US$880.2bUS$234.7bUS$16.7b41x52.7x3.8x
Thu, 21 Nov 2024US$830.9bUS$232.8bUS$16.4b44.3x50.8x3.6x
Sat, 19 Oct 2024US$828.0bUS$232.8bUS$17.8b45.5x46.6x3.6x
Mon, 16 Sep 2024US$773.2bUS$233.3bUS$17.5b35.5x44.1x3.3x
Wed, 14 Aug 2024US$714.3bUS$232.7bUS$17.5b28.8x40.8x3.1x
Fri, 12 Jul 2024US$709.7bUS$236.9bUS$17.2b26.8x41.3x3x
Sun, 09 Jun 2024US$679.8bUS$237.2bUS$17.3b26.8x39.4x2.9x
Tue, 07 May 2024US$742.3bUS$236.9bUS$16.0b26.9x46.3x3.1x
Thu, 04 Apr 2024US$764.6bUS$227.8bUS$13.8b25.3x55.3x3.4x
Sat, 02 Mar 2024US$814.2bUS$227.7bUS$14.3b22.9x56.9x3.6x
Mon, 29 Jan 2024US$832.2bUS$230.1bUS$13.4b23.3x62.3x3.6x
Wed, 27 Dec 2023US$791.8bUS$229.5bUS$12.8b20.7x61.8x3.4x
Fri, 24 Nov 2023US$726.2bUS$228.5bUS$12.7b20.8x57.2x3.2x
Sun, 22 Oct 2023US$637.1bUS$227.2bUS$6.5b18.8x98.5x2.8x
Tue, 19 Sep 2023US$684.6bUS$226.6bUS$6.8b23.8x100.9x3x
Thu, 17 Aug 2023US$658.0bUS$226.0bUS$6.5b22.3x100.6x2.9x
Sat, 15 Jul 2023US$696.9bUS$228.7bUS$6.1b25.3x114.5x3x
Mon, 12 Jun 2023US$668.6bUS$228.2bUS$5.9b23.1x113x2.9x
Wed, 10 May 2023US$606.9bUS$232.6bUS$5.9b23.3x103.5x2.6x
Fri, 07 Apr 2023US$589.8bUS$225.6bUS$2.4b22.3x247.9x2.6x
Sun, 05 Mar 2023US$2.0tUS$463.8bUS$22.5b26.6x88.3x4.3x
Tue, 31 Jan 2023US$2.0tUS$460.1bUS$40.0b27.6x50.4x4.4x
Price to Earnings Ratio

50.4x


Total Market Cap: US$2.0tTotal Earnings: US$40.0bTotal Revenue: US$460.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 69x202420252026
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 51.5x which is lower than its 3-year average PE of 69.0x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.0x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 21% per year over the last three years,
  • Revenues have also declined 18% 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 Market-0.39%
Tech-0.96%
IT-4.21%
Data Processing Services-2.19%
IT Consulting-2.81%
Internet Services and Infrastructure-5.81%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.1x.
    • Analysts are expecting annual earnings growth of 16.2%, which is lower than the prior year's growth of 25.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 30% 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
TWLO TwilioUS$128.307.8%
+US$1.4b		-5.8%PE289.4x
WIX Wix.comUS$88.4810.4%
+US$455.1m		-62.4%PE34.8x
GDS GDS HoldingsUS$42.594.7%
+US$386.7m		86.9%PE51x
EPAM EPAM SystemsUS$218.212.6%
+US$309.4m		-13.6%PE32.4x
AKAM Akamai TechnologiesUS$95.081.7%
+US$228.7m		-2.7%PE27x

Latest News

SNOW
US$209.69
Snowflake
7D
-0.3%
1Y
20.4%

SNOW: AI Workloads And Observe Deal Talks Will Support Long-Term Earnings Power

Narrative Update The analyst price target for Snowflake has edged down by about $1 to roughly $283, as analysts incorporate expectations for steady revenue growth and margin trends, moderating discount rates, and slightly lower future P/E assumptions, while weighing mixed recent research that highlights AI driven demand alongside valuation and competitive pressures. Analyst Commentary Recent Street research around Snowflake reflects a mix of optimism on its data platform and AI positioning, paired with clear caution on valuation and competitive intensity.
NET
US$173.44
Cloudflare
7D
-5.8%
1Y
38.6%

NET: AI Security Platform And JD Cloud Expansion Will Drive Future Upside

Cloudflare's updated fair value estimate has eased to about $232.78 from $242.46. This reflects a series of recent analyst price target trims that balance earlier optimism around AI, security and SASE traction with more cautious views on sector sentiment and valuation, and slightly lower assumed future P/E levels.
WIX
US$88.48
Wix.com
7D
10.4%
1Y
-62.4%

WIX: Elevated AI Spending Will Reshape Margins Yet Support Long Term Upside

Analysts have trimmed their fair value estimate for Wix.com from US$160 to about US$115, as higher discount rate assumptions, lower projected profit margins linked to elevated AI and Base44 investment, and tempered revenue growth expectations now offset still supportive views on the company's future P/E and long term AI opportunity. Analyst Commentary Recent Street research on Wix.com has centered on how heavier AI and Base44 spending is reshaping the risk and reward profile, with several bearish analysts cutting price targets while still acknowledging long term potential in AI driven website building and related services.
TWLO
US$128.30
Twilio
7D
7.8%
1Y
-5.8%

TWLO: Improved Execution And Partnerships Are Expected To Support Stronger Future Returns

Twilio's updated fair value estimate has inched up to US$194.38 from US$192.44 as analysts incorporate slightly higher long term growth and margin assumptions, reflected in recent price target increases and more constructive post earnings commentary. Analyst Commentary Bullish analysts are framing the recent fair value move in the context of a more constructive view on Twilio's execution and longer term growth path, citing recent price target changes and post earnings commentary.
CRWV
US$92.98
CoreWeave
7D
-8.1%
1Y
n/a
KC
US$12.34
Kingsoft Cloud Holdings
7D
3.7%
1Y
14.4%

Kingsoft Cloud Holdings Limited's (NASDAQ:KC) Share Price Not Quite Adding Up

Jan 20
Kingsoft Cloud Holdings Limited's (NASDAQ:KC) Share Price Not Quite Adding Up
IBM
US$292.44
International Business Machines
7D
-4.3%
1Y
30.1%

IBM: Quantum And Software Execution Will Drive Returns Through Workforce Shift

Analysts have nudged their fair value estimate for International Business Machines higher to about $302 from roughly $294, citing updated long term assumptions on revenue growth, profitability, and future P/E multiples that reflect recent price target moves and emerging views on quantum computing and software performance. Analyst Commentary Recent Street research on International Business Machines highlights a split view, with some analysts leaning into upside tied to quantum computing and recent acquisitions, while others focus on execution risks in core software and the timeline needed to support higher valuation multiples.
AKAM
US$95.08
Akamai Technologies
7D
1.7%
1Y
-2.7%

AKAM: Fair Outlook As Security And Compute Transition Reaches Key Inflection Point

Analysts have lifted their price target for Akamai Technologies by about US$6 to roughly US$101, citing a stronger profit outlook, a slightly lower required return, and growing conviction in the company’s transition toward security, compute, and AI infrastructure offerings. Analyst Commentary Recent Street research on Akamai highlights a mix of enthusiasm around its shift toward security, compute, and AI infrastructure, alongside some caution about the investment needed to support that shift.
SHOP
US$137.89
Shopify
7D
-11.5%
1Y
28.1%

SHOP: AI Monetization And Operating Leverage Will Support Measured Upside Into 2026

Analysts have nudged our implied fair value for Shopify to about US$179.49 per share, up roughly US$4 from the prior US$175.43. This reflects Street research that highlights stronger top line potential, rising AI related monetization and operating leverage, partially offset by more cautious views on valuation, margins and already high expectations.
EPAM
US$218.21
EPAM Systems
7D
2.6%
1Y
-13.6%
GDS
US$42.59
GDS Holdings
7D
4.7%
1Y
86.9%

GDS: Execution Risk Around 300MW 2025 Leasing Will Pressure Shares

Analysts have slightly reduced their price targets on GDS Holdings, with recent moves such as TD Cowen trimming its target to US$37 and a new Outperform initiation at Macquarie with a US$46.70 target, reflecting updated views on mixed 3Q25 results, maintained 2025 guidance, expectations for 300MW of 2025 leasing, and higher installs in 2026. Analyst Commentary Recent Street research shows a mixed but cautious tone around GDS Holdings, with some bearish analysts trimming expectations even as others initiate coverage with constructive views.
CTSH
US$84.18
Cognizant Technology Solutions
7D
-0.7%
1Y
5.2%

CTSH: AI Partnerships And Bookings Momentum Will Support Measured Future Upside

Analysts have nudged their price target for Cognizant Technology Solutions higher, with fair value moving from about $85.22 to $88.00 as they factor in slightly stronger revenue growth expectations, a marginally higher future P/E multiple, and recent research pointing to healthier bookings, large deal momentum, and a potential new phase of growth and profitability supported by an AI focused strategy. Analyst Commentary Recent research on Cognizant Technology Solutions reflects a mix of optimism around execution and AI driven growth, alongside some caution on bookings trends and valuation.
VRSN
US$250.60
VeriSign
7D
0.5%
1Y
18.9%
OKTA
US$90.76
Okta
7D
1.4%
1Y
2.1%
ACN
US$281.07
Accenture
7D
-1.8%
1Y
-22.4%
KD
US$24.22
Kyndryl Holdings
7D
-3.9%
1Y
-38.4%

KD: Agentic AI Services Will Drive Future Upside

Analysts have maintained their fair value estimate for Kyndryl Holdings at $37.60, with only minor adjustments to discount rate, revenue growth, profit margin and future P/E assumptions. This suggests that their overall price target framework remains largely unchanged.