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U.S. IT Industry Analysis

UpdatedJan 27, 2026
DataAggregated Company Financials
Companies124
  • 7D-2.9%
  • 3M-7.2%
  • 1Y7.7%
  • YTD0.7%

Over the last 7 days, the IT industry has dropped 2.9%, driven by Shopify declining 13%. In contrast, Twilio has gained 13%. Over the past 12 months, the industry was up 7.7%. 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
Wed, 28 Jan 2026US$1.0tUS$252.7bUS$19.8b28x51.3x4x
Fri, 26 Dec 2025US$1.1tUS$283.1bUS$20.9b29.6x52.5x3.9x
Sun, 23 Nov 2025US$1.0tUS$281.4bUS$20.9b27.8x49x3.6x
Tue, 21 Oct 2025US$1.1tUS$282.7bUS$20.0b30.1x54.2x3.8x
Thu, 18 Sep 2025US$997.3bUS$251.0bUS$19.3b33x51.6x4x
Sat, 16 Aug 2025US$937.3bUS$250.3bUS$19.3b29.8x48.7x3.7x
Mon, 14 Jul 2025US$962.6bUS$241.7bUS$17.4b28.4x55.5x4x
Wed, 11 Jun 2025US$999.5bUS$240.4bUS$17.1b30.1x58.5x4.2x
Fri, 09 May 2025US$862.1bUS$238.5bUS$17.1b33.8x50.3x3.6x
Sun, 06 Apr 2025US$779.7bUS$242.3bUS$18.5b30.9x42.2x3.2x
Tue, 04 Mar 2025US$946.7bUS$239.9bUS$18.0b38.6x52.5x3.9x
Thu, 30 Jan 2025US$937.5bUS$234.1bUS$16.3b43.1x57.4x4x
Sat, 28 Dec 2024US$880.7bUS$234.7bUS$16.7b40.8x52.7x3.8x
Mon, 25 Nov 2024US$876.1bUS$233.0bUS$16.3b41.6x53.7x3.8x
Wed, 23 Oct 2024US$829.1bUS$232.8bUS$17.8b43.7x46.6x3.6x
Fri, 20 Sep 2024US$764.8bUS$233.3bUS$17.5b35.5x43.6x3.3x
Sun, 18 Aug 2024US$745.7bUS$232.8bUS$17.5b35.3x42.5x3.2x
Tue, 16 Jul 2024US$729.5bUS$236.9bUS$17.2b28.6x42.5x3.1x
Thu, 13 Jun 2024US$686.6bUS$237.2bUS$17.3b27.4x39.8x2.9x
Sat, 11 May 2024US$713.7bUS$236.9bUS$16.7b23.4x42.7x3x
Mon, 08 Apr 2024US$763.7bUS$227.8bUS$13.8b25.6x55.2x3.4x
Wed, 06 Mar 2024US$824.2bUS$227.7bUS$14.3b21.2x57.6x3.6x
Fri, 02 Feb 2024US$826.1bUS$230.1bUS$13.4b23.4x61.8x3.6x
Sun, 31 Dec 2023US$797.2bUS$229.5bUS$12.8b20.7x62.2x3.5x
Tue, 28 Nov 2023US$737.5bUS$228.5bUS$12.7b20.6x58.1x3.2x
Thu, 26 Oct 2023US$621.1bUS$227.2bUS$6.5b18x96x2.7x
Sat, 23 Sep 2023US$671.1bUS$226.6bUS$6.8b24x99x3x
Mon, 21 Aug 2023US$650.0bUS$226.1bUS$6.5b20.5x99.3x2.9x
Wed, 19 Jul 2023US$709.8bUS$228.7bUS$6.1b25.9x116.5x3.1x
Fri, 16 Jun 2023US$690.6bUS$228.3bUS$5.9b24.2x116.7x3x
Sun, 14 May 2023US$615.5bUS$229.7bUS$6.5b23.5x95x2.7x
Tue, 11 Apr 2023US$590.7bUS$225.6bUS$2.5b23.2x240.2x2.6x
Thu, 09 Mar 2023US$2.0tUS$463.8bUS$22.5b26.4x87.3x4.2x
Sat, 04 Feb 2023US$2.1tUS$459.5bUS$40.0b28.4x51.9x4.5x
Price to Earnings Ratio

51.9x


Total Market Cap: US$2.1tTotal Earnings: US$40.0bTotal Revenue: US$459.5bTotal 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 51.3x 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 Market0.12%
Tech-0.16%
IT-2.90%
IT Consulting-2.01%
Data Processing Services-2.10%
Internet Services and Infrastructure-3.90%
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 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 9.7% 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$133.9712.5%
+US$2.3b		-3.6%PE302.2x
NET CloudflareUS$189.352.8%
+US$1.8b		49.7%PS32.9x
GDS GDS HoldingsUS$46.5120.7%
+US$1.6b		111.8%PE55.6x
MDB MongoDBUS$411.252.9%
+US$935.2m		55.4%PS14.4x
AKAM Akamai TechnologiesUS$98.665.5%
+US$743.8m		-1.0%PE28x

Latest News

HCKT
US$19.24
Hackett Group
7D
-2.5%
1Y
-38.1%
AKAM
US$103.26
Akamai Technologies
7D
15.2%
1Y
2.7%
SNOW
US$212.75
Snowflake
7D
3.2%
1Y
13.2%
RXT
US$0.74
Rackspace Technology
7D
-18.4%
1Y
-68.5%
TSSI
US$10.83
TSS
7D
-2.6%
1Y
-15.0%
KD
US$23.83
Kyndryl Holdings
7D
-2.1%
1Y
-38.0%

KD: Agentic AI And Expanded Buybacks Will Support Future Upside

Analysts left their fair value estimate for Kyndryl Holdings essentially unchanged at US$37.60. This reflects only small tweaks to assumptions such as the discount rate, long term revenue growth, profit margin, and future P/E that did not materially alter their overall view.
GDYN
US$8.34
Grid Dynamics Holdings
7D
-4.2%
1Y
-61.2%

GDYN: AWS AI Collaboration Will Support Future Upside

Analysts have reaffirmed their price target on Grid Dynamics Holdings at US$12.50, with minor tweaks to the discount rate and future P/E assumptions reflecting updated views on risk and earnings quality. What's in the News Entered a multi year collaboration agreement with Amazon Web Services focused on helping enterprise clients plan and scale generative AI projects, building on a 15 year relationship between the companies (Client announcement).
UIS
US$2.79
Unisys
7D
-7.9%
1Y
-59.0%

UIS: Fair Outlook Will Weigh Bylaw Shift And 2025 Guidance Against Turnaround Hopes

Analysts have adjusted their price target on Unisys, citing updated assumptions for slightly higher revenue growth, a marginally stronger profit margin, and a modestly lower future P/E multiple. Together, these factors influence their view of the stock's valuation range in currency terms.
CMRC
US$3.18
Commerce.com
7D
-6.2%
1Y
-52.0%

CMRC: Higher Margins And Agentic Commerce Push Will Support Future Upside

Analysts have reduced their price target on Commerce.com to about $6.50 from roughly $7.56, citing updated views on fair value, a higher discount rate, slightly softer revenue growth assumptions, improved profit margin expectations, and a lower future P/E outlook following recent research, including a downgrade at a major firm. Analyst Commentary Bullish Takeaways Bullish analysts see improved profit margin expectations as a key support for the revised fair value, arguing that better cost control could help offset softer revenue assumptions.
NET
US$205.95
Cloudflare
7D
16.1%
1Y
47.1%

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.
MDB
US$411.89
MongoDB
7D
7.0%
1Y
45.0%

MDB: Atlas And AI Adoption Will Support Upcoming Leadership Transition

Analysts have modestly raised their implied outlook on MongoDB, with price targets now clustering in the US$405 to US$500 range. They cite stronger Atlas momentum, improving profitability, and confidence in the company’s AI positioning and new leadership.
TWLO
US$133.85
Twilio
7D
11.8%
1Y
-8.9%

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$108.86
CoreWeave
7D
14.3%
1Y
n/a
IBM
US$293.86
International Business Machines
7D
0.9%
1Y
30.2%

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.
SHOP
US$137.50
Shopify
7D
-4.8%
1Y
17.1%

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.
ACN
US$275.80
Accenture
7D
1.1%
1Y
-27.1%