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U.S. IT Industry Analysis

UpdatedMar 14, 2026
DataAggregated Company Financials
Companies123
  • 7D-3.0%
  • 3M-19.1%
  • 1Y-3.6%
  • YTD-15.8%

In the last week, the IT industry is down 2.6% with International Business Machines down the most at 4.9%. Meanwhile, Cloudflare actually outperformed within the industry, gaining 8.8% in the last week. Over the last year, the industry has been flat overall. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 14 Mar 2026US$866.9bUS$258.1bUS$21.5b19.3x40.3x3.4x
Mon, 09 Feb 2026US$931.9bUS$255.1bUS$22.6b26.5x41.2x3.7x
Wed, 07 Jan 2026US$1.1tUS$283.0bUS$20.9b30.5x51.5x3.8x
Fri, 05 Dec 2025US$1.1tUS$282.1bUS$21.0b30x52.3x3.9x
Sun, 02 Nov 2025US$1.2tUS$279.2bUS$21.0b31.6x55x4.1x
Tue, 30 Sep 2025US$1.0tUS$251.9bUS$19.1b30.9x53.1x4x
Thu, 28 Aug 2025US$950.4bUS$250.7bUS$19.3b30.4x49.2x3.8x
Sat, 26 Jul 2025US$972.6bUS$242.9bUS$17.7b27.7x55x4x
Mon, 23 Jun 2025US$983.7bUS$241.7bUS$17.4b27x56.7x4.1x
Wed, 21 May 2025US$946.5bUS$239.9bUS$16.8b30.2x56.4x3.9x
Fri, 18 Apr 2025US$809.6bUS$242.4bUS$18.5b33.9x43.8x3.3x
Sun, 16 Mar 2025US$870.4bUS$240.0bUS$18.7b45.8x46.6x3.6x
Tue, 11 Feb 2025US$981.1bUS$234.2bUS$16.3b51.2x60.3x4.2x
Thu, 09 Jan 2025US$869.9bUS$234.0bUS$16.5b46.2x52.9x3.7x
Sat, 07 Dec 2024US$906.6bUS$233.2bUS$16.4b48.2x55.4x3.9x
Mon, 04 Nov 2024US$776.2bUS$233.1bUS$15.9b45.6x48.7x3.3x
Wed, 02 Oct 2024US$802.2bUS$233.8bUS$17.8b41x45x3.4x
Fri, 30 Aug 2024US$744.4bUS$233.2bUS$17.6b34.6x42.4x3.2x
Sun, 28 Jul 2024US$743.4bUS$237.1bUS$17.4b29.3x42.8x3.1x
Tue, 25 Jun 2024US$703.6bUS$237.1bUS$17.2b27.7x41x3x
Thu, 23 May 2024US$718.2bUS$236.8bUS$17.3b25.5x41.5x3x
Sat, 20 Apr 2024US$721.5bUS$227.7bUS$13.7b24.2x52.5x3.2x
Mon, 18 Mar 2024US$798.4bUS$227.7bUS$14.4b22.3x55.5x3.5x
Wed, 14 Feb 2024US$818.2bUS$227.2bUS$14.4b22.7x56.8x3.6x
Fri, 12 Jan 2024US$785.0bUS$229.4bUS$12.9b20.3x60.7x3.4x
Sun, 10 Dec 2023US$759.9bUS$229.0bUS$12.8b21.3x59.3x3.3x
Tue, 07 Nov 2023US$679.6bUS$228.3bUS$12.1b20.1x56x3x
Thu, 05 Oct 2023US$661.8bUS$227.2bUS$6.5b22.3x102.3x2.9x
Sat, 02 Sep 2023US$710.1bUS$226.6bUS$6.8b21.9x104.4x3.1x
Mon, 31 Jul 2023US$697.6bUS$228.6bUS$6.2b23.3x112.5x3.1x
Wed, 28 Jun 2023US$668.0bUS$228.6bUS$6.1b23.6x108.7x2.9x
Fri, 26 May 2023US$636.2bUS$229.1bUS$5.1b23.8x124.3x2.8x
Sun, 23 Apr 2023US$585.8bUS$225.6bUS$2.7b22.4x214.9x2.6x
Tue, 21 Mar 2023US$555.6bUS$224.7bUS$2.5b22.5x226.6x2.5x
Price to Earnings Ratio

226.6x


Total Market Cap: US$555.6bTotal Earnings: US$2.5bTotal Revenue: US$224.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 67.6x202420252026
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 41.0x which is lower than its 3-year average PE of 67.6x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 106% per year over the last three years.
  • Revenues for these companies have grown 4.7% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market-1.64%
Tech-0.75%
IT-2.95%
Internet Services and Infrastructure0.40%
IT Consulting-6.19%
Data Processing Services-7.53%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.3x.
    • Analysts are expecting annual earnings growth of 13.4%, which is lower than the prior year's growth of 26.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.4% 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
NET CloudflareUS$212.458.8%
+US$6.1b		82.9%PS34.5x
CRWV CoreWeaveUS$81.1111.1%
+US$4.3b		n/aPS8.3x
DOCN DigitalOcean HoldingsUS$68.6326.0%
+US$1.3b		89.8%PE24.4x
AKAM Akamai TechnologiesUS$107.677.8%
+US$1.1b		33.4%PE34.5x
FSLY FastlyUS$24.5822.0%
+US$674.0m		258.8%PS6x

Latest News

IBM
US$246.28
International Business Machines
7D
-4.9%
1Y
-0.8%
ACN
US$196.65
Accenture
7D
-8.5%
1Y
-38.3%

AI And Cloud Demand Will Shape Earnings While Margin Risks Keep Expectations Measured

Catalysts About Accenture Accenture is a global professional services firm that provides consulting, technology, AI and managed services across multiple industries and regions. What are the underlying business or industry changes driving this perspective?
DOCN
US$68.63
DigitalOcean Holdings
7D
26.0%
1Y
89.8%
SHOP
US$122.96
Shopify
7D
-5.6%
1Y
29.6%
TWLO
US$124.50
Twilio
7D
-2.8%
1Y
25.8%
KC
US$13.54
Kingsoft Cloud Holdings
7D
12.9%
1Y
-21.8%
CRWV
US$81.11
CoreWeave
7D
11.1%
1Y
n/a
FSLY
US$24.58
Fastly
7D
22.0%
1Y
258.8%
SNOW
US$178.66
Snowflake
7D
-1.0%
1Y
14.4%

SNOW: OpenAI Alliance And AI Workloads Will Drive Future Platform Adoption

We are trimming our Snowflake fair value estimate by about $25.80 to $341.03, reflecting a higher discount rate and lower future P/E assumption, even as analysts point to solid Q4 execution, accelerating AI use cases, and generally supportive long term growth and margin profiles in their updated price targets. Analyst Commentary Street research around Snowflake has been active, with most firms adjusting price targets while still expressing confidence in the company’s execution, AI positioning, and long term opportunity.
AKAM
US$107.67
Akamai Technologies
7D
7.8%
1Y
33.4%
NET
US$212.45
Cloudflare
7D
8.8%
1Y
82.9%

NET: AI Infrastructure And JD Cloud Partnership Will Drive Future Upside

Analysts have trimmed their average Cloudflare price target slightly by about $1 to reflect a higher discount rate and sharply lower modeled profit margins, while still highlighting continued revenue strength and questioning recent security sector selling linked to Claude Code Security news. Analyst Commentary Recent research on Cloudflare reflects a split tape, with several banks trimming price targets on valuation and margin assumptions at the same time others are upgrading ratings or lifting targets on product momentum and AI exposure.
MDB
US$260.50
MongoDB
7D
-3.7%
1Y
40.5%

MDB: Fair Outlook Sees AI Data Opportunity Tempered By Atlas And Leadership Uncertainty

Narrative Update Our updated analyst price target for MongoDB moves from $340.43 to $250.00, reflecting analysts' lower long term revenue growth assumptions, a slightly higher discount rate and a more conservative future P/E multiple, even as they highlight ongoing AI related opportunities and the recent post earnings selloff as a reset in expectations rather than a change in the core story. Analyst Commentary A wave of post earnings research on MongoDB has centered on resetting expectations after mixed guidance and a sharp pullback in the share price.
APLD
US$27.05
Applied Digital
7D
7.6%
1Y
286.4%

APLD: Hyperscale Power Leases And New AI Campuses Will Drive Future Upside

Analysts are keeping their $36 price target on Applied Digital steady, citing recent hyperscaler leases, expanded AI infrastructure contracts, and continued buy ratings across the Street as reasons to maintain their existing valuation framework, even as they update assumptions for discount rate, growth, margins, and future P/E. Analyst Commentary Street research on Applied Digital has generally highlighted strong interest in its AI focused infrastructure model, supported by long term colocation leases and a growing pipeline of potential hyperscaler agreements.
GDS
US$42.86
GDS Holdings
7D
4.9%
1Y
21.5%
GDDY
US$81.22
GoDaddy
7D
-13.5%
1Y
-53.9%

GDDY: AI Agentic Offerings Will Support Margins And Long Term Returns

Narrative Update on GoDaddy Analysts have reset expectations for GoDaddy, with our illustrative fair value moving from about $175.00 to roughly $119.43 as lower Street price targets, tempered revenue growth assumptions, and a reduced future P/E outlook reflect concerns over softer 2026 guidance, bookings trends, and ongoing debate around AI related competitive risks, even as newer AI driven offerings and margin guidance keep longer term potential in focus. Analyst Commentary Street research has shifted sharply lower on GoDaddy's valuation assumptions, with a series of reduced price targets clustering in the US$77 to US$210 range.
CTSH
US$60.37
Cognizant Technology Solutions
7D
-8.9%
1Y
-23.7%

CTSH: AI Partnerships And New Long Term Deals Will Support Upside

The analyst price target for Cognizant Technology Solutions has been trimmed by less than $1, as analysts balance slightly lower fair value and growth assumptions with recent mixed target changes across the Street and growing interest in the company’s AI traction. Analyst Commentary Recent research on Cognizant Technology Solutions has been active, with several firms adjusting price targets in both directions and a series of fresh initiations and upgrades.