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U.S. IT Industry Analysis

UpdatedMar 25, 2026
DataAggregated Company Financials
Companies118
  • 7D-4.6%
  • 3M-21.8%
  • 1Y-8.5%
  • YTD-18.2%

Over the last 7 days, the IT industry has dropped 4.6%, driven by pullbacks in Shopify and International Business Machines of 9.1% and 6.1%, respectively. Meanwhile, Akamai Technologies actually outperformed within the industry, gaining 8.2% in the last week. The industry has fallen 8.5% in the last year. 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
Thu, 26 Mar 2026US$869.9bUS$259.6bUS$21.6b18.9x40.4x3.4x
Sat, 21 Feb 2026US$896.0bUS$256.7bUS$21.7b21.5x41.4x3.5x
Mon, 19 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.5x4.2x
Wed, 17 Dec 2025US$1.1tUS$282.2bUS$21.0b29.3x51.4x3.8x
Fri, 14 Nov 2025US$1.1tUS$280.8bUS$20.5b31.3x53.2x3.9x
Sun, 12 Oct 2025US$1.1tUS$282.5bUS$20.0b30.7x53.2x3.8x
Tue, 09 Sep 2025US$985.7bUS$250.9bUS$19.3b29.4x51x3.9x
Thu, 07 Aug 2025US$928.1bUS$244.2bUS$18.6b26.4x49.8x3.8x
Sat, 05 Jul 2025US$1.0tUS$241.7bUS$17.4b29.5x59.3x4.3x
Mon, 02 Jun 2025US$948.6bUS$240.3bUS$17.0b29x55.7x3.9x
Wed, 30 Apr 2025US$848.6bUS$242.4bUS$18.0b31x47.2x3.5x
Fri, 28 Mar 2025US$891.3bUS$242.7bUS$18.3b42.5x48.7x3.7x
Sun, 23 Feb 2025US$976.6bUS$239.7bUS$18.2b40.2x53.8x4.1x
Tue, 21 Jan 2025US$872.5bUS$234.1bUS$16.3b42.1x53.4x3.7x
Thu, 19 Dec 2024US$901.0bUS$233.2bUS$16.4b43.7x55x3.9x
Sat, 16 Nov 2024US$846.0bUS$232.7bUS$16.3b44.3x51.8x3.6x
Mon, 14 Oct 2024US$823.0bUS$232.9bUS$17.8b43.4x46.3x3.5x
Wed, 11 Sep 2024US$746.9bUS$233.2bUS$17.5b35.5x42.6x3.2x
Fri, 09 Aug 2024US$712.2bUS$232.9bUS$17.5b29x40.6x3.1x
Sun, 07 Jul 2024US$718.8bUS$236.9bUS$17.2b26.9x41.8x3x
Tue, 04 Jun 2024US$671.5bUS$237.1bUS$17.3b27.8x38.8x2.8x
Thu, 02 May 2024US$699.6bUS$228.0bUS$14.3b26.2x48.9x3.1x
Sat, 30 Mar 2024US$783.3bUS$227.8bUS$13.8b24.5x56.6x3.4x
Mon, 26 Feb 2024US$827.1bUS$227.5bUS$14.2b22x58.2x3.6x
Wed, 24 Jan 2024US$818.4bUS$229.4bUS$12.9b23.2x63.2x3.6x
Fri, 22 Dec 2023US$774.9bUS$229.5bUS$12.8b20.3x60.5x3.4x
Sun, 19 Nov 2023US$717.0bUS$228.4bUS$12.7b20.7x56.5x3.1x
Tue, 17 Oct 2023US$659.4bUS$227.2bUS$6.5b20.9x101.9x2.9x
Thu, 14 Sep 2023US$693.9bUS$226.6bUS$6.8b22.9x102.2x3.1x
Sat, 12 Aug 2023US$665.1bUS$226.3bUS$6.7b22.8x99.6x2.9x
Mon, 10 Jul 2023US$667.8bUS$228.6bUS$6.1b24.2x109.6x2.9x
Wed, 07 Jun 2023US$675.2bUS$228.2bUS$5.9b24.2x114x3x
Fri, 05 May 2023US$605.3bUS$233.0bUS$3.9b23x154.2x2.6x
Sun, 02 Apr 2023US$606.6bUS$225.6bUS$2.4b22.3x254x2.7x
Price to Earnings Ratio

254x


Total Market Cap: US$606.6bTotal Earnings: US$2.4bTotal Revenue: US$225.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 66.4x202420252026
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 40.4x which is lower than its 3-year average PE of 66.6x.
  • 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 110% per year over the last three years.
  • Revenues for these companies have grown 4.8% 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-2.29%
Tech-2.62%
IT-4.56%
Internet Services and Infrastructure-4.51%
IT Consulting-4.61%
Data Processing Services-5.92%
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 9.6%, 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 27% 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
CRWV CoreWeaveUS$87.585.7%
+US$2.5b		n/aPS9x
AKAM Akamai TechnologiesUS$119.159.5%
+US$1.5b		46.3%PE38.2x
VRSN VeriSignUS$251.705.4%
+US$1.2b		1.4%PE28x
APLD Applied DigitalUS$28.376.5%
+US$480.9m		334.5%PS30x
FSLY FastlyUS$29.7910.8%
+US$441.7m		333.6%PS7.2x

Latest News

DOX
US$65.41
Amdocs
7D
1.7%
1Y
-28.9%
AKAM
US$119.15
Akamai Technologies
7D
9.5%
1Y
46.3%
DOCN
US$87.00
DigitalOcean Holdings
7D
5.5%
1Y
137.1%
SHOP
US$118.42
Shopify
7D
-4.3%
1Y
13.6%
MDB
US$253.76
MongoDB
7D
-6.8%
1Y
27.7%
CRWV
US$87.58
CoreWeave
7D
5.7%
1Y
n/a
IBM
US$241.39
International Business Machines
7D
-4.1%
1Y
-3.6%
ACN
US$192.29
Accenture
7D
-1.5%
1Y
-38.2%
IT
US$150.23
Gartner
7D
-5.0%
1Y
-64.8%

IT: Ongoing Buybacks Will Support Future Upside Despite Lower Fair Value Assumptions

Analysts have revised their price target on Gartner down from about $284 to roughly $190, citing updates to fair value estimates that reflect changes in discount rate assumptions, revenue growth expectations, profit margin outlook, and projected future P/E levels. What's in the News From October 1, 2025 to December 31, 2025, Gartner repurchased 2,124,317 shares, representing 2.91% of its shares, for a total of $507.84 million under its ongoing buyback program (Key Developments).
SNOW
US$160.61
Snowflake
7D
-7.3%
1Y
0.5%

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

Snowflake's updated analyst price target edges slightly lower, with investors seeing a roughly $4 reduction in fair value as analysts refresh their models around Q4 results, tighter discount rates, and modestly higher long term revenue growth and profit margin assumptions tied to building AI use cases and recent partnerships. Analyst Commentary Street research around the Q4 print reflects a mixed but generally constructive stance, with most firms trimming price targets while still pointing to solid execution, AI traction and supportive long term growth frameworks.
FSLY
US$29.79
Fastly
7D
10.8%
1Y
333.6%
ASGN
US$38.62
ASGN
7D
8.2%
1Y
-40.0%

ASGN: Buybacks And M&A Execution Will Shape Future Upside Potential

ASGN's fair value estimate has shifted from $52.83 to $54.50 as analysts update their price targets, citing adjusted assumptions for revenue growth, profitability, discount rate, and future P/E in light of recent Street research moves from BMO Capital, Baird, Truist, and Wells Fargo. Analyst Commentary Recent price target changes cluster tightly, with several bullish analysts lifting their targets by US$2 and one by US$10, while a bearish analyst trimmed a target by US$2.
NET
US$218.00
Cloudflare
7D
-3.3%
1Y
79.9%

NET: AI Infrastructure Momentum And Security Partnerships Will Shape Balanced Outlook

Cloudflare's updated analyst price target edges higher to about $232, as analysts balance a series of recent target cuts and upgrades with views that the recent sector selloff tied to Claude Code Security appears disconnected from the core cybersecurity businesses they cover. Analyst Commentary Recent research on Cloudflare reflects a split tape, with several firms cutting price targets while others issue upgrades or modest target increases.
APLD
US$28.37
Applied Digital
7D
6.5%
1Y
334.5%
GDDY
US$81.58
GoDaddy
7D
-3.0%
1Y
-55.4%

GDDY: AI Agent Identity Push Will Face Execution And Competitive Tests

Narrative Update Analysts have shifted GoDaddy's implied fair value from $130 to $77, pointing to lower price targets tied to softer bookings trends, more modest revenue growth assumptions, and a reduced future P/E multiple, even as margin expectations edge higher on AI driven efficiencies and product mix. Analyst Commentary Recent Street research on GoDaddy clusters around a reset in expectations, with multiple bearish analysts trimming price targets and flagging execution risks around the newer go to market approach and AI related competitive pressures.
VRSN
US$251.70
VeriSign
7D
5.4%
1Y
1.4%

VRSN: Steady .Com Base And Buybacks Will Support Future Cash Returns

Analysts have trimmed their average price target on VeriSign by $57, citing updated models that reflect a slightly higher discount rate and P/E assumption, even as they acknowledge steady. com domain trends and fairly valued shares.