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U.S. IT Industry Analysis

UpdatedFeb 27, 2026
DataAggregated Company Financials
Companies123
  • 7D-3.2%
  • 3M-16.3%
  • 1Y-11.9%
  • YTD-15.1%

Over the last 7 days, the IT industry has dropped 7.5%, driven by a pullback from International Business Machines of 5.6%. However, the industry is down 16% over the past year. Earnings are forecast to grow by 21% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 27 Feb 2026US$839.0bUS$257.1bUS$21.7b21x38.7x3.3x
Sun, 25 Jan 2026US$1.0tUS$252.7bUS$19.8b27.5x51.2x4x
Tue, 23 Dec 2025US$1.1tUS$282.7bUS$20.9b29.5x52.5x3.9x
Thu, 20 Nov 2025US$1.0tUS$281.1bUS$20.8b27.7x48.8x3.6x
Sat, 18 Oct 2025US$1.1tUS$282.7bUS$20.0b31.7x53.4x3.8x
Mon, 15 Sep 2025US$988.2bUS$250.9bUS$19.3b29x51.2x3.9x
Wed, 13 Aug 2025US$950.4bUS$249.4bUS$19.3b31x49.4x3.8x
Fri, 11 Jul 2025US$1.0tUS$241.7bUS$17.3b29.1x58.4x4.2x
Sun, 08 Jun 2025US$989.0bUS$240.4bUS$17.1b29.7x57.9x4.1x
Tue, 06 May 2025US$858.1bUS$238.4bUS$17.0b36.3x50.4x3.6x
Thu, 03 Apr 2025US$883.0bUS$242.3bUS$18.5b34.9x47.8x3.6x
Sat, 01 Mar 2025US$946.7bUS$239.9bUS$18.0b39.2x52.5x3.9x
Mon, 27 Jan 2025US$898.3bUS$234.1bUS$16.3b43.5x55.1x3.8x
Wed, 25 Dec 2024US$879.0bUS$234.7bUS$16.7b41.2x52.6x3.7x
Fri, 22 Nov 2024US$839.5bUS$233.0bUS$16.3b41.7x51.5x3.6x
Sun, 20 Oct 2024US$831.5bUS$232.8bUS$17.8b45.5x46.8x3.6x
Tue, 17 Sep 2024US$773.2bUS$233.3bUS$17.5b35.5x44.1x3.3x
Thu, 15 Aug 2024US$727.6bUS$232.7bUS$17.5b31.2x41.5x3.1x
Sat, 13 Jul 2024US$715.2bUS$236.9bUS$17.2b28x41.6x3x
Mon, 10 Jun 2024US$679.8bUS$237.2bUS$17.3b26.8x39.4x2.9x
Wed, 08 May 2024US$743.8bUS$236.9bUS$16.0b27.1x46.5x3.1x
Fri, 05 Apr 2024US$764.6bUS$227.8bUS$13.8b25.8x55.3x3.4x
Sun, 03 Mar 2024US$821.4bUS$227.7bUS$14.3b22.9x57.4x3.6x
Tue, 30 Jan 2024US$832.6bUS$230.1bUS$13.4b22.7x62.3x3.6x
Thu, 28 Dec 2023US$798.2bUS$229.5bUS$12.8b20.8x62.3x3.5x
Sat, 25 Nov 2023US$737.5bUS$228.5bUS$12.7b20.6x58.1x3.2x
Mon, 23 Oct 2023US$637.1bUS$227.2bUS$6.5b18.8x98.5x2.8x
Wed, 20 Sep 2023US$684.9bUS$226.6bUS$6.8b25.1x101x3x
Fri, 18 Aug 2023US$658.0bUS$226.0bUS$6.5b21.6x100.6x2.9x
Sun, 16 Jul 2023US$696.9bUS$228.7bUS$6.1b25.3x114.5x3x
Tue, 13 Jun 2023US$680.9bUS$228.2bUS$5.9b23.8x115.1x3x
Thu, 11 May 2023US$614.6bUS$229.7bUS$6.5b22.4x94.4x2.7x
Sat, 08 Apr 2023US$589.8bUS$225.6bUS$2.4b22.3x246.5x2.6x
Mon, 06 Mar 2023US$2.0tUS$463.8bUS$22.5b26.6x88.3x4.3x
Price to Earnings Ratio

88.3x


Total Market Cap: US$2.0tTotal Earnings: US$22.5bTotal Revenue: US$463.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.2x202420252026
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 38.2x which is lower than its 3-year average PE of 68.2x.
  • The industry is trading close to its 3-year average PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the IT industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 18% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

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

US Market0.58%
Tech0.55%
IT-3.24%
Data Processing Services2.99%
Internet Services and Infrastructure-2.38%
IT Consulting-4.12%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.7x.
    • Analysts are expecting annual earnings growth of 12.8%, 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 33% over the next 5 years.
  • This is better than its past earnings growth rate of 13% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.6% 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$119.617.8%
+US$1.3b		2.0%PE536x
VRSN VeriSignUS$225.294.0%
+US$795.0m		-4.1%PE25x
RXT Rackspace TechnologyUS$2.2886.1%
+US$257.0m		-5.4%PS0.2x
CRWV CoreWeaveUS$97.630.5%
+US$255.4m		n/aPS11.8x
WIX Wix.comUS$71.316.9%
+US$251.1m		-64.7%PE28.1x

Latest News

RXT
US$2.28
Rackspace Technology
7D
86.1%
1Y
-5.4%
SNOW
US$173.06
Snowflake
7D
-3.4%
1Y
-0.4%
DOCN
US$54.26
DigitalOcean Holdings
7D
-20.4%
1Y
27.0%
AKAM
US$99.90
Akamai Technologies
7D
-8.8%
1Y
28.3%
VRSN
US$225.29
VeriSign
7D
4.0%
1Y
-4.1%

VeriSign's Future Still Hinges on Single-Service Dependency

A new series of interviews with current and former employees, conducted in January and February 2026, confirm our risk analysis. Management practices continue to be not in line with best-in-class approaches.
ACN
US$207.38
Accenture
7D
-3.5%
1Y
-41.9%

ACN: GenAI Enterprise Modernization Partnerships Will Drive Future Returns

Accenture’s analyst price targets have been reset lower, with figures such as Citi’s move from $266 to $215 contrasted by higher targets like Truist’s $317, as analysts weigh concerns around near term IT services demand and GenAI related cannibalization against steady margins, exposure to enterprise modernization and the potential support implied by modestly adjusted growth, margin and future P/E assumptions in recent models. Analyst Commentary Recent research commentary on Accenture reflects a split tape, with some firms dialing back expectations and others leaning into the long term GenAI and enterprise modernization story while keeping a close eye on valuation and execution risk.
IBM
US$242.01
International Business Machines
7D
-5.6%
1Y
-4.4%
NET
US$174.66
Cloudflare
7D
-9.3%
1Y
24.1%
OKTA
US$75.25
Okta
7D
-8.0%
1Y
-15.6%

OKTA: Cybersecurity Demand And 90 Day Catalyst Watch Will Drive Repricing

Analysts have slightly reduced their Okta fair value estimate by about $1 to $112.55, as lower sector valuation multiples and AI related sentiment have led to lower price targets, even though checks on Okta's business and profitability assumptions remain generally intact. Analyst Commentary Recent research on Okta reflects a mix of optimism about the company’s execution and caution around sector wide repricing and AI related sentiment.
MDB
US$336.61
MongoDB
7D
-5.4%
1Y
28.3%

MDB: Fair Outlook Balances AI Workload Opportunity With Execution And Expectation Risks

Narrative Update: MongoDB Our fair value estimate for MongoDB has been revised to $340.43, reflecting a higher revenue growth assumption of 18.87% and a very large future P/E multiple, as analysts point to broadly supportive price target moves tied to Atlas growth expectations, AI driven demand, and a generally constructive multi year setup in recent research. Analyst Commentary Recent research on MongoDB continues to lean constructive, with several firms lifting their price targets and highlighting the company as a key beneficiary of database modernization and artificial intelligence related workloads.
WIX
US$71.31
Wix.com
7D
6.9%
1Y
-64.7%

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

Analysts have trimmed their Wix.com price targets by $5 to $60 across several firms, reflecting caution around near term margin pressure from Vibe coding and Base44 related spending, even as they highlight ongoing revenue growth assumptions and a still supportive long term AI website builder thesis. Analyst Commentary Recent Street research shows a clear tilt toward more conservative expectations for Wix.com, with several firms cutting price targets and flagging execution risks tied to new initiatives like Vibe coding and Base44.
TWLO
US$119.61
Twilio
7D
7.8%
1Y
2.0%

TWLO: Future Performance Will Reflect Strengthening Organic Growth And Execution Confidence

The updated analyst price target for Twilio is now about $5 higher than before, as analysts factor in recent research that highlights strong Q4 execution, improving organic growth expectations, and a more balanced view on long term profitability and valuation multiples. Analyst Commentary Recent research on Twilio reflects a mix of optimism about execution and growth, alongside more conservative adjustments to valuation targets.
GLOB
US$46.87
Globant
7D
2.2%
1Y
-68.4%

GLOB: GenAI Shift And FIFA Deal Are Expected To Unlock Future Upside

Analysts have nudged their average price target for Globant modestly higher, reflecting slightly stronger assumptions for revenue growth and margins as the company refocuses on GenAI driven work, while still keeping valuation expectations such as future P/E relatively contained. Analyst Commentary Recent research on Globant highlights a mix of optimism around its GenAI repositioning and caution regarding the pace of its revenue recovery and the time needed for a new business model to settle in.
BNAI
US$26.21
Brand Engagement Network
7D
37.0%
1Y
554.9%
WYFI
US$18.51
WhiteFiber
7D
3.8%
1Y
n/a
CRWV
US$97.63
CoreWeave
7D
0.5%
1Y
n/a