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U.S. IT Industry Analysis

UpdatedSep 13, 2025
DataAggregated Company Financials
Companies109
  • 7D0.2%
  • 3M-2.7%
  • 1Y16.3%
  • YTD7.8%

Over the last 7 days, the IT industry has remained flat, although notably CoreWeave gained 26%. The past year has been better, since the industry has gained 16% in that time. 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
Sun, 14 Sep 2025US$1.0tUS$250.9bUS$19.3b29x51.9x4x
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
Thu, 29 Dec 2022US$1.8tUS$457.8bUS$39.2b27.1x47.1x4x
Sat, 26 Nov 2022US$2.0tUS$456.3bUS$39.0b28.6x50x4.3x
Mon, 24 Oct 2022US$1.8tUS$450.4bUS$37.4b27.8x49.1x4.1x
Wed, 21 Sep 2022US$1.9tUS$447.1bUS$41.4b26.8x45.8x4.2x
Price to Earnings Ratio

45.8x


Total Market Cap: US$1.9tTotal Earnings: US$41.4bTotal Revenue: US$447.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.4x202320242025
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 51.9x which is lower than its 3-year average PE of 68.4x.
  • 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 22% 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 Market1.69%
Tech3.61%
IT0.24%
Internet Services and Infrastructure2.17%
Data Processing Services-0.39%
IT Consulting-1.73%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 28.1%, which is higher than its past year's earnings growth of 9.7% per year.
  • Investors are most pessimistic about the IT Consulting industry, which is trading below its 3-year average of 31.8x.
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 better than its past earnings growth rate of 9.7% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 10% 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$111.9625.7%
+US$11.9b		n/aPS16.5x
IBM International Business MachinesUS$253.442.0%
+US$4.6b		18.0%PE40.3x
NET CloudflareUS$221.323.2%
+US$2.4b		181.6%PS41x
APLD Applied DigitalUS$18.6834.5%
+US$1.3b		206.7%PS33.9x
GDS GDS HoldingsUS$38.2115.2%
+US$1.0b		137.0%PE196.8x

Latest News

GLOB
US$56.11
Globant
7D
-11.1%
1Y
-71.5%

Globant S.A.'s (NYSE:GLOB) Share Price Is Still Matching Investor Opinion Despite 30% Slump

Sep 13
Globant S.A.'s (NYSE:GLOB) Share Price Is Still Matching Investor Opinion Despite 30% Slump
WIX
US$171.63
Wix.com
7D
12.1%
1Y
9.5%
NET
US$221.32
Cloudflare
7D
3.2%
1Y
181.6%
APLD
US$18.68
Applied Digital
7D
34.5%
1Y
206.7%

15-Year CoreWeave Lease And AI Demand Will Elevate Data Centers

Analysts raised Applied Digital’s price target to $20.00, citing long-term revenue visibility from major lease agreements, expanding datacenter footprint, undervalued shares versus peers, and growing demand from hyperscale customers. Analyst Commentary Bullish analysts highlight Applied Digital's successful 400MW lease at Ellendale to CoreWeave, bringing substantial long-term revenue visibility (estimated at ~$11B over 15.5 years).
TWLO
US$102.33
Twilio
7D
-5.8%
1Y
72.1%
EPAM
US$156.09
EPAM Systems
7D
-7.9%
1Y
-22.7%

Enterprise AI Adoption Will Transform Cloud Migration And Data Engineering

Analysts have modestly lowered EPAM’s price target amid sector-wide caution and macroeconomic uncertainty, balanced by recognition of its undervalued status and improving growth outlook, resulting in a minor decrease in fair value from $213.31 to $211.12. Analyst Commentary Bullish analysts see EPAM’s current valuation as undervalued, with the stock reflecting minimal credit for its recovering growth and successful global delivery reorganization.
ACN
US$238.54
Accenture
7D
-6.4%
1Y
-31.8%
KC
US$16.28
Kingsoft Cloud Holdings
7D
17.8%
1Y
623.6%

AI And Cloud Advances Will Unlock Future Value

Kingsoft Cloud Holdings’ future P/E ratio has sharply improved despite a slight decline in net profit margin, helping to keep the consensus price target essentially flat at $17.63. What's in the News Company expects revenue growth rate for the second half of 2025 to be significantly higher than the first half.
AKAM
US$76.84
Akamai Technologies
7D
-2.2%
1Y
-22.0%

Cloud, AI And Cybersecurity Will Unlock Future Opportunities

Analysts remain divided on Akamai Technologies due to concerns over consistent growth, particularly in Security and Delivery segments, and while recent strong results and guidance upgrades have fueled some optimism, the consensus Analyst Price Target is unchanged at $95.20. Analyst Commentary Concerns about Akamai's ability to deliver consistent growth across all business segments, with particular emphasis on the need for stabilization in Security and Delivery segment revenues.
VRSN
US$285.52
VeriSign
7D
1.9%
1Y
56.2%

New Domain Initiatives And Dividends Will Face Web Hurdles

With no material changes in revenue growth forecasts or discount rates, analyst valuation for VeriSign remains steady, reflected in an unchanged consensus price target of $309. What's in the News VeriSign completed a $1.2255 billion follow-on equity offering for 4.3 million shares at $285 per share with a $2.85 discount.
CRWV
US$111.96
CoreWeave
7D
25.7%
1Y
n/a
SNOW
US$221.15
Snowflake
7D
-2.0%
1Y
94.6%
SHOP
US$143.38
Shopify
7D
-2.3%
1Y
97.9%
GDS
US$38.21
GDS Holdings
7D
15.2%
1Y
137.0%

900MW Land In China Will Expand AI Data Centers

GDS Holdings’ consensus price target has increased to $47.25 as analysts cite improved balance sheet strength from asset-backed deals and a REIT IPO, anticipated dual-primary listing in Hong Kong, and resumed high-end chip shipments in China as catalysts for higher valuation and growth. Analyst Commentary Bullish analysts cite improved valuation and balance sheet strength following asset-backed securities deals and a commercial real estate investment trust (C-REIT) IPO, which reduced net debt.
CTSH
US$69.17
Cognizant Technology Solutions
7D
-3.7%
1Y
-10.4%

AI-driven Consulting And Transformation Will Open Financial And Health Opportunities

Analysts have modestly reduced their price target for Cognizant Technology Solutions from $87.63 to $86.63, citing sector underperformance, over-optimism, and macroeconomic uncertainty driving a more cautious, neutral outlook. Analyst Commentary Analysts note that the payments, processors, and IT services industries have materially underperformed the S&P 500 Index year-to-date due to elevated investor expectations ahead of the U.S. November election.
IBM
US$253.44
International Business Machines
7D
2.0%
1Y
18.0%

Estimating The Intrinsic Value Of International Business Machines Corporation (NYSE:IBM)

Aug 20
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