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U.S. IT Industry Analysis

UpdatedFeb 13, 2026
DataAggregated Company Financials
Companies124
  • 7D-1.4%
  • 3M-13.5%
  • 1Y-19.0%
  • YTD-14.1%

Last week, the IT industry hasn't moved much but Shopify is up 6.7% in that time. As for the longer term, the industry has declined 15% in the last year. Earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 13 Feb 2026US$918.0bUS$256.3bUS$21.9b22.9x41.9x3.6x
Sun, 11 Jan 2026US$1.1tUS$282.8bUS$21.0b30.9x52.2x3.9x
Tue, 09 Dec 2025US$1.1tUS$282.1bUS$21.0b30.5x51.8x3.9x
Thu, 06 Nov 2025US$1.1tUS$279.9bUS$20.0b29.7x54.7x3.9x
Sat, 04 Oct 2025US$1.1tUS$283.3bUS$20.1b33.2x54.2x3.8x
Mon, 01 Sep 2025US$988.2bUS$250.9bUS$19.3b32.7x51.2x3.9x
Wed, 30 Jul 2025US$977.0bUS$242.9bUS$17.7b26.8x55.2x4x
Fri, 27 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.1x4.2x
Sun, 25 May 2025US$930.5bUS$240.2bUS$16.9b29x54.9x3.9x
Tue, 22 Apr 2025US$804.6bUS$242.4bUS$18.5b32.3x43.5x3.3x
Thu, 20 Mar 2025US$872.0bUS$240.0bUS$19.1b44.8x45.6x3.6x
Sat, 15 Feb 2025US$1.0tUS$239.6bUS$18.2b44.8x57.5x4.4x
Mon, 13 Jan 2025US$855.5bUS$234.0bUS$16.5b38.9x52x3.7x
Wed, 11 Dec 2024US$907.6bUS$233.2bUS$16.4b45.9x55.5x3.9x
Fri, 08 Nov 2024US$806.4bUS$233.0bUS$16.3b46x49.6x3.5x
Sun, 06 Oct 2024US$806.1bUS$232.9bUS$17.8b43.3x45.4x3.5x
Tue, 03 Sep 2024US$761.2bUS$233.2bUS$17.5b38.3x43.4x3.3x
Thu, 01 Aug 2024US$751.2bUS$237.2bUS$17.4b29.7x43.1x3.2x
Sat, 29 Jun 2024US$706.4bUS$237.1bUS$17.2b27.9x41.1x3x
Mon, 27 May 2024US$707.2bUS$237.0bUS$17.2b28.2x41x3x
Wed, 24 Apr 2024US$734.3bUS$227.8bUS$13.7b24.2x53.4x3.2x
Fri, 22 Mar 2024US$816.2bUS$227.7bUS$14.6b22.5x56.1x3.6x
Sun, 18 Feb 2024US$831.3bUS$227.5bUS$14.2b23.4x58.5x3.7x
Tue, 16 Jan 2024US$799.2bUS$229.4bUS$12.9b20.7x61.8x3.5x
Thu, 14 Dec 2023US$770.8bUS$229.0bUS$12.8b21x60.2x3.4x
Sat, 11 Nov 2023US$679.6bUS$228.4bUS$12.6b20.9x53.8x3x
Mon, 09 Oct 2023US$668.4bUS$227.2bUS$6.5b22.3x103.3x2.9x
Wed, 06 Sep 2023US$709.1bUS$226.6bUS$6.8b22.3x104.2x3.1x
Fri, 04 Aug 2023US$682.9bUS$226.9bUS$6.3b23.3x109x3x
Sun, 02 Jul 2023US$679.5bUS$228.6bUS$6.1b23.6x111.5x3x
Tue, 30 May 2023US$646.8bUS$228.0bUS$5.8b23.4x112.5x2.8x
Thu, 27 Apr 2023US$573.5bUS$165.0bUS$2.7b20.9x209.9x3.5x
Sat, 25 Mar 2023US$572.3bUS$225.7bUS$2.3b22.6x245.5x2.5x
Mon, 20 Feb 2023US$2.0tUS$462.1bUS$22.5b28.4x89.1x4.3x
Price to Earnings Ratio

89.1x


Total Market Cap: US$2.0tTotal Earnings: US$22.5bTotal Revenue: US$462.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.8x202420252026
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 42.1x which is lower than its 3-year average PE of 68.8x.
  • 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 Market0.52%
Tech2.46%
IT-1.43%
Internet Services and Infrastructure8.54%
Data Processing Services-7.62%
IT Consulting-9.09%
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 15.2%, which is lower than the prior year's growth of 19.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 34% 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 8.5% 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$95.7028.2%
+US$11.0b		n/aPS11.6x
NET CloudflareUS$185.1713.6%
+US$8.0b		4.9%PS30.1x
SNOW SnowflakeUS$172.9110.3%
+US$5.5b		-10.3%PS13.5x
MDB MongoDBUS$356.749.3%
+US$2.5b		21.8%PS12.5x
APLD Applied DigitalUS$36.1729.9%
+US$2.3b		357.3%PS38.3x

Latest News

SHOP
US$110.66
Shopify
7D
-0.5%
1Y
-13.3%
NET
US$185.17
Cloudflare
7D
13.6%
1Y
4.9%
FSLY
US$16.04
Fastly
7D
101.5%
1Y
101.3%
KD
US$11.34
Kyndryl Holdings
7D
-48.6%
1Y
-72.7%
VRSN
US$218.15
VeriSign
7D
-10.1%
1Y
-4.9%
ACN
US$222.05
Accenture
7D
-4.9%
1Y
-43.0%
IBM
US$259.52
International Business Machines
7D
-10.5%
1Y
0.1%
EPAM
US$163.12
EPAM Systems
7D
-8.1%
1Y
-39.1%

EPAM: GenAI Execution And M&A Integration Will Support A Higher Future Multiple

Narrative Update on EPAM Systems The analyst price target for EPAM Systems has shifted from $255 to $275, with analysts pointing to revised assumptions around slightly lower discount rates, higher modeled revenue growth, modestly adjusted profit margins, and a higher future P/E multiple, supported by recent sector upgrades and a series of price target increases across the Street. Analyst Commentary Recent Street research on EPAM Systems has tilted more positive, with several bullish analysts raising price targets and pointing to potential for better execution and improved sentiment around IT services over the medium term.
CTSH
US$65.83
Cognizant Technology Solutions
7D
-14.3%
1Y
-26.5%
SNOW
US$172.91
Snowflake
7D
10.3%
1Y
-10.3%

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

Narrative Update: Snowflake Analysts have lifted their fair value estimate for Snowflake to US$366.83 from US$334.94. This reflects updated assumptions for slightly lower revenue growth, a modestly reduced discount rate, a higher future P/E multiple, and increased AI consumption potential tied to Snowflake's new US$200m partnership with OpenAI and broader AI focused research commentary.
VNET
US$14.03
VNET Group
7D
38.6%
1Y
19.4%

VNET: Higher 2025 Guidance Will Likely Not Justify Rich Earnings Multiple

Analysts have lifted their price target for VNET Group to US$6.51 from US$5.74, reflecting updated assumptions that combine a slightly higher discount rate, lower projected revenue growth, improved profit margins, and a reduced future P/E of about 29x compared with roughly 98x previously. What's in the News VNET Group raised its earnings guidance for the full year 2025, signaling updated expectations for its financial performance.
CRWV
US$95.70
CoreWeave
7D
28.2%
1Y
n/a
GDDY
US$88.26
GoDaddy
7D
-8.2%
1Y
-58.5%
APLD
US$36.17
Applied Digital
7D
29.9%
1Y
357.3%

APLD: Long-Term Hyperscale Leases And Power Access Will Support Future AI Demand

Analysts have lifted their price target for Applied Digital by about US$1.57, citing stronger expected revenue growth, updated discount rate assumptions, and higher implied future P/E multiples, tempered by more conservative profit margin expectations and increased confidence in hyperscaler leasing momentum and AI infrastructure demand. Analyst Commentary Recent Street research on Applied Digital has been broadly constructive, with multiple firms updating price targets and initiating coverage around the company’s AI focused data center and hyperscaler leasing story.
MDB
US$356.74
MongoDB
7D
9.3%
1Y
21.8%

MDB: AI Workloads And Cloud Recurring Revenue Will Support Future Leadership Transition

Our updated fair value estimate for MongoDB moves to $525 from $550, as analysts factor in expectations for higher long term revenue growth, a richer future P/E multiple, and a lower discount rate, partially offset by more conservative profit margin assumptions. Analyst Commentary Recent Street research has generally tilted positive on MongoDB, with a series of higher price targets and reaffirmed positive ratings.
AKAM
US$104.61
Akamai Technologies
7D
14.3%
1Y
5.0%

AKAM: Heavy Security And Compute Investments Will Constrain Returns Despite AI Tailwinds

Analysts have kept their fair value estimate for Akamai Technologies steady at $69.00 while updating their assumptions to reflect lower discount rates, slightly higher revenue growth and profit margin expectations, and a modestly reduced future P/E multiple. These changes are supported by recent target hikes tied to AI infrastructure demand, growing security and compute exposure, and a perceived inflection in the shift from content delivery to a broader cloud and security platform.