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U.S. IT Industry Analysis

UpdatedJan 12, 2026
DataAggregated Company Financials
Companies129
  • 7D2.1%
  • 3M3.4%
  • 1Y20.1%
  • YTD4.1%

In the last week, the IT industry is up 4.1%, with Accenture leading the way, up 8.0%. In the same time, Cloudflare was down 6.8%. In the last 12 months, the industry was up 19%. 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
Mon, 12 Jan 2026US$1.1tUS$282.8bUS$21.0b30.9x52.2x3.9x
Wed, 10 Dec 2025US$1.1tUS$282.0bUS$21.0b30.9x52.2x3.9x
Fri, 07 Nov 2025US$1.1tUS$280.3bUS$20.1b31.2x55.3x4x
Sun, 05 Oct 2025US$1.1tUS$283.3bUS$20.1b33.2x54.5x3.9x
Tue, 02 Sep 2025US$988.2bUS$250.9bUS$19.3b32.7x51.2x3.9x
Thu, 31 Jul 2025US$971.9bUS$242.9bUS$17.7b26.7x54.9x4x
Sat, 28 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.3x4.2x
Mon, 26 May 2025US$930.5bUS$240.2bUS$16.9b29x54.9x3.9x
Wed, 23 Apr 2025US$786.6bUS$242.3bUS$18.5b32.6x42.5x3.2x
Fri, 21 Mar 2025US$888.3bUS$240.9bUS$19.2b43.9x46.2x3.7x
Sun, 16 Feb 2025US$1.0tUS$239.4bUS$18.2b44.8x57x4.3x
Tue, 14 Jan 2025US$855.5bUS$234.0bUS$16.5b37.4x52x3.7x
Thu, 12 Dec 2024US$899.4bUS$233.3bUS$16.4b45x54.9x3.9x
Sat, 09 Nov 2024US$820.1bUS$233.2bUS$16.1b46.9x50.9x3.5x
Mon, 07 Oct 2024US$806.1bUS$232.9bUS$17.8b43.3x45.4x3.5x
Wed, 04 Sep 2024US$761.2bUS$233.2bUS$17.5b38.4x43.4x3.3x
Fri, 02 Aug 2024US$751.2bUS$236.7bUS$17.7b29.2x42.5x3.2x
Sun, 30 Jun 2024US$710.2bUS$237.1bUS$17.2b27.9x41.3x3x
Tue, 28 May 2024US$707.2bUS$237.0bUS$17.2b28.2x41x3x
Thu, 25 Apr 2024US$734.3bUS$227.8bUS$13.7b24.2x53.4x3.2x
Sat, 23 Mar 2024US$776.8bUS$227.6bUS$14.6b22.3x53.3x3.4x
Mon, 19 Feb 2024US$831.3bUS$227.5bUS$14.2b23.4x58.5x3.7x
Wed, 17 Jan 2024US$799.2bUS$229.4bUS$12.9b21x61.8x3.5x
Fri, 15 Dec 2023US$778.2bUS$229.0bUS$12.8b20.3x60.8x3.4x
Sun, 12 Nov 2023US$685.6bUS$228.4bUS$12.6b20.9x54.2x3x
Tue, 10 Oct 2023US$670.6bUS$227.2bUS$6.5b22.4x103.7x3x
Thu, 07 Sep 2023US$706.9bUS$226.6bUS$6.8b23.1x103.9x3.1x
Sat, 05 Aug 2023US$680.8bUS$226.3bUS$6.4b24x106.1x3x
Mon, 03 Jul 2023US$679.5bUS$228.6bUS$6.1b23.6x111.5x3x
Wed, 31 May 2023US$655.3bUS$228.0bUS$5.8b23.7x113.9x2.9x
Fri, 28 Apr 2023US$581.3bUS$225.6bUS$2.7b21.2x212.9x2.6x
Sun, 26 Mar 2023US$572.2bUS$225.5bUS$2.3b22.6x245x2.5x
Tue, 21 Feb 2023US$2.0tUS$462.1bUS$22.5b28.4x89.1x4.3x
Thu, 19 Jan 2023US$2.0tUS$458.0bUS$39.1b28.7x50.5x4.3x
Price to Earnings Ratio

50.5x


Total Market Cap: US$2.0tTotal Earnings: US$39.1bTotal Revenue: US$458.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.9x202420252026
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 52.2x which is lower than its 3-year average PE of 68.9x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 3.9x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 19% per year over the last three years,
  • Revenues have also declined 15% 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 Market1.24%
Tech0.016%
IT2.08%
IT Consulting4.43%
Data Processing Services1.11%
Internet Services and Infrastructure-0.54%
Industry PE
  • Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 30.9x.
    • Analysts are expecting annual earnings growth of 9.4%, which is lower than the prior year's growth of 19.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 29% 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 9.4% 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
ACN AccentureUS$280.678.0%
+US$12.7b		-19.8%PE22.7x
IBM International Business MachinesUS$304.224.4%
+US$11.9b		38.4%PE35.9x
SHOP ShopifyUS$164.484.6%
+US$9.5b		58.6%PE120.2x
APLD Applied DigitalUS$37.6834.0%
+US$2.5b		354.5%PS39.9x
CTSH Cognizant Technology SolutionsUS$85.264.9%
+US$1.9b		13.2%PE19.3x

Latest News

ACN
US$280.67
Accenture
7D
8.0%
1Y
-19.8%
APLD
US$37.68
Applied Digital
7D
34.0%
1Y
354.5%
TWLO
US$131.39
Twilio
7D
-5.0%
1Y
21.6%
SNOW
US$219.09
Snowflake
7D
1.1%
1Y
34.9%

SNOW: AI Demand And Expanded Partnerships Will Support Long-Term Earnings Power

Narrative Update on Snowflake Analysts have nudged our Snowflake fair value estimate slightly higher from US$281.73 to US$283.52, citing recent price target increases toward US$300 to US$325 that reference robust AI driven demand, expanding margins, and what they view as a constructive setup into 2025. Analyst Commentary Recent Street research around Snowflake has been broadly constructive, with several bullish analysts lifting price targets into the US$295 to US$325 range and one upgrade framing current levels as a potential entry point after a weaker Q3 reaction.
IT
US$248.02
Gartner
7D
4.6%
1Y
-49.3%

IT: Ongoing Buybacks Will Support Future Upside Despite Recent Impairment Charges

Analysts have made modest updates to their price target for Gartner, keeping fair value effectively steady at about $283.73. They are fine-tuning assumptions such as discount rate, revenue growth, profit margin and future P/E to reflect slightly adjusted expectations rather than a major shift in outlook.
CTSH
US$85.26
Cognizant Technology Solutions
7D
4.9%
1Y
13.2%
NET
US$182.78
Cloudflare
7D
-6.8%
1Y
62.3%

NET: AI And Security Hype Will Likely Magnify Future Outage Risks

Analysts have trimmed their fair value estimate for Cloudflare from US$135.41 to US$132.40, citing a mix of higher projected profitability, faster revenue growth, a lower assumed future P/E multiple, and recent Street research that highlights both strong Q3 execution and growing interest in Cloudflare's role at the intersection of AI and security. Analyst Commentary Recent Street research on Cloudflare points to strong Q3 execution, with several firms lifting their price targets after what they describe as an impressive quarter.
MGRT
US$6.10
Mega Fortune
7D
-15.3%
1Y
n/a
WIX
US$95.84
Wix.com
7D
-5.1%
1Y
-56.2%

WIX: AI And Base44 Spending Will Set Up Long Term Upside

Analysts have trimmed their price targets on Wix.com, with our fair value estimate moving from $254.14 to $210.00. They are factoring in higher investment spending that is pressuring margins and free cash flow in the near term, while still recognizing the company’s AI and Base44 initiatives as important long-term drivers.
FSLY
US$9.31
Fastly
7D
-8.6%
1Y
3.7%

FSLY: Security Traction Will Support Turnaround Despite Ongoing CDN Pricing Pressure

Analysts lifted their fair value estimate for Fastly from $10.00 to $14.00, citing recent security revenue traction and operational improvements, while still flagging pricing pressure and the need for early wins to continue in the core CDN business. Analyst Commentary Recent commentary has focused on a mix of progress in security offerings and ongoing pressure in the core CDN business.
OKTA
US$92.23
Okta
7D
10.3%
1Y
9.3%
IBM
US$304.22
International Business Machines
7D
4.4%
1Y
38.4%

IBM: Quantum Potential And Software Execution Will Shape Returns Through Workforce Shift

Analysts made only a modest adjustment to their price targets on International Business Machines, balancing mixed views on near term software momentum with the longer term potential in areas such as quantum computing and higher margin revenue streams. Analyst Commentary Recent research paints a mixed picture for International Business Machines, with some analysts more focused on long term optionality in quantum and others keying in on near term software execution and valuation.
SHOP
US$164.48
Shopify
7D
4.6%
1Y
58.6%

SHOP: Lofty Multiples And Soft Cash Flow Will Restrain Near-Term Upside

Analysts increased their Shopify fair value estimate from about US$116 to roughly US$139, citing stronger expected revenue growth, a slightly higher assumed future P/E, and recent price target hikes across the Street. They attribute these changes to what they view as solid Q3 execution, despite some concerns around valuation and free cash flow.
GDDY
US$113.54
GoDaddy
7D
-4.2%
1Y
-41.1%

GDDY: AI And Identity Initiatives Will Support Higher Margin Efficiency

Analysts have nudged their fair value estimate for GoDaddy up from $134.00 to $145.00, reflecting updated assumptions for slightly higher revenue growth and profit margins. They still acknowledge recent Street price target reductions tied to mixed near term guidance and a desire for clearer visibility on the growth and margin outlook.
HKIT
US$2.08
Hitek Global
7D
-8.0%
1Y
52.9%
UBXG
US$1.93
U-BX Technology
7D
-7.2%
1Y
-42.4%