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U.S. IT Industry Analysis

UpdatedMar 27, 2026
DataAggregated Company Financials
Companies118
  • 7D-3.8%
  • 3M-21.4%
  • 1Y-4.9%
  • YTD-17.8%

Over the last 7 days, the IT industry has dropped 3.8%, driven by declines in Shopify and International Business Machines of 5.7% and 3.5%, respectively. On the other hand Akamai Technologies is actually up 6.6%. However, the industry is down 4.9% over the past 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
Fri, 27 Mar 2026US$849.8bUS$259.6bUS$21.6b19.4x39.4x3.3x
Sun, 22 Feb 2026US$882.9bUS$256.7bUS$21.7b21.5x40.8x3.4x
Tue, 20 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.5x4.2x
Thu, 18 Dec 2025US$1.1tUS$282.0bUS$21.0b29.9x51.5x3.8x
Sat, 15 Nov 2025US$1.1tUS$280.7bUS$20.5b30.7x51.3x3.7x
Mon, 13 Oct 2025US$1.1tUS$282.5bUS$20.0b30.7x53.2x3.8x
Wed, 10 Sep 2025US$998.7bUS$250.9bUS$19.3b29x51.7x4x
Fri, 08 Aug 2025US$977.0bUS$244.2bUS$18.6b27.7x52.4x4x
Sun, 06 Jul 2025US$1.0tUS$241.7bUS$17.4b29.5x59.3x4.3x
Tue, 03 Jun 2025US$947.6bUS$240.3bUS$17.0b28.9x55.6x3.9x
Thu, 01 May 2025US$859.9bUS$242.4bUS$18.0b29.9x47.8x3.5x
Sat, 29 Mar 2025US$885.6bUS$242.8bUS$18.3b35.6x48.4x3.6x
Mon, 24 Feb 2025US$976.6bUS$239.7bUS$18.2b40.2x53.8x4.1x
Wed, 22 Jan 2025US$872.6bUS$234.1bUS$16.3b42.9x53.5x3.7x
Fri, 20 Dec 2024US$860.6bUS$233.2bUS$16.4b43.6x52.5x3.7x
Sun, 17 Nov 2024US$827.3bUS$232.8bUS$16.3b45.6x50.6x3.6x
Tue, 15 Oct 2024US$823.0bUS$232.9bUS$17.8b43.4x46.3x3.5x
Thu, 12 Sep 2024US$765.8bUS$233.2bUS$17.5b35.6x43.6x3.3x
Sat, 10 Aug 2024US$717.7bUS$232.7bUS$17.5b28.5x41x3.1x
Mon, 08 Jul 2024US$718.8bUS$236.9bUS$17.2b26.9x41.8x3x
Wed, 05 Jun 2024US$669.8bUS$237.1bUS$17.3b27.3x38.8x2.8x
Fri, 03 May 2024US$703.6bUS$232.4bUS$14.5b23.9x48.6x3x
Sun, 31 Mar 2024US$783.3bUS$227.8bUS$13.8b24.5x56.6x3.4x
Tue, 27 Feb 2024US$828.5bUS$227.5bUS$14.2b22.8x58.3x3.6x
Thu, 25 Jan 2024US$824.1bUS$229.4bUS$12.9b22.8x63.7x3.6x
Sat, 23 Dec 2023US$791.8bUS$229.5bUS$12.8b20.8x61.8x3.4x
Mon, 20 Nov 2023US$722.2bUS$228.5bUS$12.7b20.9x56.9x3.2x
Wed, 18 Oct 2023US$665.1bUS$227.2bUS$6.5b20.5x102.8x2.9x
Fri, 15 Sep 2023US$693.9bUS$226.6bUS$6.8b23x102.2x3.1x
Sun, 13 Aug 2023US$665.1bUS$226.3bUS$6.7b22.8x99.6x2.9x
Tue, 11 Jul 2023US$674.6bUS$228.6bUS$6.1b25.1x110.7x3x
Thu, 08 Jun 2023US$675.2bUS$228.2bUS$5.9b24.2x114x3x
Sat, 06 May 2023US$604.1bUS$232.7bUS$5.8b23.4x103.3x2.6x
Mon, 03 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 66.2x202420252026
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 39.4x which is lower than its 3-year average PE of 66.2x.
  • 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 108% 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-1.62%
Tech-3.55%
IT-3.81%
IT Consulting-3.04%
Internet Services and Infrastructure-4.53%
Data Processing Services-6.72%
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 13.1%, 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 26% 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 8.3% 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
AKAM Akamai TechnologiesUS$117.256.6%
+US$1.1b		43.8%PE37.6x
VRSN VeriSignUS$250.804.7%
+US$1.0b		-1.5%PE27.9x
DOCN DigitalOcean HoldingsUS$85.620.3%
+US$914.4m		141.0%PE33.8x
FSLY FastlyUS$28.598.1%
+US$324.9m		327.4%PS7x
ASGN ASGNUS$39.9012.8%
+US$187.1m		-37.9%PE14.5x

Latest News

ACN
US$196.42
Accenture
7D
-3.5%
1Y
-36.3%

ACN: GenAI Partnerships And AI Adoption Will Drive Enterprise Modernization

Accenture's fair value estimate is adjusted from about $283 to $252, as analysts temper revenue growth and profit margin assumptions and apply a lower future P/E multiple in response to a broad wave of reduced price targets, despite generally constructive views on the latest quarterly performance. Analyst Commentary Recent Street research around Accenture clusters around a common theme, with many firms trimming price targets while still generally acknowledging solid execution and a credible long term story in areas like GenAI and digital transformation.
DOX
US$65.77
Amdocs
7D
2.2%
1Y
-28.5%
TSSI
US$12.72
TSS
7D
16.6%
1Y
49.5%
AKAM
US$117.25
Akamai Technologies
7D
6.6%
1Y
43.8%
DOCN
US$85.62
DigitalOcean Holdings
7D
0.3%
1Y
141.0%
SHOP
US$115.43
Shopify
7D
-5.7%
1Y
12.6%
MDB
US$241.28
MongoDB
7D
-10.7%
1Y
27.9%
VRSN
US$250.80
VeriSign
7D
4.7%
1Y
-1.5%

VRSN: Steady Domain Base And Capital Returns Will Support Future Upside

Analysts have modestly reduced their average price target for VeriSign, with Citi cutting its target by $57 while others made small upward adjustments as they factor in a 3% year over year increase in the. com domain base, yet they still view the shares as fairly valued overall.
IBM
US$241.67
International Business Machines
7D
-3.5%
1Y
-1.8%
SNOW
US$162.33
Snowflake
7D
-7.5%
1Y
3.4%

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$28.59
Fastly
7D
8.1%
1Y
327.4%
ASGN
US$39.90
ASGN
7D
12.8%
1Y
-37.9%

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$210.13
Cloudflare
7D
-5.1%
1Y
77.2%

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.
CTSH
US$60.76
Cognizant Technology Solutions
7D
-2.1%
1Y
-19.9%
KD
US$12.82
Kyndryl Holdings
7D
3.6%
1Y
-60.3%
GDS
US$41.99
GDS Holdings
7D
-5.7%
1Y
60.5%