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U.S. IT Industry Analysis

UpdatedApr 09, 2026
DataAggregated Company Financials
Companies112
  • 7D0.6%
  • 3M-21.0%
  • 1Y2.6%
  • YTD-17.3%

Last week, the IT industry hasn't moved much but CoreWeave is up 13% in that time. In line with that, the industry has also been flat over the past 12 months. Looking forward, earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 09 Apr 2026US$848.1bUS$259.7bUS$21.6b20.2x39.3x3.3x
Sat, 07 Mar 2026US$889.3bUS$258.0bUS$21.5b21.3x41.4x3.4x
Mon, 02 Feb 2026US$998.8bUS$254.8bUS$22.5b27.6x44.3x3.9x
Wed, 31 Dec 2025US$1.1tUS$283.0bUS$20.9b30x52x3.8x
Fri, 28 Nov 2025US$1.1tUS$281.4bUS$20.9b27.8x50.6x3.8x
Sun, 26 Oct 2025US$1.1tUS$283.6bUS$22.0b30.7x51.6x4x
Tue, 23 Sep 2025US$1.0tUS$251.0bUS$19.3b32.1x53.3x4.1x
Thu, 21 Aug 2025US$940.0bUS$250.3bUS$19.3b29.7x48.8x3.8x
Sat, 19 Jul 2025US$999.0bUS$241.7bUS$17.3b28x57.6x4.1x
Mon, 16 Jun 2025US$977.0bUS$240.5bUS$17.1b28.6x57.2x4.1x
Wed, 14 May 2025US$910.0bUS$239.2bUS$16.7b37.3x54.6x3.8x
Fri, 11 Apr 2025US$837.7bUS$242.3bUS$18.5b31.8x45.4x3.5x
Sun, 09 Mar 2025US$917.2bUS$239.9bUS$18.3b43.7x50.1x3.8x
Tue, 04 Feb 2025US$966.2bUS$234.3bUS$16.0b43.4x60.6x4.1x
Thu, 02 Jan 2025US$855.8bUS$234.1bUS$16.5b46.7x52x3.7x
Sat, 30 Nov 2024US$894.5bUS$233.1bUS$16.3b45.3x55x3.8x
Mon, 28 Oct 2024US$792.0bUS$232.9bUS$15.7b43.6x50.3x3.4x
Wed, 25 Sep 2024US$785.2bUS$233.3bUS$17.5b39.6x44.9x3.4x
Fri, 23 Aug 2024US$760.6bUS$233.0bUS$17.4b33.6x43.6x3.3x
Sun, 21 Jul 2024US$739.1bUS$236.9bUS$17.2b28.9x43.1x3.1x
Tue, 18 Jun 2024US$684.8bUS$237.2bUS$17.3b27x39.7x2.9x
Thu, 16 May 2024US$711.9bUS$236.9bUS$16.7b24.5x42.6x3x
Sat, 13 Apr 2024US$752.7bUS$227.8bUS$13.7b25x54.7x3.3x
Mon, 11 Mar 2024US$812.2bUS$227.8bUS$14.3b23.9x56.6x3.6x
Wed, 07 Feb 2024US$816.5bUS$227.1bUS$12.9b20x63.1x3.6x
Fri, 05 Jan 2024US$757.4bUS$229.5bUS$12.8b20.2x59x3.3x
Sun, 03 Dec 2023US$761.8bUS$228.9bUS$12.7b21.2x59.8x3.3x
Tue, 31 Oct 2023US$624.2bUS$227.8bUS$11.4b18.3x54.8x2.7x
Thu, 28 Sep 2023US$662.2bUS$226.6bUS$6.8b24.5x97.7x2.9x
Sat, 26 Aug 2023US$674.4bUS$226.3bUS$6.6b21.2x101.9x3x
Mon, 24 Jul 2023US$693.0bUS$228.6bUS$6.2b25.5x111.7x3x
Wed, 21 Jun 2023US$688.0bUS$228.2bUS$5.9b23.9x116.3x3x
Fri, 19 May 2023US$640.1bUS$229.7bUS$6.5b23x99.2x2.8x
Sun, 16 Apr 2023US$588.9bUS$225.6bUS$2.5b23.6x239.4x2.6x
Price to Earnings Ratio

239.4x


Total Market Cap: US$588.9bTotal Earnings: US$2.5bTotal Revenue: US$225.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 63.7x202420252026
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 39.3x which is lower than its 3-year average PE of 63.7x.
  • 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 grown 106% 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 Market2.97%
Tech3.98%
IT0.58%
Internet Services and Infrastructure2.17%
Data Processing Services1.76%
IT Consulting-0.96%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.4x.
    • Analysts are expecting annual earnings growth of 13.7%, 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 7.7% 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$88.9013.3%
+US$5.5b		82.3%PS9.1x
SHOP ShopifyUS$120.101.3%
+US$2.1b		31.4%PE127.2x
NET CloudflareUS$211.252.8%
+US$2.0b		87.7%PS34.3x
VRSN VeriSignUS$270.908.0%
+US$1.8b		10.7%PE30.1x
APLD Applied DigitalUS$27.7913.5%
+US$922.6m		403.4%PS29.4x

Latest News

ACN
US$193.84
Accenture
7D
-1.6%
1Y
-35.4%
CRWV
US$88.90
CoreWeave
7D
13.3%
1Y
82.3%

CoreWeave: Slew Of Positive Updates (Rating Upgrade)

Apr 09
APLD
US$27.79
Applied Digital
7D
13.5%
1Y
403.4%
VRSN
US$270.90
VeriSign
7D
8.0%
1Y
10.7%

VRSN: Steady Dot Com Base And Capital Returns Will Shape Future Confidence

Analysts have raised their fair value estimate for VeriSign to $280.75 from $276.50, reflecting updated assumptions on revenue growth, discount rate, profit margin, and future P/E. Analyst Commentary Recent Street research on VeriSign shows both supportive and cautious views around the stock's valuation and execution, reflected in price target revisions in different directions over time.
EPAM
US$129.99
EPAM Systems
7D
-3.8%
1Y
-18.2%
DOCN
US$89.38
DigitalOcean Holdings
7D
1.9%
1Y
191.4%
KC
US$14.63
Kingsoft Cloud Holdings
7D
5.3%
1Y
12.7%

KC: Governance Reforms And Profitability Outlook Will Support Future Upside Potential

Analysts have raised their price target on Kingsoft Cloud Holdings to $22.87 from $21.10, citing updated assumptions for revenue growth of 26.10%, a profit margin of 7.80%, a discount rate of 10.85% and a future P/E of 53.22x. What's in the News Proposed amendments to the articles of association aim to align Kingsoft Cloud Holdings with Hong Kong Core Shareholder Protection Standards, including allowing shareholders to attend general meetings virtually and vote electronically (Key Developments).
OKTA
US$76.04
Okta
7D
-3.9%
1Y
-25.3%

OKTA: AI Agent Identity Demand And 90 Day Catalyst Watch Will Drive Repricing

Narrative Update On Okta The analyst price target has been reset from about $112.55 to roughly $100.93, as analysts factor in mixed target revisions across the Street alongside expectations for steadier revenue growth, slightly higher margins, and a lower future P/E multiple following Okta's recent Q4 results and its AI identity positioning. Analyst Commentary Street research on Okta clusters around two themes: how fast growth can improve from here, and what investors should pay for that growth as market multiples reset.
WIX
US$74.38
Wix.com
7D
-9.2%
1Y
-52.2%
IBM
US$241.74
International Business Machines
7D
-0.6%
1Y
2.7%

International Business Machines (IBM): The "Blue Chip" Transformation into the AI Hybrid Backbone

International Business Machines (IBM) , the foundational architect of the computing age, closed the April 2, 2026, session at $248.16 USD on the NYSE. As of today, April 6, 2026, IBM has shed its "legacy" label to emerge as a dominant force in the enterprise AI and hybrid cloud sectors.
SHOP
US$120.10
Shopify
7D
1.3%
1Y
31.4%

Shopify: Exploit Misinformed AI Selloff For 20% Annual Returns (Upgrade)

Apr 06
IT
US$149.40
Gartner
7D
-3.5%
1Y
-63.2%

IT: Future Lawsuit Risks Will Outweigh Support From Expanded Buybacks

Analysts have trimmed their price target on Gartner from $150 to $140, citing updated assumptions around discount rates, revenue growth, profit margins, and future P/E that change their overall valuation view. What's in the News A securities fraud class action lawsuit has been filed against Gartner covering investors who bought common stock between February 4, 2025 and February 2, 2026.
SNOW
US$149.99
Snowflake
7D
-2.0%
1Y
-0.8%

SNOW: AI Partnerships And Q4 Execution Will Support Premium Multiple

Narrative Update The analyst price target for Snowflake has been reset lower, with the fair value estimate moving from $181.76 to $176.00 as analysts balance slightly softer modeled revenue growth and a higher discount rate against Q4 AI momentum, ongoing AI partnerships, and generally supportive long term views reflected in refreshed targets across the Street. Analyst Commentary Research commentary on Snowflake has become more mixed, with many firms trimming price targets even as they acknowledge solid Q4 execution, AI traction, and what they describe as healthy forward indicators.
NET
US$211.25
Cloudflare
7D
2.8%
1Y
87.7%

NET: AI Security Hype Will Outrun Real Platform Monetization Progress

Cloudflare's fair value estimate has shifted from $145.00 to about $149.16 as analysts weigh mixed price target changes, a modestly higher discount rate, and slightly stronger expectations for revenue growth and profit margins, while also pointing to broad cybersecurity sector commentary that questions recent selloffs tied to AI security headlines. Analyst Commentary Recent research on Cloudflare highlights a split in views, with some firms pointing to potential upside tied to cybersecurity and AI infrastructure themes, while a separate group of bearish analysts is more focused on valuation and execution risks following the stock's run and sector volatility.
GDS
US$40.76
GDS Holdings
7D
-2.2%
1Y
109.8%

GDS: Higher Control Concentration And Costly Preferred Shares Will Pressure Shares

Analysts have raised their price target on GDS Holdings by roughly $3, reflecting updated views on fair value, growth assumptions, and future P/E expectations, even as projected profit margins are revised lower. What's in the News GDS issued earnings guidance for 2026, with total revenues expected in a range of RMB 12,400 million to RMB 12,900 million, which implies a projected year on year change of roughly 8.5% to 12.8% (Corporate Guidance).
MGRT
US$43.75
Mega Fortune
7D
191.9%
1Y
n/a