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U.S. IT Industry Analysis

UpdatedFeb 07, 2026
DataAggregated Company Financials
Companies124
  • 7D-7.0%
  • 3M-11.6%
  • 1Y-10.8%
  • YTD-9.2%

Over the last 7 days, the IT industry has dropped 13%, driven by a pullback from Shopify of 15%. Meanwhile, DigitalOcean Holdings actually outperformed within the industry, gaining 14% in the last week. The industry has fallen 14% in the last year. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 07 Feb 2026US$891.6bUS$255.1bUS$22.6b26.5x39.4x3.5x
Mon, 05 Jan 2026US$1.1tUS$282.9bUS$20.9b28.8x50.4x3.7x
Wed, 03 Dec 2025US$1.1tUS$281.6bUS$20.9b28.6x51.4x3.8x
Fri, 31 Oct 2025US$1.2tUS$283.7bUS$21.7b29.3x53.4x4.1x
Sun, 28 Sep 2025US$1.0tUS$251.9bUS$19.1b31.3x53.1x4x
Tue, 26 Aug 2025US$950.3bUS$250.5bUS$19.3b31x49.4x3.8x
Thu, 24 Jul 2025US$998.7bUS$241.7bUS$17.3b28.2x57.6x4.1x
Sat, 21 Jun 2025US$995.9bUS$240.5bUS$17.1b27x58.3x4.1x
Mon, 19 May 2025US$943.4bUS$239.9bUS$16.9b29.7x55.8x3.9x
Wed, 16 Apr 2025US$814.3bUS$242.3bUS$18.5b33.9x44x3.4x
Fri, 14 Mar 2025US$877.6bUS$240.0bUS$18.7b43.8x47x3.7x
Sun, 09 Feb 2025US$981.1bUS$234.2bUS$16.3b48.1x60.3x4.2x
Tue, 07 Jan 2025US$871.5bUS$234.1bUS$16.5b48.4x53x3.7x
Thu, 05 Dec 2024US$888.6bUS$233.2bUS$16.4b45.3x54.3x3.8x
Sat, 02 Nov 2024US$772.8bUS$233.1bUS$15.9b45.6x48.5x3.3x
Mon, 30 Sep 2024US$796.7bUS$233.8bUS$17.8b40.3x44.7x3.4x
Wed, 28 Aug 2024US$753.9bUS$233.1bUS$17.4b34.3x43.2x3.2x
Fri, 26 Jul 2024US$729.1bUS$237.1bUS$17.4b29.2x41.9x3.1x
Sun, 23 Jun 2024US$703.6bUS$237.1bUS$17.2b27.8x41x3x
Tue, 21 May 2024US$716.6bUS$236.8bUS$17.3b25.8x41.5x3x
Thu, 18 Apr 2024US$723.5bUS$227.7bUS$13.7b24.3x52.6x3.2x
Sat, 16 Mar 2024US$808.5bUS$227.7bUS$14.4b22.3x56.2x3.6x
Mon, 12 Feb 2024US$856.9bUS$226.8bUS$13.1b22.7x65.4x3.8x
Wed, 10 Jan 2024US$779.9bUS$229.4bUS$12.9b20x60.3x3.4x
Fri, 08 Dec 2023US$751.4bUS$229.0bUS$12.8b21.1x58.7x3.3x
Sun, 05 Nov 2023US$679.6bUS$228.3bUS$12.1b19.8x56x3x
Tue, 03 Oct 2023US$662.3bUS$227.2bUS$6.5b23.4x102.4x2.9x
Thu, 31 Aug 2023US$691.5bUS$226.3bUS$6.6b21.7x104.4x3.1x
Sat, 29 Jul 2023US$691.2bUS$228.6bUS$6.2b23.3x111.4x3x
Mon, 26 Jun 2023US$661.8bUS$228.6bUS$6.1b23.4x107.8x2.9x
Wed, 24 May 2023US$638.3bUS$229.1bUS$5.1b24x124.7x2.8x
Fri, 21 Apr 2023US$584.1bUS$225.7bUS$2.7b22.8x214.5x2.6x
Sun, 19 Mar 2023US$906.7bUS$347.5b-US$7,069,796,349.0024x-128.3x2.6x
Tue, 14 Feb 2023US$2.0tUS$460.4bUS$23.2b27.1x88.3x4.4x
Price to Earnings Ratio

88.3x


Total Market Cap: US$2.0tTotal Earnings: US$23.2bTotal Revenue: US$460.4bTotal 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 40.1x which is lower than its 3-year average PE of 68.9x.
  • 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 Market-0.12%
Tech-1.48%
IT-6.98%
IT Consulting-5.54%
Data Processing Services-8.03%
Internet Services and Infrastructure-8.75%
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 16.0%, which is lower than the prior year's growth of 20.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% 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
DOCN DigitalOcean HoldingsUS$62.9213.9%
+US$701.7m		40.5%PE22.9x
OKTA OktaUS$86.742.7%
+US$400.5m		-10.6%PE78.8x
GDS GDS HoldingsUS$46.484.0%
+US$358.7m		70.4%PE55.5x
APLD Applied DigitalUS$34.953.2%
+US$299.2m		348.7%PS37x
VNET VNET GroupUS$11.206.4%
+US$180.2m		24.4%PS2.2x

Latest News

SNOW
US$168.43
Snowflake
7D
-12.6%
1Y
-8.5%
CTSH
US$77.08
Cognizant Technology Solutions
7D
-6.1%
1Y
-10.6%
VRSN
US$224.17
VeriSign
7D
-8.2%
1Y
1.3%
ASGN
US$52.50
ASGN
7D
0.8%
1Y
-33.4%

ASGN: AI Services And Automation Risks Will Shape Fairly Valued Shares

Narrative Update on ASGN The updated analyst price target for ASGN moves higher by about $4 to $52.83. This reflects analysts' revised assumptions for slightly stronger revenue growth, modestly higher profit margins, a small adjustment to the future P/E, and a lower discount rate following recent research that highlights both AI driven opportunities and automation risks.
DXC
US$15.20
DXC Technology
7D
5.3%
1Y
-27.2%
DOCN
US$62.92
DigitalOcean Holdings
7D
13.9%
1Y
40.5%

DOCN: AI Partnerships And 2026 Software Setup Will Shape A Measured Outlook

Analysts have raised their fair value target for DigitalOcean to about US$56.17 from US$54, reflecting updated views on discount rates, long term revenue growth, profit margins and future P/E multiples in light of recent price target increases from major firms. Analyst Commentary Recent research updates on DigitalOcean reflect a mix of optimism on the setup for software names in 2026 and ongoing questions about execution and valuation risk.
APLD
US$34.95
Applied Digital
7D
3.2%
1Y
348.7%

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$344.35
MongoDB
7D
-7.3%
1Y
23.9%

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.
IT
US$156.33
Gartner
7D
-25.4%
1Y
-70.5%

Benign Growth For Gartner, Inc. (NYSE:IT) Underpins Stock's 32% Plummet

Feb 04
Benign Growth For Gartner, Inc. (NYSE:IT) Underpins Stock's 32% Plummet
IBM
US$298.93
International Business Machines
7D
-2.5%
1Y
18.5%

IBM: Broad Price Reset Will Highlight Confluent Deal And AI Initiatives

The analyst price target for International Business Machines has been raised from US$350 to US$390, reflecting updated assumptions around discount rates, margins and future P/E, alongside a broad wave of recent price target increases from multiple research firms. Analyst Commentary Bullish analysts have been lifting their price targets on International Business Machines in quick succession, with several moves clustered around the same dates.
SHOP
US$112.05
Shopify
7D
-14.6%
1Y
-4.6%

SHOP: AI Efficiencies And Q4 Execution Will Support Higher Earnings Power

The analyst fair value estimate for Shopify has increased from US$200 to about US$218, reflecting updated assumptions on revenue growth, profitability and future P/E following recent research highlighting Q4 fundamentals, AI driven operating leverage and a series of price target revisions and rating changes across the Street. Analyst Commentary Street research around Shopify has skewed constructive, with several bullish analysts revisiting their models and resetting price targets and ratings after recent earnings and product updates.
OKTA
US$86.74
Okta
7D
2.7%
1Y
-10.6%
GDS
US$46.48
GDS Holdings
7D
4.0%
1Y
70.4%

GDS: 2025 Leasing And 2026 Installs Will Support Earnings Upside

Narrative Update The analyst price target for GDS Holdings is adjusted to US$68.63 from US$63.03 as analysts factor in higher modeled revenue growth, improved profit margins, a lower discount rate, and a reduced future P/E assumption supported by recent Street research that includes mixed 3Q25 results with maintained 2025 guidance and a new Outperform initiation. Analyst Commentary Bullish analysts are signaling constructive sentiment on GDS Holdings, even where price targets are adjusted, with the focus staying on execution against guidance and long term growth potential.
ACN
US$240.62
Accenture
7D
-8.7%
1Y
-37.7%

ACN: GenAI Modernization Partnerships And Cannibalization Risks Will Steer Future Returns

Analysts have nudged their fair value estimate for Accenture higher to about $292, a move of roughly $3, as recent research highlights renewed interest in the stock, supported by fresh coverage and upward price target revisions tied to GenAI driven enterprise modernization potential. Analyst Commentary Bullish Takeaways Bullish analysts see Accenture as a relatively attractive way to gain exposure to GenAI driven enterprise modernization, with the current valuation framed as reasonable versus its own history.
KD
US$23.49
Kyndryl Holdings
7D
2.1%
1Y
-43.8%

KD: Agentic AI And Expanded Buybacks Will Support Future Upside

Analysts left their fair value estimate for Kyndryl Holdings essentially unchanged at US$37.60. This reflects only small tweaks to assumptions such as the discount rate, long term revenue growth, profit margin, and future P/E that did not materially alter their overall view.
VNET
US$11.20
VNET Group
7D
6.4%
1Y
24.4%

VNET: Private REIT Project Will Support Future Data Center Expansion

Analysts have nudged their price target on VNET Group higher, lifting fair value from about US$14.74 to roughly US$15.07, citing updated assumptions for revenue growth, profit margins and future P/E levels. What's in the News VNET Group raised its full year 2025 earnings guidance, with total net revenues now expected in the range of RMB 9,550m to RMB 9,867m, described as representing 16% to 19% year over year growth (Key Developments).