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U.S. IT Industry Analysis

UpdatedMar 02, 2026
DataAggregated Company Financials
Companies123
  • 7D-4.1%
  • 3M-17.5%
  • 1Y-13.5%
  • YTD-17.3%

Over the last 7 days, the IT industry has dropped 4.1%, driven by a pullback from CoreWeave of 14%. Meanwhile, International Business Machines actually outperformed within the industry, gaining 7.2% in the last week. Overall the industry is down 13% in 12 months. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 03 Mar 2026US$846.9bUS$257.8bUS$21.4b21.3x39.7x3.3x
Thu, 29 Jan 2026US$1.0tUS$252.7bUS$19.8b29x52.6x4.1x
Sat, 27 Dec 2025US$1.1tUS$283.0bUS$20.9b29.4x52.5x3.9x
Mon, 24 Nov 2025US$1.0tUS$281.3bUS$20.8b27.8x49.3x3.6x
Wed, 22 Oct 2025US$1.1tUS$282.5bUS$20.0b31.1x54.3x3.8x
Fri, 19 Sep 2025US$1.0tUS$251.0bUS$19.3b33.6x52.2x4x
Sun, 17 Aug 2025US$941.9bUS$250.3bUS$19.3b29.8x48.9x3.8x
Tue, 15 Jul 2025US$962.6bUS$241.7bUS$17.4b28.3x55.5x4x
Thu, 12 Jun 2025US$1.0tUS$240.4bUS$17.1b29.8x58.6x4.2x
Sat, 10 May 2025US$872.1bUS$239.1bUS$16.7b30.7x52.3x3.6x
Mon, 07 Apr 2025US$779.7bUS$242.3bUS$18.5b30.9x42.2x3.2x
Wed, 05 Mar 2025US$931.5bUS$240.0bUS$18.1b42x51.5x3.9x
Fri, 31 Jan 2025US$932.6bUS$234.3bUS$16.0b44x58.4x4x
Sun, 29 Dec 2024US$869.4bUS$234.7bUS$16.7b40.8x52.1x3.7x
Tue, 26 Nov 2024US$876.1bUS$233.1bUS$16.3b43.8x53.8x3.8x
Thu, 24 Oct 2024US$821.3bUS$232.8bUS$17.8b43.7x46.2x3.5x
Sat, 21 Sep 2024US$772.8bUS$233.3bUS$17.5b40.3x44.1x3.3x
Mon, 19 Aug 2024US$745.7bUS$232.8bUS$17.5b35.3x42.5x3.2x
Wed, 17 Jul 2024US$735.0bUS$236.9bUS$17.2b29.3x42.8x3.1x
Fri, 14 Jun 2024US$676.8bUS$237.2bUS$17.3b27.7x39.2x2.9x
Sun, 12 May 2024US$709.0bUS$236.9bUS$16.7b23.4x42.4x3x
Tue, 09 Apr 2024US$763.7bUS$227.8bUS$13.8b25x55.2x3.4x
Thu, 07 Mar 2024US$804.5bUS$227.7bUS$14.3b22.2x56.1x3.5x
Sat, 03 Feb 2024US$843.8bUS$229.9bUS$13.5b22.4x62.7x3.7x
Mon, 01 Jan 2024US$794.0bUS$229.5bUS$12.8b20.7x62x3.5x
Wed, 29 Nov 2023US$740.3bUS$228.6bUS$12.7b20.6x58.4x3.2x
Fri, 27 Oct 2023US$623.0bUS$227.8bUS$11.4b18.3x54.7x2.7x
Sun, 24 Sep 2023US$671.1bUS$226.6bUS$6.8b24x99x3x
Tue, 22 Aug 2023US$650.0bUS$226.1bUS$6.5b20.2x99.3x2.9x
Thu, 20 Jul 2023US$708.2bUS$228.6bUS$6.1b26.3x116.2x3.1x
Sat, 17 Jun 2023US$694.9bUS$228.3bUS$5.9b24.4x117.4x3x
Mon, 15 May 2023US$615.5bUS$229.7bUS$6.5b23.5x95x2.7x
Wed, 12 Apr 2023US$591.5bUS$225.6bUS$2.5b23.7x240.3x2.6x
Fri, 10 Mar 2023US$1.9tUS$463.9bUS$22.4b25.5x86.2x4.2x
Price to Earnings Ratio

86.2x


Total Market Cap: US$1.9tTotal Earnings: US$22.4bTotal Revenue: US$463.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.1x202420252026
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 39.7x which is lower than its 3-year average PE of 68.1x.
  • 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-0.57%
Tech-2.05%
IT-4.14%
Data Processing Services3.26%
Internet Services and Infrastructure-3.85%
IT Consulting-4.43%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.6x.
    • Analysts are expecting annual earnings growth of 12.7%, 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 28% over the next 5 years.
  • However this is lower than its past earnings growth rate of 43% 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
IBM International Business MachinesUS$239.377.2%
+US$15.8b		-4.3%PE21.2x
NET CloudflareUS$181.0213.0%
+US$7.3b		26.7%PS29.4x
SNOW SnowflakeUS$170.338.1%
+US$4.4b		-1.9%PS12.4x
SHOP ShopifyUS$119.382.1%
+US$3.2b		17.3%PE126.5x
ACN AccentureUS$205.932.4%
+US$2.9b		-40.3%PE16.6x

Latest News

DOCN
US$58.24
DigitalOcean Holdings
7D
-1.7%
1Y
44.3%
CRWV
US$78.05
CoreWeave
7D
-14.1%
1Y
n/a
IBM
US$239.37
International Business Machines
7D
7.2%
1Y
-4.3%
SNOW
US$170.33
Snowflake
7D
8.1%
1Y
-1.9%
ACN
US$205.93
Accenture
7D
2.4%
1Y
-40.3%

AI Infrastructure And Cloud Reinvention Will Transform This Consulting Leader Over The Next Decade

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SHOP
US$119.38
Shopify
7D
2.1%
1Y
17.3%
GDDY
US$88.22
GoDaddy
7D
0.5%
1Y
-50.4%
AKAM
US$97.64
Akamai Technologies
7D
-1.1%
1Y
20.5%
VRSN
US$228.05
VeriSign
7D
7.8%
1Y
-5.0%

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SHAZ
US$20.50
SharonAI Holdings
7D
-33.1%
1Y
n/a
NET
US$181.02
Cloudflare
7D
13.0%
1Y
26.7%
APLD
US$27.93
Applied Digital
7D
-6.9%
1Y
306.0%

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Applied Digital (APLD) is currently one of the most aggressive builders in the AI infrastructure gold rush, trading at $29.04 as of late February 2026. The company has successfully pivoted from its origins in crypto-mining to become a premier provider of high-performance computing (HPC) "AI Factories." Their massive Polaris Forge campus in North Dakota is now a cornerstone of the industry, having recently secured multi-billion-dollar, long-term lease agreements with hyperscalers and AI specialists like CoreWeave.
VNET
US$10.45
VNET Group
7D
-6.9%
1Y
4.9%

VNET: Private REIT Project Will Drive Future Data Center Expansion

Analysts have nudged their price target for VNET Group higher to $15.31 from $15.07. This reflects updated assumptions around discount rates, long term growth, margins and future P/E multiples.
MDB
US$325.01
MongoDB
7D
6.4%
1Y
25.5%

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Narrative Update: MongoDB Our fair value estimate for MongoDB has been revised to $340.43, reflecting a higher revenue growth assumption of 18.87% and a very large future P/E multiple, as analysts point to broadly supportive price target moves tied to Atlas growth expectations, AI driven demand, and a generally constructive multi year setup in recent research. Analyst Commentary Recent research on MongoDB continues to lean constructive, with several firms lifting their price targets and highlighting the company as a key beneficiary of database modernization and artificial intelligence related workloads.
TWLO
US$123.81
Twilio
7D
14.1%
1Y
6.4%

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The updated analyst price target for Twilio is now about $5 higher than before, as analysts factor in recent research that highlights strong Q4 execution, improving organic growth expectations, and a more balanced view on long term profitability and valuation multiples. Analyst Commentary Recent research on Twilio reflects a mix of optimism about execution and growth, alongside more conservative adjustments to valuation targets.
GDS
US$39.90
GDS Holdings
7D
-7.5%
1Y
25.3%

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Narrative Update Analysts have adjusted their fair value estimate for GDS Holdings from $48.30 to $52.73, citing updated assumptions on discount rates, long term revenue growth, profit margins, and future P/E expectations following recent mixed 3Q25 results and steady 2025 guidance. Analyst Commentary Bullish and bearish analysts are reading the same mixed 3Q25 update and 2025 guidance in very different ways, which shows up directly in how they think about fair value and upside versus execution risk.