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U.S. IT Industry Analysis

UpdatedFeb 25, 2026
DataAggregated Company Financials
Companies125
  • 7D-6.9%
  • 3M-20.0%
  • 1Y-18.2%
  • YTD-19.7%

Over the last 7 days, the IT industry has dropped 6.9%, driven by International Business Machines declining 11%. However, the industry is down 18% over the past year. Earnings are forecast to grow by 21% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 25 Feb 2026US$811.9bUS$256.7bUS$21.7b20.1x37.5x3.2x
Fri, 23 Jan 2026US$1.0tUS$252.7bUS$19.8b27.8x51.2x4x
Sun, 21 Dec 2025US$1.1tUS$282.7bUS$20.9b29.8x52.5x3.9x
Tue, 18 Nov 2025US$1.0tUS$281.4bUS$20.8b26.9x50.4x3.7x
Thu, 16 Oct 2025US$1.1tUS$282.6bUS$20.0b32.7x53.6x3.8x
Sat, 13 Sep 2025US$1.0tUS$250.9bUS$19.3b29x51.9x4x
Mon, 11 Aug 2025US$958.2bUS$249.4bUS$19.5b28.8x49.2x3.8x
Wed, 09 Jul 2025US$1.0tUS$241.7bUS$17.3b29.7x59.1x4.2x
Fri, 06 Jun 2025US$979.9bUS$240.5bUS$17.1b29.2x57.4x4.1x
Sun, 04 May 2025US$857.7bUS$238.4bUS$17.0b36.3x50.4x3.6x
Tue, 01 Apr 2025US$864.9bUS$242.4bUS$18.4b35.1x46.9x3.6x
Thu, 27 Feb 2025US$955.7bUS$239.7bUS$18.2b39.6x52.6x4x
Sat, 25 Jan 2025US$892.4bUS$234.1bUS$16.3b43.5x54.7x3.8x
Mon, 23 Dec 2024US$880.0bUS$234.7bUS$16.7b40.9x52.7x3.7x
Wed, 20 Nov 2024US$826.9bUS$232.8bUS$16.4b44.8x50.5x3.6x
Fri, 18 Oct 2024US$828.0bUS$232.8bUS$17.8b46.6x46.6x3.6x
Sun, 15 Sep 2024US$773.2bUS$233.3bUS$17.5b35.5x44.1x3.3x
Tue, 13 Aug 2024US$721.4bUS$232.7bUS$17.5b30.6x41.2x3.1x
Thu, 11 Jul 2024US$711.2bUS$236.9bUS$17.2b26.6x41.4x3x
Sat, 08 Jun 2024US$681.1bUS$237.2bUS$17.3b26.8x39.5x2.9x
Mon, 06 May 2024US$728.5bUS$236.9bUS$16.0b23.7x45.4x3.1x
Wed, 03 Apr 2024US$777.1bUS$227.8bUS$13.8b25.9x56.2x3.4x
Fri, 01 Mar 2024US$826.5bUS$227.7bUS$14.3b21.3x57.7x3.6x
Sun, 28 Jan 2024US$832.2bUS$230.1bUS$13.4b23.3x62.3x3.6x
Tue, 26 Dec 2023US$791.8bUS$229.5bUS$12.8b20.8x61.8x3.4x
Thu, 23 Nov 2023US$726.4bUS$228.5bUS$12.7b20.7x57.2x3.2x
Sat, 21 Oct 2023US$637.1bUS$227.2bUS$6.5b18.8x98.5x2.8x
Mon, 18 Sep 2023US$689.0bUS$226.6bUS$6.8b23.7x101.5x3x
Wed, 16 Aug 2023US$661.5bUS$226.0bUS$6.6b22x100.5x2.9x
Fri, 14 Jul 2023US$703.3bUS$228.7bUS$6.1b25.9x115.5x3.1x
Sun, 11 Jun 2023US$668.6bUS$228.2bUS$5.9b23.1x113x2.9x
Tue, 09 May 2023US$609.9bUS$232.6bUS$5.8b23.7x104.3x2.6x
Thu, 06 Apr 2023US$589.4bUS$225.6bUS$2.4b22x246.6x2.6x
Sat, 04 Mar 2023US$2.0tUS$463.8bUS$22.5b26.6x88.3x4.3x
Price to Earnings Ratio

88.3x


Total Market Cap: US$2.0tTotal Earnings: US$22.5bTotal Revenue: US$463.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.3x202420252026
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 37.5x which is lower than its 3-year average PE of 68.3x.
  • 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 Market0.50%
Tech0.54%
IT-6.93%
Data Processing Services-0.033%
Internet Services and Infrastructure-3.30%
IT Consulting-10.34%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.8x.
    • Analysts are expecting annual earnings growth of 14.0%, which is lower than the prior year's growth of 19.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 32% over the next 5 years.
  • This is better than its past earnings growth rate of 13% 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
SHOP ShopifyUS$116.933.0%
+US$4.4b		5.4%PE123.9x
CRWV CoreWeaveUS$99.309.1%
+US$4.3b		n/aPS12x
TWLO TwilioUS$113.854.9%
+US$812.6m		-1.2%PE510.2x
SHAZ SharonAI HoldingsUS$30.191,488.9%
+US$464.4m		-55.2%PS330.2x
RXT Rackspace TechnologyUS$1.46248.4%
+US$253.6m		-43.4%PS0.1x

Latest News

ACN
US$196.73
Accenture
7D
-10.5%
1Y
-45.8%
RXT
US$1.46
Rackspace Technology
7D
248.4%
1Y
-43.4%
IBM
US$229.32
International Business Machines
7D
-11.2%
1Y
-11.0%
SNOW
US$161.06
Snowflake
7D
-9.1%
1Y
-1.9%
NET
US$163.81
Cloudflare
7D
-15.4%
1Y
14.4%
OKTA
US$71.14
Okta
7D
-13.7%
1Y
-20.4%

OKTA: Cybersecurity Demand And 90 Day Catalyst Watch Will Drive Repricing

Analysts have slightly reduced their Okta fair value estimate by about $1 to $112.55, as lower sector valuation multiples and AI related sentiment have led to lower price targets, even though checks on Okta's business and profitability assumptions remain generally intact. Analyst Commentary Recent research on Okta reflects a mix of optimism about the company’s execution and caution around sector wide repricing and AI related sentiment.
EPAM
US$128.82
EPAM Systems
7D
-20.6%
1Y
-38.8%

EPAM: GenAI Execution And Client Recovery Will Drive Transition Rerating

Analysts have lowered their price targets on EPAM Systems, and our updated fair value estimate has moved from about $220.67 to $207.53. This change reflects more tempered assumptions for revenue growth, margins, and future P/E as the company moves through a transition period while building out its AI business.
SHAZ
US$30.19
SharonAI Holdings
7D
1,488.9%
1Y
-55.2%
MDB
US$312.51
MongoDB
7D
-11.8%
1Y
20.3%

MDB: Fair Outlook Balances AI Workload Opportunity With Execution And Expectation Risks

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$113.85
Twilio
7D
4.9%
1Y
-1.2%

TWLO: Future Performance Will Reflect Strengthening Organic Growth And Execution Confidence

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.
GDDY
US$92.30
GoDaddy
7D
1.2%
1Y
-47.7%

GDDY: AI Synergy Phase Will Support Steady Margins And Long Term Returns

Analysts have trimmed their average price target for GoDaddy by $14 to around $130, citing updated discount rate and valuation assumptions, while also highlighting potential for steadier revenue growth and profit margins ahead. Analyst Commentary Recent research updates give you a mixed but useful read on how professionals are thinking about GoDaddy at the new, lower price targets around US$130.
SHOP
US$116.93
Shopify
7D
3.0%
1Y
5.4%

SHOP: Rich Multiple And Mixed Sentiment Will Likely Cap Near-Term Upside

Analysts have trimmed our Shopify fair value estimate to $110 from about $139. This reflects lower price targets across the Street as models reset for softer revenue growth assumptions, slightly reduced margin expectations, and lower sector P/E multiples despite generally solid recent results.
GDS
US$46.03
GDS Holdings
7D
1.9%
1Y
14.8%

GDS: 300MW 2025 Leasing And 2026 Installs Will Support Upside

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.
CTSH
US$61.06
Cognizant Technology Solutions
7D
-6.3%
1Y
-28.0%

CTSH: AI Partnerships And Healthier Bookings Will Support Future Upside

Analysts have made a modest downward adjustment to their fair value estimate for Cognizant Technology Solutions, trimming the price target by about $0.52 to $90.88 as they weigh stronger projected revenue growth and slightly lower discount rates against softer margin and future P/E assumptions. Analyst Commentary Recent Street research on Cognizant Technology Solutions shows a mix of optimism and caution, with several firms adjusting price targets and ratings over the past few months.
BNAI
US$28.20
Brand Engagement Network
7D
49.8%
1Y
613.9%
CRWV
US$99.30
CoreWeave
7D
9.1%
1Y
n/a