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U.S. IT Industry Analysis

UpdatedMar 13, 2026
DataAggregated Company Financials
Companies123
  • 7D-2.6%
  • 3M-18.7%
  • 1Y-1.4%
  • YTD-15.5%

Over the last 7 days, the IT industry has dropped 2.6%, driven by declines in Shopify and Accenture of 6.4% and 8.4%, respectively. Meanwhile, Cloudflare actually outperformed within the industry, gaining 10% in the last week. As for the longer term, the industry's performance has been flat for the past year. 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, 13 Mar 2026US$881.2bUS$258.1bUS$21.5b19.2x41x3.4x
Sun, 08 Feb 2026US$931.9bUS$255.1bUS$22.6b26.5x41.2x3.7x
Tue, 06 Jan 2026US$1.1tUS$283.0bUS$20.9b30.1x51.5x3.8x
Thu, 04 Dec 2025US$1.1tUS$281.8bUS$21.0b29.7x51.5x3.8x
Sat, 01 Nov 2025US$1.1tUS$284.0bUS$21.8b29.4x52.8x4x
Mon, 29 Sep 2025US$1.0tUS$251.9bUS$19.1b31.3x53.1x4x
Wed, 27 Aug 2025US$942.6bUS$250.5bUS$19.3b30.7x49x3.8x
Fri, 25 Jul 2025US$996.2bUS$242.9bUS$17.7b28.1x56.3x4.1x
Sun, 22 Jun 2025US$995.9bUS$240.5bUS$17.1b27x58.3x4.1x
Tue, 20 May 2025US$943.4bUS$239.9bUS$16.9b29.7x55.8x3.9x
Thu, 17 Apr 2025US$816.7bUS$242.4bUS$18.5b33.2x44.1x3.4x
Sat, 15 Mar 2025US$853.1bUS$240.0bUS$18.7b45.8x45.7x3.6x
Mon, 10 Feb 2025US$981.1bUS$234.2bUS$16.3b48.1x60.3x4.2x
Wed, 08 Jan 2025US$878.6bUS$234.1bUS$16.5b47.9x53.4x3.8x
Fri, 06 Dec 2024US$908.5bUS$233.2bUS$16.4b47.6x55.5x3.9x
Sun, 03 Nov 2024US$776.2bUS$233.1bUS$15.9b45.6x48.7x3.3x
Tue, 01 Oct 2024US$796.8bUS$233.8bUS$17.8b40x44.7x3.4x
Thu, 29 Aug 2024US$755.3bUS$233.1bUS$17.5b34.2x43.2x3.2x
Sat, 27 Jul 2024US$742.0bUS$237.1bUS$17.4b29.3x42.7x3.1x
Mon, 24 Jun 2024US$703.6bUS$237.1bUS$17.2b27.8x41x3x
Wed, 22 May 2024US$721.0bUS$236.8bUS$17.3b25.7x41.6x3x
Fri, 19 Apr 2024US$721.5bUS$227.7bUS$13.7b24.2x52.5x3.2x
Sun, 17 Mar 2024US$798.4bUS$227.7bUS$14.4b22.3x55.5x3.5x
Tue, 13 Feb 2024US$848.8bUS$226.8bUS$13.1b21.4x64.7x3.7x
Thu, 11 Jan 2024US$779.9bUS$229.4bUS$12.9b20.1x60.3x3.4x
Sat, 09 Dec 2023US$753.3bUS$229.0bUS$12.8b21.3x58.8x3.3x
Mon, 06 Nov 2023US$679.6bUS$228.3bUS$12.1b19.8x56x3x
Wed, 04 Oct 2023US$661.8bUS$227.2bUS$6.5b23x102.3x2.9x
Fri, 01 Sep 2023US$703.8bUS$226.5bUS$6.7b21.6x104.7x3.1x
Sun, 30 Jul 2023US$691.2bUS$228.6bUS$6.2b23.3x111.4x3x
Tue, 27 Jun 2023US$659.1bUS$228.6bUS$6.1b23.5x107.3x2.9x
Thu, 25 May 2023US$636.2bUS$229.1bUS$5.1b23.8x124.3x2.8x
Sat, 22 Apr 2023US$585.8bUS$225.6bUS$2.7b22.4x214.9x2.6x
Mon, 20 Mar 2023US$553.2bUS$224.7bUS$2.5b22.1x225.6x2.5x
Price to Earnings Ratio

225.6x


Total Market Cap: US$553.2bTotal Earnings: US$2.5bTotal Revenue: US$224.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 67.6x202420252026
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 41.0x which is lower than its 3-year average PE of 67.6x.
  • 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 106% per year over the last three years.
  • Revenues for these companies have grown 4.7% 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-2.29%
Tech-0.72%
IT-2.65%
Internet Services and Infrastructure0.12%
IT Consulting-5.37%
Data Processing Services-6.78%
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 13.4%, 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.
  • 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 8.4% 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
NET CloudflareUS$212.1110.3%
+US$7.0b		86.6%PS34.4x
CRWV CoreWeaveUS$79.866.7%
+US$2.6b		n/aPS8.2x
DOCN DigitalOcean HoldingsUS$66.2223.0%
+US$1.1b		87.5%PE23.5x
GDS GDS HoldingsUS$42.8212.4%
+US$943.8m		27.7%PE50.6x
AKAM Akamai TechnologiesUS$105.474.4%
+US$647.6m		34.1%PE33.8x

Latest News

IBM
US$247.68
International Business Machines
7D
-3.5%
1Y
0.8%
DOCN
US$66.22
DigitalOcean Holdings
7D
23.0%
1Y
87.5%
ACN
US$196.05
Accenture
7D
-8.4%
1Y
-38.2%

ACN: GenAI Partnerships And Internal Adoption Will Shape Future Enterprise Modernization

Accenture's updated analyst price target edges down to about $283 from roughly $292, as analysts factor in sector wide multiple compression and a more cautious stance on enterprise AI demand and partner spending. Analyst Commentary Recent research on Accenture highlights a mix of optimism and caution, with most firms trimming their price targets while reassessing expectations for AI driven growth, partner spending and overall valuation multiples.
SHOP
US$126.17
Shopify
7D
-6.4%
1Y
39.3%
KC
US$13.54
Kingsoft Cloud Holdings
7D
15.2%
1Y
-19.1%
CRWV
US$79.86
CoreWeave
7D
6.7%
1Y
n/a
IT
US$160.59
Gartner
7D
-6.1%
1Y
-64.5%
FSLY
US$24.22
Fastly
7D
18.5%
1Y
267.0%
EPAM
US$135.81
EPAM Systems
7D
-6.1%
1Y
-24.6%

EPAM: AI And Pricing Execution Will Support Transition Rerating Despite 2026 Headwind

The updated analyst price target for EPAM Systems reflects a modest recalibration lower, with our fair value estimate moving from about $207.53 to $191.18 as analysts factor in softer 2026 guidance tied to specific client headwinds. This is partially offset by ongoing confidence in AI related demand, pricing, and margin potential.
VNET
US$10.57
VNET Group
7D
7.9%
1Y
1.6%

VNET: Private REIT Project Will Support Future Data Center Expansion

Analysts have trimmed their price target for VNET Group to about $14.92 from roughly $15.31, reflecting updated assumptions around discount rates, profit margins, and future P/E levels. Valuation Changes Fair Value: Trimmed slightly from $15.31 to $14.92 per share, reflecting updated model inputs.
AKAM
US$105.47
Akamai Technologies
7D
4.4%
1Y
34.1%
WIX
US$86.91
Wix.com
7D
-6.5%
1Y
-49.7%
NET
US$212.11
Cloudflare
7D
10.3%
1Y
86.6%

NET: AI Infrastructure And JD Cloud Partnership Will Drive Future Upside

Analysts have trimmed their average Cloudflare price target slightly by about $1 to reflect a higher discount rate and sharply lower modeled profit margins, while still highlighting continued revenue strength and questioning recent security sector selling linked to Claude Code Security news. Analyst Commentary Recent research on Cloudflare reflects a split tape, with several banks trimming price targets on valuation and margin assumptions at the same time others are upgrading ratings or lifting targets on product momentum and AI exposure.
GDS
US$42.82
GDS Holdings
7D
12.4%
1Y
27.7%
GDDY
US$80.75
GoDaddy
7D
-13.3%
1Y
-53.2%

GDDY: AI Agentic Offerings Will Support Margins And Long Term Returns

Narrative Update on GoDaddy Analysts have reset expectations for GoDaddy, with our illustrative fair value moving from about $175.00 to roughly $119.43 as lower Street price targets, tempered revenue growth assumptions, and a reduced future P/E outlook reflect concerns over softer 2026 guidance, bookings trends, and ongoing debate around AI related competitive risks, even as newer AI driven offerings and margin guidance keep longer term potential in focus. Analyst Commentary Street research has shifted sharply lower on GoDaddy's valuation assumptions, with a series of reduced price targets clustering in the US$77 to US$210 range.
CTSH
US$61.18
Cognizant Technology Solutions
7D
-7.0%
1Y
-21.9%

CTSH: AI Partnerships And New Long Term Deals Will Support Upside

The analyst price target for Cognizant Technology Solutions has been trimmed by less than $1, as analysts balance slightly lower fair value and growth assumptions with recent mixed target changes across the Street and growing interest in the company’s AI traction. Analyst Commentary Recent research on Cognizant Technology Solutions has been active, with several firms adjusting price targets in both directions and a series of fresh initiations and upgrades.