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U.S. IT Industry Analysis

UpdatedFeb 14, 2026
DataAggregated Company Financials
Companies124
  • 7D-3.5%
  • 3M-11.3%
  • 1Y-16.8%
  • YTD-12.0%

Over the last 7 days, the IT industry has dropped 3.5%, driven by International Business Machines declining 12%. In contrast, Cloudflare has gained 13%. The industry has fallen 17% in the last year. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 14 Feb 2026US$883.0bUS$256.5bUS$21.7b23.2x40.6x3.4x
Mon, 12 Jan 2026US$1.1tUS$282.8bUS$21.0b30.9x52.2x3.9x
Wed, 10 Dec 2025US$1.1tUS$282.0bUS$21.0b30.9x52.2x3.9x
Fri, 07 Nov 2025US$1.1tUS$280.3bUS$20.1b31.2x55.3x4x
Sun, 05 Oct 2025US$1.1tUS$283.3bUS$20.1b33.2x54.5x3.9x
Tue, 02 Sep 2025US$988.2bUS$250.9bUS$19.3b32.7x51.2x3.9x
Thu, 31 Jul 2025US$971.9bUS$242.9bUS$17.7b26.7x54.9x4x
Sat, 28 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.3x4.2x
Mon, 26 May 2025US$930.5bUS$240.2bUS$16.9b29x54.9x3.9x
Wed, 23 Apr 2025US$786.6bUS$242.3bUS$18.5b32.6x42.5x3.2x
Fri, 21 Mar 2025US$888.3bUS$240.9bUS$19.2b43.9x46.2x3.7x
Sun, 16 Feb 2025US$1.0tUS$239.4bUS$18.2b44.8x57x4.3x
Tue, 14 Jan 2025US$855.5bUS$234.0bUS$16.5b37.4x52x3.7x
Thu, 12 Dec 2024US$899.4bUS$233.3bUS$16.4b45x54.9x3.9x
Sat, 09 Nov 2024US$820.1bUS$233.2bUS$16.1b46.9x50.9x3.5x
Mon, 07 Oct 2024US$806.1bUS$232.9bUS$17.8b43.3x45.4x3.5x
Wed, 04 Sep 2024US$761.2bUS$233.2bUS$17.5b38.4x43.4x3.3x
Fri, 02 Aug 2024US$751.2bUS$236.7bUS$17.7b29.2x42.5x3.2x
Sun, 30 Jun 2024US$710.2bUS$237.1bUS$17.2b27.9x41.3x3x
Tue, 28 May 2024US$707.2bUS$237.0bUS$17.2b28.2x41x3x
Thu, 25 Apr 2024US$734.3bUS$227.8bUS$13.7b24.2x53.4x3.2x
Sat, 23 Mar 2024US$776.8bUS$227.6bUS$14.6b22.3x53.3x3.4x
Mon, 19 Feb 2024US$831.3bUS$227.5bUS$14.2b23.4x58.5x3.7x
Wed, 17 Jan 2024US$799.2bUS$229.4bUS$12.9b21x61.8x3.5x
Fri, 15 Dec 2023US$778.2bUS$229.0bUS$12.8b20.3x60.8x3.4x
Sun, 12 Nov 2023US$685.6bUS$228.4bUS$12.6b20.9x54.2x3x
Tue, 10 Oct 2023US$670.6bUS$227.2bUS$6.5b22.4x103.7x3x
Thu, 07 Sep 2023US$706.9bUS$226.6bUS$6.8b23.1x103.9x3.1x
Sat, 05 Aug 2023US$680.8bUS$226.3bUS$6.4b24x106.1x3x
Mon, 03 Jul 2023US$679.5bUS$228.6bUS$6.1b23.6x111.5x3x
Wed, 31 May 2023US$655.3bUS$228.0bUS$5.8b23.7x113.9x2.9x
Fri, 28 Apr 2023US$581.3bUS$225.6bUS$2.7b21.2x212.9x2.6x
Sun, 26 Mar 2023US$572.2bUS$225.5bUS$2.3b22.6x245x2.5x
Tue, 21 Feb 2023US$2.0tUS$462.1bUS$22.5b28.4x89.1x4.3x
Price to Earnings Ratio

89.1x


Total Market Cap: US$2.0tTotal Earnings: US$22.5bTotal Revenue: US$462.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.8x202420252026
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 40.6x which is lower than its 3-year average PE of 68.8x.
  • 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-1.39%
Tech-1.62%
IT-3.48%
Internet Services and Infrastructure5.57%
Data Processing Services-5.93%
IT Consulting-10.65%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.1x.
    • Analysts are expecting annual earnings growth of 13.9%, 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 33% 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 8.6% 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$195.8513.1%
+US$8.2b		14.4%PS31.8x
SNOW SnowflakeUS$182.298.2%
+US$4.7b		-2.8%PS14.2x
CRWV CoreWeaveUS$96.046.8%
+US$3.2b		n/aPS11.6x
AKAM Akamai TechnologiesUS$111.7617.5%
+US$2.4b		11.7%PE31.7x
MDB MongoDBUS$368.407.0%
+US$2.0b		27.2%PS12.9x

Latest News

FSLY
US$18.26
Fastly
7D
113.1%
1Y
126.3%
AKAM
US$111.76
Akamai Technologies
7D
17.5%
1Y
11.7%
VNET
US$13.80
VNET Group
7D
23.2%
1Y
19.6%
KD
US$12.24
Kyndryl Holdings
7D
-47.9%
1Y
-70.7%
SHOP
US$112.70
Shopify
7D
0.6%
1Y
-12.2%

The Price Is Right For Shopify Inc. (NASDAQ:SHOP) Even After Diving 34%

Feb 13
The Price Is Right For Shopify Inc. (NASDAQ:SHOP) Even After Diving 34%
NET
US$195.85
Cloudflare
7D
13.1%
1Y
14.4%

Earnings Update: Cloudflare, Inc. (NYSE:NET) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts

Feb 13
Earnings Update: Cloudflare, Inc. (NYSE:NET) Just Reported Its Yearly Results And Analysts Are Updating Their Forecasts
VRSN
US$219.03
VeriSign
7D
-2.3%
1Y
-4.5%
ASGN
US$41.43
ASGN
7D
-21.1%
1Y
-45.1%
ACN
US$224.23
Accenture
7D
-6.8%
1Y
-42.2%
IBM
US$262.38
International Business Machines
7D
-12.2%
1Y
0.4%
EPAM
US$166.37
EPAM Systems
7D
-10.9%
1Y
-37.5%

EPAM: GenAI Execution And M&A Integration Will Support A Higher Future Multiple

Narrative Update on EPAM Systems The analyst price target for EPAM Systems has shifted from $255 to $275, with analysts pointing to revised assumptions around slightly lower discount rates, higher modeled revenue growth, modestly adjusted profit margins, and a higher future P/E multiple, supported by recent sector upgrades and a series of price target increases across the Street. Analyst Commentary Recent Street research on EPAM Systems has tilted more positive, with several bullish analysts raising price targets and pointing to potential for better execution and improved sentiment around IT services over the medium term.
CTSH
US$66.55
Cognizant Technology Solutions
7D
-13.7%
1Y
-26.6%
SNOW
US$182.29
Snowflake
7D
8.2%
1Y
-2.8%

SNOW: OpenAI Partnership And AI Demand Will Drive Future Platform Adoption

Narrative Update: Snowflake Analysts have lifted their fair value estimate for Snowflake to US$366.83 from US$334.94. This reflects updated assumptions for slightly lower revenue growth, a modestly reduced discount rate, a higher future P/E multiple, and increased AI consumption potential tied to Snowflake's new US$200m partnership with OpenAI and broader AI focused research commentary.
CRWV
US$96.04
CoreWeave
7D
6.8%
1Y
n/a
GDDY
US$89.12
GoDaddy
7D
-8.3%
1Y
-51.1%
MDB
US$368.40
MongoDB
7D
7.0%
1Y
27.2%

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.