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U.S. IT Industry Analysis

UpdatedJan 16, 2026
DataAggregated Company Financials
Companies126
  • 7D-1.5%
  • 3M3.3%
  • 1Y15.6%
  • YTD3.0%

Over the last 7 days, the IT industry has dropped 1.5%, driven by Shopify declining 6.1%. Meanwhile, CoreWeave actually outperformed within the industry, gaining 23% in the last week. This takes the industry's 12 month performance to a gain of 16%. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 17 Jan 2026US$1.1tUS$252.7bUS$19.8b29.8x53.8x4.2x
Mon, 15 Dec 2025US$1.1tUS$282.0bUS$21.0b29.9x52.1x3.9x
Wed, 12 Nov 2025US$1.1tUS$281.0bUS$20.5b30.5x54.1x3.9x
Fri, 10 Oct 2025US$1.1tUS$282.2bUS$20.0b32.4x55.8x4x
Sun, 07 Sep 2025US$974.0bUS$250.9bUS$19.3b29.3x50.4x3.9x
Tue, 05 Aug 2025US$921.3bUS$243.5bUS$17.8b26.8x51.7x3.8x
Thu, 03 Jul 2025US$1.0tUS$241.7bUS$17.4b28.9x58.2x4.2x
Sat, 31 May 2025US$945.0bUS$240.3bUS$17.0b29x55.5x3.9x
Mon, 28 Apr 2025US$841.9bUS$242.4bUS$18.0b31.6x46.9x3.5x
Wed, 26 Mar 2025US$887.0bUS$240.8bUS$19.2b47.3x46.1x3.7x
Fri, 21 Feb 2025US$1.0tUS$239.6bUS$18.2b45.7x56.9x4.3x
Sun, 19 Jan 2025US$872.5bUS$234.1bUS$16.3b42.1x53.4x3.7x
Tue, 17 Dec 2024US$894.9bUS$233.2bUS$16.4b44.7x54.6x3.8x
Thu, 14 Nov 2024US$848.9bUS$232.6bUS$16.3b46.1x51.9x3.6x
Sat, 12 Oct 2024US$820.4bUS$232.9bUS$17.8b43.4x46.2x3.5x
Mon, 09 Sep 2024US$739.3bUS$233.3bUS$17.5b35.4x42.1x3.2x
Wed, 07 Aug 2024US$679.2bUS$232.5bUS$16.1b28.6x42.1x2.9x
Fri, 05 Jul 2024US$720.0bUS$237.0bUS$17.2b28.3x41.9x3x
Sun, 02 Jun 2024US$671.5bUS$237.1bUS$17.3b28.3x38.8x2.8x
Tue, 30 Apr 2024US$712.8bUS$228.0bUS$14.4b25x49.6x3.1x
Thu, 28 Mar 2024US$781.0bUS$227.7bUS$14.2b22.3x55.2x3.4x
Sat, 24 Feb 2024US$827.0bUS$227.5bUS$14.2b22x58.2x3.6x
Mon, 22 Jan 2024US$808.6bUS$229.4bUS$12.9b22x62.5x3.5x
Wed, 20 Dec 2023US$787.8bUS$229.5bUS$12.8b20.3x61.5x3.4x
Fri, 17 Nov 2023US$716.5bUS$228.4bUS$12.7b21.1x56.4x3.1x
Sun, 15 Oct 2023US$651.0bUS$227.2bUS$6.5b20.7x100.6x2.9x
Tue, 12 Sep 2023US$711.0bUS$226.6bUS$6.8b23.5x104.5x3.1x
Thu, 10 Aug 2023US$665.3bUS$226.0bUS$6.7b22.8x99.3x2.9x
Sat, 08 Jul 2023US$667.8bUS$228.6bUS$6.1b24.2x109.6x2.9x
Mon, 05 Jun 2023US$673.6bUS$228.3bUS$5.9b24x113.8x3x
Wed, 03 May 2023US$570.0bUS$225.4bUS$3.2b21.8x178.7x2.5x
Fri, 31 Mar 2023US$592.0bUS$225.6bUS$2.3b21.9x252.5x2.6x
Sun, 26 Feb 2023US$1.9tUS$462.6bUS$22.4b26.6x86.8x4.2x
Tue, 24 Jan 2023US$2.0tUS$458.2bUS$39.1b28.7x52x4.4x
Price to Earnings Ratio

52x


Total Market Cap: US$2.0tTotal Earnings: US$39.1bTotal Revenue: US$458.2bTotal 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 53.8x which is lower than its 3-year average PE of 68.9x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.2x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 20% per year over the last three years,
  • Revenues have also declined 18% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market0.31%
Tech-0.0033%
IT-1.53%
IT Consulting-0.50%
Data Processing Services-1.88%
Internet Services and Infrastructure-2.69%
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 15.8%, which is lower than the prior year's growth of 22.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 30% 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 9.8% 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
CRWV CoreWeaveUS$95.0123.2%
+US$8.9b		n/aPS11x
ACN AccentureUS$287.772.1%
+US$3.7b		-17.9%PE23.3x
APLD Applied DigitalUS$35.2210.3%
+US$917.0m		292.2%PS37.3x
AKAM Akamai TechnologiesUS$91.536.8%
+US$837.3m		1.1%PE26x
KC Kingsoft Cloud HoldingsUS$12.3612.6%
+US$414.7m		24.7%PS2.9x

Latest News

CRWV
US$95.01
CoreWeave
7D
23.2%
1Y
n/a

CoreWeave, Inc. (NASDAQ:CRWV) Stocks Shoot Up 37% But Its P/S Still Looks Reasonable

Jan 16
CoreWeave, Inc. (NASDAQ:CRWV) Stocks Shoot Up 37% But Its P/S Still Looks Reasonable
AKAM
US$91.53
Akamai Technologies
7D
6.8%
1Y
1.1%
NET
US$184.14
Cloudflare
7D
-1.5%
1Y
60.4%
VNET
US$11.49
VNET Group
7D
11.3%
1Y
103.7%
APLD
US$35.22
Applied Digital
7D
10.3%
1Y
292.2%

Rainbows and Unicorns: Applied Digital Corporation (NASDAQ:APLD) Analysts Just Became A Lot More Optimistic

Jan 15
Rainbows and Unicorns: Applied Digital Corporation (NASDAQ:APLD) Analysts Just Became A Lot More Optimistic
MDB
US$389.20
MongoDB
7D
-5.9%
1Y
57.0%
VRSN
US$249.22
VeriSign
7D
0.8%
1Y
18.3%

VRSN: Stronger Dot Com Trends And Share Repurchases Will Support Future Confidence

Analysts have raised their fair value estimate for VeriSign slightly, from US$295.50 to US$295.75. This adjustment reflects slightly stronger.
ACN
US$287.77
Accenture
7D
2.1%
1Y
-17.9%
KC
US$12.36
Kingsoft Cloud Holdings
7D
12.6%
1Y
24.7%

KC: Upcoming Q3 Results Will Support Shares Despite Higher Discount Rate

Analysts have slightly increased their fair value estimate for Kingsoft Cloud Holdings from about US$14.18 to roughly US$14.21 per share, citing updated assumptions around revenue growth, discount rates, and future P/E expectations. What's in the News Board meeting scheduled for November 19, 2025, to review and approve unaudited third quarter results for the three months ended September 30, 2025, covering Kingsoft Cloud Holdings, its subsidiaries, and consolidated affiliated entities (Key Developments).
TWLO
US$119.78
Twilio
7D
-12.8%
1Y
4.5%
SNOW
US$207.74
Snowflake
7D
-7.2%
1Y
23.9%

SNOW: AI Demand And Expanded Partnerships Will Support Long-Term Earnings Power

Narrative Update on Snowflake Analysts have nudged our Snowflake fair value estimate slightly higher from US$281.73 to US$283.52, citing recent price target increases toward US$300 to US$325 that reference robust AI driven demand, expanding margins, and what they view as a constructive setup into 2025. Analyst Commentary Recent Street research around Snowflake has been broadly constructive, with several bullish analysts lifting price targets into the US$295 to US$325 range and one upgrade framing current levels as a potential entry point after a weaker Q3 reaction.
IT
US$230.38
Gartner
7D
-6.7%
1Y
-55.0%

IT: Ongoing Buybacks Will Support Future Upside Despite Recent Impairment Charges

Analysts have made modest updates to their price target for Gartner, keeping fair value effectively steady at about $283.73. They are fine-tuning assumptions such as discount rate, revenue growth, profit margin and future P/E to reflect slightly adjusted expectations rather than a major shift in outlook.
IBM
US$297.95
International Business Machines
7D
-1.6%
1Y
33.8%

IBM: Quantum Potential And Software Execution Will Shape Returns Through Workforce Shift

Analysts made only a modest adjustment to their price targets on International Business Machines, balancing mixed views on near term software momentum with the longer term potential in areas such as quantum computing and higher margin revenue streams. Analyst Commentary Recent research paints a mixed picture for International Business Machines, with some analysts more focused on long term optionality in quantum and others keying in on near term software execution and valuation.
SHOP
US$157.99
Shopify
7D
-6.1%
1Y
52.6%

SHOP: Lofty Multiples And Soft Cash Flow Will Restrain Near-Term Upside

Analysts increased their Shopify fair value estimate from about US$116 to roughly US$139, citing stronger expected revenue growth, a slightly higher assumed future P/E, and recent price target hikes across the Street. They attribute these changes to what they view as solid Q3 execution, despite some concerns around valuation and free cash flow.
GDDY
US$107.35
GoDaddy
7D
-7.1%
1Y
-46.6%

GDDY: AI And Identity Initiatives Will Support Higher Margin Efficiency

Analysts have nudged their fair value estimate for GoDaddy up from $134.00 to $145.00, reflecting updated assumptions for slightly higher revenue growth and profit margins. They still acknowledge recent Street price target reductions tied to mixed near term guidance and a desire for clearer visibility on the growth and margin outlook.
GDS
US$43.40
GDS Holdings
7D
4.0%
1Y
91.0%

GDS: 2025 Leasing And 2026 Installs Will Drive Shares Higher

Our updated view trims the analyst price target for GDS Holdings by about US$1, reflecting analysts' mixed reactions to recent 3Q25 results, maintained 2025 guidance, and expectations for 300MW of 2025 leasing with higher 2026 installs that support a more moderate profit and P/E outlook. Analyst Commentary Bullish Takeaways Bullish analysts point to the maintained 2025 guidance and planned 300MW of 2025 leasing as key supports for the current valuation framework, suggesting the existing plan is intact despite mixed 3Q25 results.