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U.S. IT Industry Analysis

UpdatedMar 12, 2026
DataAggregated Company Financials
Companies123
  • 7D1.4%
  • 3M-18.2%
  • 1Y-2.7%
  • YTD-14.1%

In the last week, the IT industry is up 1.4%, with Cloudflare up 15%. Overall in the last year, the industry is flat. Looking forward, 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
Thu, 12 Mar 2026US$874.5bUS$258.1bUS$21.5b20.2x40.7x3.4x
Sat, 07 Feb 2026US$891.6bUS$255.1bUS$22.6b26.5x39.4x3.5x
Mon, 05 Jan 2026US$1.1tUS$282.9bUS$20.9b28.8x50.4x3.7x
Wed, 03 Dec 2025US$1.1tUS$281.6bUS$20.9b28.6x51.4x3.8x
Fri, 31 Oct 2025US$1.2tUS$283.7bUS$21.7b29.3x53.4x4.1x
Sun, 28 Sep 2025US$1.0tUS$251.9bUS$19.1b31.3x53.1x4x
Tue, 26 Aug 2025US$950.3bUS$250.5bUS$19.3b31x49.4x3.8x
Thu, 24 Jul 2025US$998.7bUS$241.7bUS$17.3b28.2x57.6x4.1x
Sat, 21 Jun 2025US$995.9bUS$240.5bUS$17.1b27x58.3x4.1x
Mon, 19 May 2025US$943.4bUS$239.9bUS$16.9b29.7x55.8x3.9x
Wed, 16 Apr 2025US$814.3bUS$242.3bUS$18.5b33.9x44x3.4x
Fri, 14 Mar 2025US$877.6bUS$240.0bUS$18.7b43.8x47x3.7x
Sun, 09 Feb 2025US$981.1bUS$234.2bUS$16.3b48.1x60.3x4.2x
Tue, 07 Jan 2025US$871.5bUS$234.1bUS$16.5b48.4x53x3.7x
Thu, 05 Dec 2024US$888.6bUS$233.2bUS$16.4b45.3x54.3x3.8x
Sat, 02 Nov 2024US$772.8bUS$233.1bUS$15.9b45.6x48.5x3.3x
Mon, 30 Sep 2024US$796.7bUS$233.8bUS$17.8b40.3x44.7x3.4x
Wed, 28 Aug 2024US$753.9bUS$233.1bUS$17.4b34.3x43.2x3.2x
Fri, 26 Jul 2024US$729.1bUS$237.1bUS$17.4b29.2x41.9x3.1x
Sun, 23 Jun 2024US$703.6bUS$237.1bUS$17.2b27.8x41x3x
Tue, 21 May 2024US$716.6bUS$236.8bUS$17.3b25.8x41.5x3x
Thu, 18 Apr 2024US$723.5bUS$227.7bUS$13.7b24.3x52.6x3.2x
Sat, 16 Mar 2024US$808.5bUS$227.7bUS$14.4b22.3x56.2x3.6x
Mon, 12 Feb 2024US$856.9bUS$226.8bUS$13.1b22.7x65.4x3.8x
Wed, 10 Jan 2024US$779.9bUS$229.4bUS$12.9b20x60.3x3.4x
Fri, 08 Dec 2023US$751.4bUS$229.0bUS$12.8b21.1x58.7x3.3x
Sun, 05 Nov 2023US$679.6bUS$228.3bUS$12.1b19.8x56x3x
Tue, 03 Oct 2023US$662.3bUS$227.2bUS$6.5b23.4x102.4x2.9x
Thu, 31 Aug 2023US$691.5bUS$226.3bUS$6.6b21.7x104.4x3.1x
Sat, 29 Jul 2023US$691.2bUS$228.6bUS$6.2b23.3x111.4x3x
Mon, 26 Jun 2023US$661.8bUS$228.6bUS$6.1b23.4x107.8x2.9x
Wed, 24 May 2023US$638.3bUS$229.1bUS$5.1b24x124.7x2.8x
Fri, 21 Apr 2023US$584.1bUS$225.7bUS$2.7b22.8x214.5x2.6x
Sun, 19 Mar 2023US$906.7bUS$347.5b-US$7,069,796,349.0024x-128.3x2.6x
Price to Earnings Ratio

-128.3x


Total Market Cap: US$906.7bTotal Earnings: -US$7,069,796,349.00Total Revenue: US$347.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 67.7x202420252026
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 40.7x which is lower than its 3-year average PE of 67.7x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • Total earnings for the IT industry have gone up over the last three years and the industry is now profitable.
  • Revenues have declined 9.4% per year.
  • This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.

Industry Trends

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

US Market-1.47%
Tech0.73%
IT1.43%
Internet Services and Infrastructure4.98%
IT Consulting-1.95%
Data Processing Services-3.37%
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 13.3%, 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$213.0014.6%
+US$9.5b		78.4%PS34.6x
SNOW SnowflakeUS$179.436.6%
+US$3.8b		17.8%PS13.1x
MDB MongoDBUS$270.579.1%
+US$1.8b		38.0%PS8.8x
OKTA OktaUS$80.8512.7%
+US$1.6b		-25.7%PE60.9x
DOCN DigitalOcean HoldingsUS$68.6931.4%
+US$1.5b		90.3%PE24.4x

Latest News

OKTA
US$80.85
Okta
7D
12.7%
1Y
-25.7%
DOCN
US$68.69
DigitalOcean Holdings
7D
31.4%
1Y
90.3%
VRSN
US$235.73
VeriSign
7D
-1.3%
1Y
0.06%

VRSN: Steady .Com Base And Buybacks Will Support Future Cash Returns

Analysts have trimmed their average price target on VeriSign by $57, citing updated models that reflect a slightly higher discount rate and P/E assumption, even as they acknowledge steady. com domain trends and fairly valued shares.
CRWV
US$81.96
CoreWeave
7D
3.1%
1Y
n/a
IT
US$160.39
Gartner
7D
-3.9%
1Y
-65.1%
DOX
US$66.92
Amdocs
7D
-2.6%
1Y
-23.5%

DOX: Reset Guidance And Capital Returns Will Support Future Repricing

Analysts have reduced their Amdocs price targets by roughly $10 to $20, citing updated assumptions around discount rates and future P/E, while maintaining a broadly unchanged view of the stock’s fair value. Analyst Commentary Recent research updates keep the core investment view on Amdocs largely intact, even as price targets are reset to reflect revised discount rates and updated P/E assumptions.
IBM
US$248.87
International Business Machines
7D
-0.5%
1Y
-0.3%
SNOW
US$179.43
Snowflake
7D
6.6%
1Y
17.8%

SNOW: OpenAI Alliance And AI Workloads Will Drive Future Platform Adoption

We are trimming our Snowflake fair value estimate by about $25.80 to $341.03, reflecting a higher discount rate and lower future P/E assumption, even as analysts point to solid Q4 execution, accelerating AI use cases, and generally supportive long term growth and margin profiles in their updated price targets. Analyst Commentary Street research around Snowflake has been active, with most firms adjusting price targets while still expressing confidence in the company’s execution, AI positioning, and long term opportunity.
WIX
US$89.91
Wix.com
7D
7.3%
1Y
-48.6%
NET
US$213.00
Cloudflare
7D
14.6%
1Y
78.4%

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.
MDB
US$270.57
MongoDB
7D
9.1%
1Y
38.0%

MDB: Fair Outlook Sees AI Data Opportunity Tempered By Atlas And Leadership Uncertainty

Narrative Update Our updated analyst price target for MongoDB moves from $340.43 to $250.00, reflecting analysts' lower long term revenue growth assumptions, a slightly higher discount rate and a more conservative future P/E multiple, even as they highlight ongoing AI related opportunities and the recent post earnings selloff as a reset in expectations rather than a change in the core story. Analyst Commentary A wave of post earnings research on MongoDB has centered on resetting expectations after mixed guidance and a sharp pullback in the share price.
ACN
US$201.48
Accenture
7D
-4.1%
1Y
-37.9%
GDS
US$43.71
GDS Holdings
7D
14.3%
1Y
23.3%
GDDY
US$86.54
GoDaddy
7D
-2.4%
1Y
-50.4%

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.
GLOB
US$47.80
Globant
7D
-8.1%
1Y
-63.9%

GLOB: Reset Expectations And AI Transition Shape A More Balanced 2026 Outlook

Our analyst fair value estimate for Globant has been cut from $74 to $50 as analysts reset price targets lower across the Street, citing sector wide multiple compression, pressured near term growth, and lingering questions around the net impact of its rapidly scaling AI pod model despite solid Q4 results and stronger bookings. Analyst Commentary Street research around Globant has turned more cautious, with a series of lower price targets pointing to ongoing debate about how quickly the business can re-accelerate growth and how the market should value its transition toward AI driven offerings.
CTSH
US$62.43
Cognizant Technology Solutions
7D
-4.1%
1Y
-21.5%

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.