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U.S. IT Industry Analysis

UpdatedFeb 08, 2026
DataAggregated Company Financials
Companies124
  • 7D-6.9%
  • 3M-13.1%
  • 1Y-10.7%
  • YTD-8.9%

Over the last 7 days, the IT industry has dropped 6.9%, driven by a pullback from Shopify of 15%. Meanwhile, DigitalOcean Holdings actually outperformed within the industry, gaining 14% in the last week. Overall the industry is down 11% in 12 months. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Wed, 15 Feb 2023US$2.0tUS$460.4bUS$23.2b26.9x88.3x4.4x
Price to Earnings Ratio

88.3x


Total Market Cap: US$2.0tTotal Earnings: US$23.2bTotal Revenue: US$460.4bTotal 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 41.2x which is lower than its 3-year average PE of 68.9x.
  • 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-0.071%
Tech-1.49%
IT-6.90%
IT Consulting-5.54%
Data Processing Services-7.96%
Internet Services and Infrastructure-8.54%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.2x.
    • Analysts are expecting annual earnings growth of 14.9%, 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 32% 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 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
DOCN DigitalOcean HoldingsUS$62.9213.9%
+US$701.7m		40.5%PE22.9x
OKTA OktaUS$86.742.7%
+US$400.5m		-10.6%PE78.8x
GDS GDS HoldingsUS$46.484.0%
+US$358.7m		70.4%PE55.5x
APLD Applied DigitalUS$34.953.2%
+US$299.2m		348.7%PS37x
VNET VNET GroupUS$11.206.4%
+US$180.2m		24.4%PS2.2x

Latest News

ASGN
US$52.50
ASGN
7D
0.8%
1Y
-33.4%

ASGN Incorporated Just Missed Earnings - But Analysts Have Updated Their Models

Feb 07
ASGN Incorporated Just Missed Earnings - But Analysts Have Updated Their Models
GDS
US$46.48
GDS Holdings
7D
4.0%
1Y
70.4%
CTSH
US$77.08
Cognizant Technology Solutions
7D
-6.1%
1Y
-10.6%
VRSN
US$224.17
VeriSign
7D
-8.2%
1Y
1.3%
SNOW
US$168.43
Snowflake
7D
-12.6%
1Y
-8.5%

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.
VNET
US$11.20
VNET Group
7D
6.4%
1Y
24.4%

VNET: Higher 2025 Guidance Will Likely Not Justify Rich Earnings Multiple

Analysts have lifted their price target for VNET Group to US$6.51 from US$5.74, reflecting updated assumptions that combine a slightly higher discount rate, lower projected revenue growth, improved profit margins, and a reduced future P/E of about 29x compared with roughly 98x previously. What's in the News VNET Group raised its earnings guidance for the full year 2025, signaling updated expectations for its financial performance.
IT
US$156.33
Gartner
7D
-25.4%
1Y
-70.5%

IT: Fair Outlook Will Balance Expanded Buybacks With Reset Earnings Assumptions

Analysts have reset their price expectations for Gartner, cutting the fair value estimate from US$218 to US$150, citing revised assumptions for revenue growth, profit margins and future P/E multiples. What's in the News Between October 1, 2025 and December 31, 2025, Gartner repurchased 2,233,218 shares, about 3.06% of its shares, for US$599.11 million under its existing buyback program (Key Developments).
DXC
US$15.20
DXC Technology
7D
5.3%
1Y
-27.2%
DOCN
US$62.92
DigitalOcean Holdings
7D
13.9%
1Y
40.5%

DOCN: AI Partnerships And 2026 Software Setup Will Shape A Measured Outlook

Analysts have raised their fair value target for DigitalOcean to about US$56.17 from US$54, reflecting updated views on discount rates, long term revenue growth, profit margins and future P/E multiples in light of recent price target increases from major firms. Analyst Commentary Recent research updates on DigitalOcean reflect a mix of optimism on the setup for software names in 2026 and ongoing questions about execution and valuation risk.
APLD
US$34.95
Applied Digital
7D
3.2%
1Y
348.7%

APLD: Long-Term Hyperscale Leases And Power Access Will Support Future AI Demand

Analysts have lifted their price target for Applied Digital by about US$1.57, citing stronger expected revenue growth, updated discount rate assumptions, and higher implied future P/E multiples, tempered by more conservative profit margin expectations and increased confidence in hyperscaler leasing momentum and AI infrastructure demand. Analyst Commentary Recent Street research on Applied Digital has been broadly constructive, with multiple firms updating price targets and initiating coverage around the company’s AI focused data center and hyperscaler leasing story.
MDB
US$344.35
MongoDB
7D
-7.3%
1Y
23.9%

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.
IBM
US$298.93
International Business Machines
7D
-2.5%
1Y
18.5%

IBM: Broad Price Reset Will Highlight Confluent Deal And AI Initiatives

The analyst price target for International Business Machines has been raised from US$350 to US$390, reflecting updated assumptions around discount rates, margins and future P/E, alongside a broad wave of recent price target increases from multiple research firms. Analyst Commentary Bullish analysts have been lifting their price targets on International Business Machines in quick succession, with several moves clustered around the same dates.
SHOP
US$112.05
Shopify
7D
-14.6%
1Y
-4.6%

SHOP: AI Efficiencies And Q4 Execution Will Support Higher Earnings Power

The analyst fair value estimate for Shopify has increased from US$200 to about US$218, reflecting updated assumptions on revenue growth, profitability and future P/E following recent research highlighting Q4 fundamentals, AI driven operating leverage and a series of price target revisions and rating changes across the Street. Analyst Commentary Street research around Shopify has skewed constructive, with several bullish analysts revisiting their models and resetting price targets and ratings after recent earnings and product updates.
OKTA
US$86.74
Okta
7D
2.7%
1Y
-10.6%
ACN
US$240.62
Accenture
7D
-8.7%
1Y
-37.7%

ACN: GenAI Modernization Partnerships And Cannibalization Risks Will Steer Future Returns

Analysts have nudged their fair value estimate for Accenture higher to about $292, a move of roughly $3, as recent research highlights renewed interest in the stock, supported by fresh coverage and upward price target revisions tied to GenAI driven enterprise modernization potential. Analyst Commentary Bullish Takeaways Bullish analysts see Accenture as a relatively attractive way to gain exposure to GenAI driven enterprise modernization, with the current valuation framed as reasonable versus its own history.
KD
US$23.49
Kyndryl Holdings
7D
2.1%
1Y
-43.8%

KD: Agentic AI And Expanded Buybacks Will Support Future Upside

Analysts left their fair value estimate for Kyndryl Holdings essentially unchanged at US$37.60. This reflects only small tweaks to assumptions such as the discount rate, long term revenue growth, profit margin, and future P/E that did not materially alter their overall view.