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U.S. IT Industry Analysis

UpdatedFeb 16, 2026
DataAggregated Company Financials
Companies125
  • 7D-3.4%
  • 3M-8.8%
  • 1Y-16.7%
  • YTD-12.0%

Over the last 7 days, the IT industry has dropped 3.4%, driven by International Business Machines declining 11%. On the other hand Cloudflare is actually up 13%. However, the industry is down 17% over the past 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
Mon, 16 Feb 2026US$900.7bUS$256.5bUS$21.7b23.2x41.5x3.5x
Wed, 14 Jan 2026US$1.1tUS$252.7bUS$19.8b28.8x54.7x4.3x
Fri, 12 Dec 2025US$1.1tUS$282.1bUS$21.0b30x53.1x4x
Sun, 09 Nov 2025US$1.1tUS$280.3bUS$20.2b31.1x53.9x3.9x
Tue, 07 Oct 2025US$1.1tUS$282.7bUS$20.1b32.9x54.8x3.9x
Thu, 04 Sep 2025US$971.1bUS$250.9bUS$19.3b32.4x50.3x3.9x
Sat, 02 Aug 2025US$955.1bUS$243.3bUS$17.8b26.3x53.6x3.9x
Mon, 30 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.3x4.2x
Wed, 28 May 2025US$930.5bUS$240.2bUS$16.9b29.9x54.9x3.9x
Fri, 25 Apr 2025US$833.7bUS$242.3bUS$18.5b33.4x45.1x3.4x
Sun, 23 Mar 2025US$868.2bUS$240.8bUS$19.2b44.7x45.2x3.6x
Tue, 18 Feb 2025US$1.0tUS$239.4bUS$18.2b44.8x57x4.3x
Thu, 16 Jan 2025US$851.6bUS$234.1bUS$16.3b39.7x52.2x3.6x
Sat, 14 Dec 2024US$903.2bUS$233.2bUS$16.4b45.5x55.1x3.9x
Mon, 11 Nov 2024US$816.6bUS$233.2bUS$16.1b46.9x50.6x3.5x
Wed, 09 Oct 2024US$798.5bUS$232.8bUS$17.8b43.4x45x3.4x
Fri, 06 Sep 2024US$754.3bUS$233.3bUS$17.5b35.4x43x3.2x
Sun, 04 Aug 2024US$703.2bUS$232.5bUS$16.1b28.6x43.6x3x
Tue, 02 Jul 2024US$710.2bUS$237.0bUS$17.2b29.1x41.3x3x
Thu, 30 May 2024US$700.2bUS$237.0bUS$17.2b28x40.6x3x
Sat, 27 Apr 2024US$712.8bUS$228.0bUS$14.4b25.1x49.6x3.1x
Mon, 25 Mar 2024US$776.8bUS$227.6bUS$14.6b22.3x53.3x3.4x
Wed, 21 Feb 2024US$811.5bUS$227.5bUS$14.2b22.9x57.1x3.6x
Fri, 19 Jan 2024US$792.7bUS$229.4bUS$12.9b21.1x61.2x3.5x
Sun, 17 Dec 2023US$786.3bUS$229.0bUS$12.8b20.3x61.4x3.4x
Tue, 14 Nov 2023US$688.7bUS$228.4bUS$12.6b20.7x54.5x3x
Thu, 12 Oct 2023US$676.3bUS$227.2bUS$6.5b21.4x104.5x3x
Sat, 09 Sep 2023US$706.7bUS$226.6bUS$6.8b23.2x103.8x3.1x
Mon, 07 Aug 2023US$680.8bUS$226.3bUS$6.4b24x106.1x3x
Wed, 05 Jul 2023US$682.3bUS$228.6bUS$6.1b23.6x112x3x
Fri, 02 Jun 2023US$655.7bUS$228.2bUS$5.9b23x111.1x2.9x
Sun, 30 Apr 2023US$581.7bUS$225.4bUS$3.2b21.7x182.2x2.6x
Tue, 28 Mar 2023US$573.9bUS$225.5bUS$2.3b22.9x245.6x2.5x
Thu, 23 Feb 2023US$2.0tUS$462.1bUS$22.5b27.4x87.2x4.2x
Price to Earnings Ratio

87.2x


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 68.7x202420252026
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 41.5x which is lower than its 3-year average PE of 68.7x.
  • 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-1.34%
Tech-1.56%
IT-3.38%
Internet Services and Infrastructure5.67%
Data Processing Services-5.92%
IT Consulting-10.66%
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 14.1%, 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 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$195.8512.7%
+US$8.1b		14.4%PS31.8x
AKAM Akamai TechnologiesUS$111.7618.0%
+US$2.5b		11.7%PE31.7x
SNOW SnowflakeUS$182.293.6%
+US$2.2b		-2.8%PS14.2x
FSLY FastlyUS$18.26109.4%
+US$1.4b		126.3%PS4.4x
MDB MongoDBUS$368.403.0%
+US$865.2m		27.2%PS12.9x

Latest News

VNET
US$13.80
VNET Group
7D
16.5%
1Y
19.6%

VNET Group, Inc.'s (NASDAQ:VNET) 31% Share Price Surge Not Quite Adding Up

Feb 16
VNET Group, Inc.'s (NASDAQ:VNET) 31% Share Price Surge Not Quite Adding Up
CTSH
US$66.55
Cognizant Technology Solutions
7D
-10.8%
1Y
-26.6%

CTSH: AI Partnerships And Healthier Bookings Will Support Future Upside

Analysts have made a modest downward adjustment to their fair value estimate for Cognizant Technology Solutions, trimming the price target by about $0.52 to $90.88 as they weigh stronger projected revenue growth and slightly lower discount rates against softer margin and future P/E assumptions. Analyst Commentary Recent Street research on Cognizant Technology Solutions shows a mix of optimism and caution, with several firms adjusting price targets and ratings over the past few months.
TWLO
US$113.00
Twilio
7D
-3.4%
1Y
-9.7%
FSLY
US$18.26
Fastly
7D
109.4%
1Y
126.3%
AKAM
US$111.76
Akamai Technologies
7D
18.0%
1Y
11.7%
KD
US$12.24
Kyndryl Holdings
7D
15.6%
1Y
-70.7%
SHOP
US$112.70
Shopify
7D
-4.8%
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
12.7%
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
ACN
US$224.23
Accenture
7D
-5.3%
1Y
-42.2%
IBM
US$262.38
International Business Machines
7D
-11.5%
1Y
0.4%
EPAM
US$166.37
EPAM Systems
7D
-12.7%
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.
KC
US$14.48
Kingsoft Cloud Holdings
7D
7.9%
1Y
-30.4%

KC: Lower Discount Rate And Solid Margins Will Support Future Upside

Analysts have trimmed their price target on Kingsoft Cloud Holdings to reflect a modestly lower discount rate, slightly adjusted long term revenue growth and profit margin expectations, and a reduced forward P/E assumption of 52.55x. This results in a revised fair value of US$18.14 per share.
SNOW
US$182.29
Snowflake
7D
3.6%
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.
GDDY
US$89.12
GoDaddy
7D
-9.1%
1Y
-51.1%
APLD
US$35.28
Applied Digital
7D
-7.8%
1Y
287.3%

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$368.40
MongoDB
7D
3.0%
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.