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U.S. IT Industry Analysis

UpdatedFeb 19, 2026
DataAggregated Company Financials
Companies124
  • 7D-1.6%
  • 3M-7.4%
  • 1Y-16.1%
  • YTD-11.6%

Over the last 7 days, the IT industry has dropped 1.6%, driven by a pullback from International Business Machines of 4.4%. The industry has fallen 16% in the last year. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 19 Feb 2026US$884.4bUS$256.5bUS$21.7b22.9x40.7x3.4x
Sat, 17 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.3x4.2x
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
Price to Earnings Ratio

86.8x


Total Market Cap: US$1.9tTotal Earnings: US$22.4bTotal Revenue: US$462.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.6x202420252026
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 68.6x.
  • 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-0.74%
Tech-1.61%
IT-1.56%
Data Processing Services2.46%
Internet Services and Infrastructure0.90%
IT Consulting-3.80%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.0x.
    • Analysts are expecting annual earnings growth of 14.2%, 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
SHOP ShopifyUS$121.642.5%
+US$3.8b		-4.7%PE128.9x
AKAM Akamai TechnologiesUS$109.3115.3%
+US$2.1b		9.0%PE31x
FSLY FastlyUS$18.83102.3%
+US$1.4b		139.0%PS4.5x
NET CloudflareUS$191.441.1%
+US$714.3m		19.2%PS31.1x
DOCN DigitalOcean HoldingsUS$68.8610.4%
+US$591.0m		55.5%PE25x

Latest News

EPAM
US$167.69
EPAM Systems
7D
-5.8%
1Y
-35.0%
IBM
US$260.79
International Business Machines
7D
-4.4%
1Y
-1.3%

IBM: Execution Risks Around Confluent Integration Will Define Future Downside

Analysts have raised their price targets on International Business Machines, supporting a fair value increase from $198.00 to approximately $232.21. They attribute this change to updated assumptions regarding revenue growth, margins, and future P/E multiples.
AKAM
US$109.31
Akamai Technologies
7D
15.3%
1Y
9.0%

AKAM: Fair Outlook As AI Infrastructure And Compute Transition Tests Execution

The Akamai Technologies analyst price target has been raised by about $1.57 to align with Street research that points to improving revenue growth assumptions, a slightly lower discount rate and a higher future P/E. This is supported by analysts highlighting moderating delivery declines, steadier Security trends, accelerating compute growth and potential benefits from AI infrastructure demand.
FSLY
US$18.83
Fastly
7D
102.3%
1Y
139.0%

FSLY: Security Momentum Will Struggle To Offset Rising Execution Risk

We are lifting our Fastly fair value estimate from $14.00 to $15.00 per share. This change reflects a series of recent analyst price target increases that rely on higher assumed revenue growth, modestly stronger profit margins, a lower discount rate, and a reduced future P/E multiple in updated models.
SHOP
US$121.64
Shopify
7D
2.5%
1Y
-4.7%

SHOP: Rich Multiple And Mixed Sentiment Will Likely Cap Near-Term Upside

Analysts have trimmed our Shopify fair value estimate to $110 from about $139. This reflects lower price targets across the Street as models reset for softer revenue growth assumptions, slightly reduced margin expectations, and lower sector P/E multiples despite generally solid recent results.
VNET
US$12.46
VNET Group
7D
-8.0%
1Y
-4.4%

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
DOCN
US$68.86
DigitalOcean Holdings
7D
10.4%
1Y
55.5%

DigitalOcean Holdings, Inc. (NYSE:DOCN) Stock Rockets 29% As Investors Are Less Pessimistic Than Expected

Feb 14
DigitalOcean Holdings, Inc. (NYSE:DOCN) Stock Rockets 29% As Investors Are Less Pessimistic Than Expected
CTSH
US$66.81
Cognizant Technology Solutions
7D
-5.8%
1Y
-24.4%

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.
RXT
US$1.37
Rackspace Technology
7D
224.0%
1Y
-52.8%
KD
US$13.12
Kyndryl Holdings
7D
8.3%
1Y
-67.9%
NET
US$191.44
Cloudflare
7D
1.1%
1Y
19.2%

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
OKTA
US$82.93
Okta
7D
-6.0%
1Y
-14.5%
VRSN
US$218.55
VeriSign
7D
1.3%
1Y
-5.7%
ACN
US$223.61
Accenture
7D
-3.0%
1Y
-42.7%
SNOW
US$176.08
Snowflake
7D
-1.5%
1Y
-5.6%

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.
APLD
US$31.91
Applied Digital
7D
-11.8%
1Y
213.5%

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.