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U.S. IT Consulting Industry Analysis

UpdatedAug 27, 2026
DataAggregated Company Financials
Companies77
  • 7D-2.0%
  • 3M-6.6%
  • 1Y-17.6%
  • YTDn/a

Over the last 7 days, the IT Consulting industry has dropped 2.0%, driven by a pullback from International Business Machines of 3.1%. However, the industry is down 18% over the past year. Looking forward, earnings are forecast to grow by 8.1% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 27 Aug 2026US$403.6bUS$212.3bUS$21.2b15.5x19.1x1.9x
Sat, 25 Jul 2026US$335.9bUS$211.9bUS$20.9b12.4x16x1.6x
Mon, 22 Jun 2026US$355.2bUS$211.6bUS$21.3b12.1x16.7x1.7x
Wed, 20 May 2026US$367.5bUS$210.7bUS$21.7b15x17x1.7x
Fri, 17 Apr 2026US$420.3bUS$215.1bUS$22.7b15.6x18.6x2x
Sun, 15 Mar 2026US$425.2bUS$213.7bUS$22.6b16x18.8x2x
Tue, 10 Feb 2026US$516.7bUS$213.4bUS$22.8b19.1x22.7x2.4x
Thu, 08 Jan 2026US$588.6bUS$241.4bUS$21.2b23.2x27.8x2.4x
Sat, 06 Dec 2025US$585.6bUS$240.6bUS$21.3b24.7x27.5x2.4x
Mon, 03 Nov 2025US$571.5bUS$239.9bUS$21.3b21.4x26.8x2.4x
Wed, 01 Oct 2025US$506.4bUS$208.2bUS$18.6b20.8x27.2x2.4x
Fri, 29 Aug 2025US$484.9bUS$207.0bUS$18.9b22.9x25.7x2.3x
Sun, 27 Jul 2025US$530.5bUS$206.4bUS$19.0b24.4x27.9x2.6x
Tue, 24 Jun 2025US$553.2bUS$205.3bUS$18.7b24.1x29.6x2.7x
Thu, 22 May 2025US$564.9bUS$204.0bUS$18.4b27.2x30.7x2.8x
Sat, 19 Apr 2025US$503.6bUS$203.5bUS$18.5b26.4x27.3x2.5x
Mon, 17 Mar 2025US$551.0bUS$202.6bUS$18.3b33x30.1x2.7x
Wed, 12 Feb 2025US$617.0bUS$202.6bUS$18.1b39.2x34x3x
Fri, 10 Jan 2025US$562.2bUS$202.4bUS$18.2b34.2x30.9x2.8x
Sun, 08 Dec 2024US$584.5bUS$201.1bUS$17.8b41.7x32.8x2.9x
Tue, 05 Nov 2024US$535.1bUS$202.4bUS$17.4b43.8x30.7x2.6x
Thu, 03 Oct 2024US$564.1bUS$203.1bUS$19.5b38.3x28.9x2.8x
Sat, 31 Aug 2024US$526.1bUS$202.6bUS$19.2b34.5x27.4x2.6x
Mon, 29 Jul 2024US$510.1bUS$203.2bUS$19.0b30.6x26.8x2.5x
Wed, 26 Jun 2024US$471.9bUS$203.2bUS$18.8b29.2x25.1x2.3x
Fri, 24 May 2024US$472.5bUS$203.3bUS$18.9b26.2x25x2.3x
Sun, 21 Apr 2024US$481.1bUS$199.2bUS$17.1b21.6x28.1x2.4x
Tue, 19 Mar 2024US$537.4bUS$199.1bUS$17.0b21.9x31.6x2.7x
Thu, 15 Feb 2024US$523.3bUS$199.2bUS$17.1b22.4x30.6x2.6x
Sat, 13 Jan 2024US$509.7bUS$199.8bUS$16.4b20x31x2.6x
Mon, 11 Dec 2023US$486.1bUS$199.4bUS$16.3b20.4x29.8x2.4x
Wed, 08 Nov 2023US$446.5bUS$199.4bUS$16.2b19.1x27.6x2.2x
Fri, 06 Oct 2023US$436.7bUS$198.8bUS$11.4b18.9x38.4x2.2x
Sun, 03 Sep 2023US$458.9bUS$198.3bUS$11.7b21.3x39.3x2.3x
Price to Earnings Ratio

39.3x


Total Market Cap: US$458.9bTotal Earnings: US$11.7bTotal Revenue: US$198.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Consulting Industry Price to Earnings3Y Average 27.4x202420252026
Current Industry PE
  • Investors are pessimistic on the American IT Consulting and Other Services 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 19.1x which is lower than its 3-year average PE of 27.4x.
  • The 3-year average PS ratio of 2.4x is higher than the industry's current PS ratio of 1.9x.
Past Earnings Growth
  • The earnings for companies in the IT Consulting and Other Services industry have grown 22% per year over the last three years.
  • Revenues for these companies have grown 2.3% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Comparison

How does U.S. IT Consulting compare with similar industries?

US Market-0.42%
Tech-0.84%
IT-1.43%
IT Consulting-1.98%
Data Processing Services1.90%
Internet Services and Infrastructure-1.06%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
CTSH Cognizant Technology SolutionsUS$62.091.9%
+US$522.5m		-14.1%PE12.6x
DOX AmdocsUS$62.253.4%
+US$213.0m		-28.6%PE14.3x
EPAM EPAM SystemsUS$109.361.9%
+US$102.7m		-37.0%PE14x
KD Kyndryl HoldingsUS$12.682.4%
+US$65.3m		-59.8%PE31.7x
RPGL Republic Power GroupUS$2.32-3.7%
US$34.8m		n/aPE87x

Latest News

ACN
US$181.38
Accenture
7D
-1.0%
1Y
-29.5%
DOX
US$62.25
Amdocs
7D
3.4%
1Y
-28.6%
Seeking Alpha • 19h

Amdocs Offers A Clear Value Case

Summary Amdocs offers steady cash flow, resilient margins, and a robust backlog yet trades at deep discounts to sector averages. DOX maintains strong free cash flow guidance ($710–$730 million for FY26), with 90% conversion from non-GAAP net income and a $4.26 billion backlog. Capital returns remain attractive: a 3.57% dividend yield, consistent buybacks, and ample liquidity with $206 million cash and $520 million in unused revolver. I reiterate a Buy rating; risk/reward is compelling, as the market prices in an unwarranted long-term decline despite stable performance and upside from AI and cloud. Read the full article on Seeking Alpha
EPAM
US$109.36
EPAM Systems
7D
1.9%
1Y
-37.0%
QNT
US$53.29
Quantinuum
7D
-4.8%
1Y
n/a
New Narrative • Aug 26

Quantum Cloud Partnerships And Government Support Will Drive Long Term Upside Potential

Catalysts About Quantinuum Quantinuum develops full stack quantum computing systems that combine hardware, software and applications for enterprise and research use. What are the underlying business or industry changes driving this perspective?
IBM
US$229.87
International Business Machines
7D
-3.1%
1Y
-6.1%
Narrative Update • Aug 26

IBM: AI Spending Shift Will Delay Software And Mainframe Earnings Execution

IBM's analyst fair value estimate has been revised to $174 from $195 as analysts factor in a slightly higher discount rate, more cautious revenue and margin assumptions, and a lower future P/E multiple following recent price target cuts across the Street. Analyst Commentary Recent Street commentary on International Business Machines highlights a clear shift toward more cautious expectations, with several research houses cutting price targets and, in some cases, lowering ratings following the company’s Q2 preannouncement and subsequent results.
DAVA
US$3.22
Endava
7D
3.5%
1Y
-77.7%
Seeking Alpha • Aug 25

Endava: Innovation At The Cost Of Profitability

Summary Endava is transitioning to AI-driven services but faces margin erosion, lower utilization, and rising training costs amid weak client CapEx. I rate DAVA a Hold, pending clear stabilization of core revenues and improvement in cash flow, given operational and financial headwinds. AI-related revenue rose to 15% in Q3, but overall revenue declined 8.4% YoY, and adjusted pre-tax margin collapsed to 1.8%. Valuation appears extremely low (EV/Revenue 0.37x, P/E 3.7x), but negative FCF, rising debt, and contract execution risks require caution. Read the full article on Seeking Alpha
GLOB
US$38.79
Globant
7D
-1.8%
1Y
-42.8%
KD
US$12.68
Kyndryl Holdings
7D
2.4%
1Y
-59.8%
Narrative Update • Aug 21

KD: Agentic AI Services Will Reframe Future Risk Profile

Analysts have adjusted their price target on Kyndryl Holdings from $15.00 to $16.00, citing updated assumptions around fair value, discount rate, revenue growth, profit margins, and future P/E expectations. What’s in the News for Kyndryl Holdings Kyndryl reported Q1 fiscal 2027 results with revenue of US$3.6b and a pretax loss of US$69 million, driven in part by US$152 million in workforce rebalancing charges.
CLPS
US$1.07
CLPS Incorporation
7D
25.1%
1Y
2.9%
BBAI
US$3.05
BigBear.ai Holdings
7D
-3.8%
1Y
-40.5%
Seeking Alpha • Aug 20

BigBear.ai: Trading At A Premium While Fundamentals Deteriorate

Summary BigBear.ai remains a 'Sell' as revenue growth is lackluster and operating margins have worsened, despite a recent stock correction. BBAI’s pivot to defense via ConductorOS has failed to deliver large contracts, with most wins being small pilot projects under $5 million. Recent customer wins in Ask Sage and CargoSeer lack disclosed contract values, reinforcing concerns about limited growth and scalability. At an 11.45x TTM PS multiple, BBAI is overvalued relative to highly profitable, faster-growing peers, with no compelling re-rating catalysts in sight. Read the full article on Seeking Alpha
RPGL
US$2.32
Republic Power Group
7D
-3.7%
1Y
n/a
IT
US$192.96
Gartner
7D
0.07%
1Y
-21.7%
Narrative Update • Aug 19

IT: Higher Margins And Buybacks Should Support Undervalued Shares Over Time

Analysts have raised their price target on Gartner from $203 to $229 as they factor in updated assumptions that combine slightly lower projected revenue growth with a higher forecast profit margin and a modestly higher future P/E multiple. What’s in the News for Gartner Gartner reported strong Q2 2026 results, with Contract Value, revenue, Adjusted EBITDA excluding divested operations, Adjusted EPS, and free cash flow all ahead of expectations.
CTSH
US$62.09
Cognizant Technology Solutions
7D
1.9%
1Y
-14.1%
Narrative Update • Aug 18

CTSH: AI Builder Wins And Large Deals Will Drive Future Repricing

Cognizant Technology Solutions' analyst fair value estimate has been updated from $108.00 to about $83.70, reflecting analysts' revised expectations for revenue growth, margins, and future P/E following a mix of reduced and raised price targets across the Street. Analyst Commentary Recent research on Cognizant Technology Solutions highlights a wide range of views, with several bullish analysts pointing to improving execution, solid bookings, and sector relative value as key supports for the stock's valuation.
GDYN
US$7.72
Grid Dynamics Holdings
7D
-3.3%
1Y
-4.3%
Narrative Update • Aug 16

GDYN: AI-Led Coding Advances Will Pressure Future Earnings Power

Analysts nudged the fair value estimate for Grid Dynamics Holdings higher, with the implied price target rising by $1.00 to $9.00. They cited recent price target increases from TD Cowen and JPMorgan, along with research that points to slightly firmer revenue growth, margins, and a higher assumed future P/E multiple.
CINT
US$3.37
CI&T
7D
-8.4%
1Y
-37.6%
Analysis Article • Aug 14

CI&T Inc. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a good week for CI&T Inc. ( NYSE:CINT ) shareholders, because the company has just released its latest...
DXC
US$10.55
DXC Technology
7D
-2.8%
1Y
-26.3%