Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. IT Industry Analysis

UpdatedJun 24, 2026
DataAggregated Company Financials
Companies119
  • 7D-6.6%
  • 3M2.8%
  • 1Y-14.6%
  • YTD-14.1%

Over the last 7 days, the IT industry has dropped 6.6%, driven by Accenture declining 23%. On the other hand ChronoScale is actually up 35%. Overall the industry is down 15% in 12 months. As for the next few years, earnings are expected to grow by 23% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 24 Jun 2026US$859.8bUS$260.6bUS$20.2b16.1x42.5x3.3x
Fri, 22 May 2026US$838.8bUS$258.8bUS$20.8b21x40.3x3.2x
Sun, 19 Apr 2026US$888.6bUS$259.8bUS$21.6b22.2x41.2x3.4x
Tue, 17 Mar 2026US$863.1bUS$258.1bUS$21.5b20.5x40.1x3.3x
Thu, 12 Feb 2026US$944.9bUS$255.2bUS$22.5b24.5x42.1x3.7x
Sat, 10 Jan 2026US$1.1tUS$282.8bUS$21.0b30.9x52.5x3.9x
Mon, 08 Dec 2025US$1.1tUS$282.1bUS$21.0b30.3x52x3.9x
Wed, 05 Nov 2025US$1.1tUS$280.0bUS$20.0b28.9x57x4.1x
Fri, 03 Oct 2025US$1.1tUS$283.4bUS$20.1b32.7x53.5x3.8x
Sun, 31 Aug 2025US$988.2bUS$250.9bUS$19.3b32.7x51.2x3.9x
Tue, 29 Jul 2025US$978.8bUS$242.9bUS$17.7b27.8x55.3x4x
Thu, 26 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.9x4.2x
Sat, 24 May 2025US$940.5bUS$240.2bUS$16.9b29x55.5x3.9x
Mon, 21 Apr 2025US$804.6bUS$242.4bUS$18.5b33.9x43.5x3.3x
Wed, 19 Mar 2025US$885.5bUS$240.0bUS$18.7b43.2x47.4x3.7x
Fri, 14 Feb 2025US$997.2bUS$234.9bUS$16.9b52x59x4.2x
Sun, 12 Jan 2025US$855.5bUS$234.0bUS$16.5b38.9x52x3.7x
Tue, 10 Dec 2024US$922.3bUS$233.2bUS$16.4b47x56.3x4x
Thu, 07 Nov 2024US$780.2bUS$233.2bUS$16.1b45.5x48.3x3.3x
Sat, 05 Oct 2024US$791.5bUS$232.9bUS$17.8b43.3x44.6x3.4x
Mon, 02 Sep 2024US$761.2bUS$233.3bUS$17.5b38.4x43.4x3.3x
Wed, 31 Jul 2024US$741.6bUS$237.1bUS$17.4b29.2x42.7x3.1x
Fri, 28 Jun 2024US$702.9bUS$237.1bUS$17.2b27.9x40.9x3x
Sun, 26 May 2024US$707.2bUS$237.0bUS$17.2b28.2x41x3x
Tue, 23 Apr 2024US$719.3bUS$227.7bUS$13.7b24x52.3x3.2x
Thu, 21 Mar 2024US$804.9bUS$227.7bUS$14.4b22.7x56x3.5x
Sat, 17 Feb 2024US$839.7bUS$227.5bUS$14.2b23.4x59.1x3.7x
Mon, 15 Jan 2024US$799.2bUS$229.4bUS$12.9b20.7x61.8x3.5x
Wed, 13 Dec 2023US$770.8bUS$229.0bUS$12.8b20.6x60.2x3.4x
Fri, 10 Nov 2023US$690.1bUS$228.4bUS$12.6b20.6x54.6x3x
Sun, 08 Oct 2023US$668.4bUS$227.2bUS$6.5b22.3x103.3x2.9x
Tue, 05 Sep 2023US$710.1bUS$226.6bUS$6.8b21.9x104.4x3.1x
Thu, 03 Aug 2023US$686.5bUS$226.7bUS$6.4b23.6x106.9x3x
Sat, 01 Jul 2023US$679.5bUS$228.6bUS$6.1b23.6x111.5x3x
Price to Earnings Ratio

111.5x


Total Market Cap: US$679.5bTotal Earnings: US$6.1bTotal Revenue: US$228.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 56.4x202420252026
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 42.5x which is lower than its 3-year average PE of 56.4x.
  • 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 grown 49% per year over the last three years.
  • Revenues for these companies have grown 4.5% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

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

US Market-2.31%
Tech-1.40%
IT-6.57%
Internet Services and Infrastructure-4.77%
Data Processing Services-5.83%
IT Consulting-9.03%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry, which is trading close to its 3-year average PE ratio of 27.7x.
    • Analysts are expecting annual earnings growth of 13.2%, which is lower than the prior year's growth of 25.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 34% over the next 5 years.
  • However this is lower than its past earnings growth rate of 88% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 7.7% 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
CHRN ChronoScaleUS$25.8235.0%
+US$962.2m		743.8%PS44x
WYFI WhiteFiberUS$44.7625.6%
+US$351.8m		n/aPS20.9x
OKTA OktaUS$118.161.6%
+US$328.5m		19.9%PE83.1x
RXT Rackspace TechnologyUS$7.2717.1%
+US$264.2m		477.0%PS0.7x
AIAI AIAI HoldingsUS$16.6312.1%
+US$125.9m		n/aPE-299.9x

Latest News

CTSH
US$40.95
Cognizant Technology Solutions
7D
-19.8%
1Y
-47.2%
NET
US$224.94
Cloudflare
7D
-2.6%
1Y
20.7%
SHOP
US$107.68
Shopify
7D
-4.9%
1Y
-5.9%
IBM
US$264.94
International Business Machines
7D
-2.2%
1Y
-9.8%
Seeking Alpha • 19h

IBM's Big AI Move Warrants Attention, But Not An Upgrade

Summary International Business Machines Corporation maintains strong revenue, profit, and cash flow growth, driven by robust performance in Software, Consulting, and Infrastructure segments. Recent partnership with OpenAI's Daybreak Cyber Partner Program and Project Lightwell highlights IBM's strategic push into enterprise AI-driven cybersecurity. Software segment annual recurring revenue reached $24.6 billion, with notable growth in Hybrid Cloud (Red Hat), Automation, and Data units fueled by AI and acquisitions. Despite operational momentum and innovation, IBM remains a Hold due to relatively high valuation compared to peers, though an upgrade could be justified if trends persist. Read the full article on Seeking Alpha
ACN
US$127.01
Accenture
7D
-23.3%
1Y
-57.8%
OKTA
US$118.16
Okta
7D
1.6%
1Y
19.9%
Narrative Update • Jun 23

OKTA: AI Agent Identity Security And Governance Will Drive Future Upside

Analysts have lifted the Okta fair value estimate from $133.38 to $148.28, reflecting higher Street price targets clustered around $120 to $140 after strong Q1 execution, improving profit margin expectations, and early traction in agentic AI products, even though some view the stock as fully valued in the near term. Analyst Commentary Street research around Okta remains active, with most recent notes pointing to solid Q1 execution, higher price targets, and growing attention on agentic AI products, even as some firms flag valuation as tight after the stock's sharp move.
CRWV
US$105.72
CoreWeave
7D
-9.7%
1Y
-38.8%
Seeking Alpha • Jun 22

CoreWeave's Liquidity Shock Meets AI Scale

Summary Nasdaq-100 and Russell inclusion create mechanical buying pressure into CRWV’s tightly held, momentum-driven float structure. Revenue surged from $982 million to $2.078 billion YoY, driven by accelerating AI infrastructure demand and deployment scale. ~$100B backlog signals strong visibility but remains highly concentrated among frontier AI labs and compute-heavy customers. Vera Rubin NVL72 boosts inference exposure while increasing GPU turnover speed and long-term depreciation pressure risk. Read the full article on Seeking Alpha
WYFI
US$44.76
WhiteFiber
7D
25.6%
1Y
n/a
Analysis Article • Jun 19

WhiteFiber (WYFI) Stock Looks 9% Overvalued After $100 Million AI Infrastructure Loan

WhiteFiber (WYFI) drew fresh investor attention after securing a $100 million delayed-draw term loan facility from majority owner Bit Digital, with the potential to expand to $150 million, to support its AI infrastructure buildout. See our latest analysis for WhiteFiber. That funding headline has arrived alongside sharp gains in WhiteFiber’s stock, with a 1-day share price return of 14.8% and a 90-day share price return of 177.9%. This points to strong recent momentum after a slower start to...
VRSN
US$247.22
VeriSign
7D
-9.7%
1Y
-13.3%
Narrative Update • Jun 18

VRSN: 2026 Guidance And Buybacks Will Challenge Raised Stock Expectations

VeriSign's analyst price targets have increased by a combined $80 across recent reports, as analysts point to modest adjustments in revenue growth expectations, profit margin assumptions, discount rates, and future P/E estimates in their updated models. Analyst Commentary Recent research on VeriSign highlights a split view, with headline price target increases contrasted by more cautious commentary around what needs to go right to support those targets.
RXT
US$7.27
Rackspace Technology
7D
17.1%
1Y
477.0%
Analysis Article • Jun 17

Rackspace Technology (RXT) Stock Could Be 187% Overvalued After AMD AI Deal And Job Cuts

Rackspace Technology (RXT) stock is reacting to twin announcements: a definitive agreement with AMD for 30 MW of AI compute across its global data centers, and a 15% workforce reduction tied to its governed enterprise AI focus. See our latest analysis for Rackspace Technology. The Rackspace Technology share price is up 4.99% over the last day and has a 7 day share price return of 33.26%, adding to a 90 day gain of 235.68% and a very large year to date rise. The 1 year total shareholder return...
SNOW
US$230.41
Snowflake
7D
-3.3%
1Y
3.3%
Narrative Update • Jun 17

SNOW: AI Data Cloud Partnerships Will Drive Future Stock Adoption

Snowflake stock's analyst fair value estimate has been lifted from $336.74 to $400.61, as analysts point to broad price target increases across the Street tied to stronger AI workload adoption around Cortex Code, CoCo and the newer agentic platform unveiled at Snowflake Summit 2026. Analyst Commentary Recent research on Snowflake centers on how the company is executing around AI, particularly Cortex Code, CoCo, CoWork, Snowflake Intelligence, and the newer agentic platform.
CHRN
US$25.82
ChronoScale
7D
35.0%
1Y
743.8%
Seeking Alpha • Jun 15

ChronoScale Goes Independent, Freeing Up Capital For Growth

Summary ChronoScale Corporation is a newly independent AI infrastructure operator spun out from Applied Digital, aiming to scale purpose-built compute capacity. CHRN trades at a steep 35.2x price/sales multiple with limited financial disclosure, making the current valuation appear expensive relative to its $75mm FY25 revenue. I recommend a Hold rating on CHRN until its initial financial statements are released, given the lack of transparency and elevated trading premium. Strategic leadership hires and capital flexibility position CHRN for potential high growth, but investors should await clarity on its standalone financial health. Read the full article on Seeking Alpha
TSSI
US$12.72
TSS
7D
2.6%
1Y
-55.3%
WYY
US$15.27
WidePoint
7D
19.8%
1Y
354.5%
Narrative Update • Jun 08

WYY: New Bottler Outsourcing Win Will Likely Mask Future Equity Dilution

Analysts have raised their price target on WidePoint to $9.50 from $9.33, citing updated assumptions for the discount rate, revenue growth, profit margin, and future P/E as the key factors behind this revision. What's in the News WidePoint has been selected by a leading national bottler to outsource Procurement and Vendor Management, becoming the bottler's exclusive provider for these services.
AIB
US$2.15
BlockchAIn Digital Infrastructure
7D
7.0%
1Y
-81.2%
AIAI
US$16.63
AIAI Holdings
7D
12.1%
1Y
n/a