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U.S. IT Industry Analysis

UpdatedAug 23, 2026
DataAggregated Company Financials
Companies121
  • 7D-2.8%
  • 3M14.8%
  • 1Y8.6%
  • YTD-1.0%

Over the last 7 days, the IT industry has dropped 2.8%, driven by pullbacks in CoreWeave and Cloudflare of 17% and 7.2%, respectively. This takes the industry's 12 month performance to a gain of 8.6%. Earnings are forecast to grow by 23% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 23 Aug 2026US$1.0tUS$264.7bUS$20.9b17.2x49x3.9x
Tue, 21 Jul 2026US$883.8bUS$260.7bUS$19.9b18.3x44.4x3.4x
Thu, 18 Jun 2026US$933.4bUS$259.6bUS$20.1b17.8x46.5x3.6x
Sat, 16 May 2026US$808.1bUS$258.7bUS$20.5b20.7x39.4x3.1x
Mon, 13 Apr 2026US$783.2bUS$259.8bUS$21.6b19.8x36.3x3x
Wed, 11 Mar 2026US$888.7bUS$258.0bUS$21.5b20.4x41.3x3.4x
Fri, 06 Feb 2026US$905.9bUS$255.1bUS$22.6b25.6x40.1x3.6x
Sun, 04 Jan 2026US$1.1tUS$282.9bUS$20.9b28.8x50.4x3.7x
Tue, 02 Dec 2025US$1.1tUS$281.5bUS$20.9b28.3x51x3.8x
Thu, 30 Oct 2025US$1.2tUS$283.6bUS$22.0b28.9x52.8x4.1x
Sat, 27 Sep 2025US$1.0tUS$251.9bUS$19.1b31.3x53.2x4x
Mon, 25 Aug 2025US$953.0bUS$250.5bUS$19.3b30.8x49.5x3.8x
Wed, 23 Jul 2025US$1.0tUS$241.7bUS$17.3b27.6x57.9x4.2x
Fri, 20 Jun 2025US$995.8bUS$240.4bUS$17.1b27.2x58.3x4.1x
Sun, 18 May 2025US$943.4bUS$239.9bUS$16.9b29.7x55.8x3.9x
Tue, 15 Apr 2025US$808.0bUS$242.3bUS$18.5b33.3x43.7x3.3x
Thu, 13 Mar 2025US$875.7bUS$240.0bUS$18.7b47.3x46.9x3.6x
Sat, 08 Feb 2025US$978.3bUS$234.2bUS$16.3b48.1x60.1x4.2x
Mon, 06 Jan 2025US$871.5bUS$234.0bUS$16.5b49.1x53x3.7x
Wed, 04 Dec 2024US$893.3bUS$233.1bUS$16.3b46.1x54.9x3.8x
Fri, 01 Nov 2024US$772.1bUS$233.2bUS$15.9b44.3x48.5x3.3x
Sun, 29 Sep 2024US$796.7bUS$233.8bUS$17.8b40.3x44.7x3.4x
Tue, 27 Aug 2024US$751.9bUS$233.1bUS$17.4b34.4x43.1x3.2x
Thu, 25 Jul 2024US$743.4bUS$236.9bUS$17.2b29.6x43.3x3.1x
Sat, 22 Jun 2024US$699.9bUS$237.1bUS$17.2b27.8x40.7x3x
Mon, 20 May 2024US$716.6bUS$236.8bUS$17.3b25.3x41.5x3x
Wed, 17 Apr 2024US$725.5bUS$227.7bUS$13.7b24.6x52.8x3.2x
Fri, 15 Mar 2024US$816.1bUS$227.7bUS$14.4b22.7x56.8x3.6x
Sun, 11 Feb 2024US$856.9bUS$226.8bUS$13.1b22.7x65.4x3.8x
Tue, 09 Jan 2024US$758.6bUS$229.5bUS$12.8b20x59.1x3.3x
Thu, 07 Dec 2023US$751.2bUS$229.0bUS$12.8b21.1x58.7x3.3x
Sat, 04 Nov 2023US$679.2bUS$228.3bUS$12.1b19.8x55.9x3x
Mon, 02 Oct 2023US$662.3bUS$227.2bUS$6.5b24.3x102.4x2.9x
Wed, 30 Aug 2023US$686.8bUS$226.3bUS$6.6b21.6x103.7x3x
Price to Earnings Ratio

103.7x


Total Market Cap: US$686.8bTotal Earnings: US$6.6bTotal Revenue: US$226.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 53x202420252026
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 49.0x which is lower than its 3-year average PE of 53.0x.
  • 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 47% per year over the last three years.
  • Revenues for these companies have grown 5.4% 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-1.49%
Tech-3.51%
IT-2.83%
Data Processing Services5.02%
IT Consulting1.77%
Internet Services and Infrastructure-5.62%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.9x.
    • Analysts are expecting annual earnings growth of 13.8%, which is lower than the prior year's growth of 15.4% 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.
  • However this is lower than its past earnings growth rate of 90% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.1% 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
ACN AccentureUS$185.284.7%
+US$5.1b		-28.5%PE14.6x
CTSH Cognizant Technology SolutionsUS$61.875.2%
+US$1.4b		-14.5%PE12.6x
SNOW SnowflakeUS$332.781.2%
+US$1.3b		69.1%PS22.9x
IBM International Business MachinesUS$235.680.6%
+US$1.3b		-2.6%PE20.7x
IT GartnerUS$195.908.2%
+US$935.2m		-21.6%PE16x

Latest News

CHRN
US$23.85
ChronoScale Holdings
7D
13.9%
1Y
571.7%
TWLO
US$225.30
Twilio
7D
-5.4%
1Y
111.8%
EPAM
US$110.34
EPAM Systems
7D
9.8%
1Y
-36.9%
Narrative Update • Aug 21

EPAM: AI Native Momentum Will Offset North America Reset Concerns

Analysts have nudged their average price target on EPAM Systems lower to reflect a reduced fair value estimate of about $122.82, citing slower expected revenue growth, slightly softer profit margins, and more cautious P/E assumptions following recent Q2 guidance updates and sector headwinds. Analyst Commentary Recent research on EPAM Systems points to a mixed setup for the stock, with analysts reassessing both the company specific execution story and the sector backdrop.
IBM
US$235.68
International Business Machines
7D
0.6%
1Y
-2.6%
ACN
US$185.28
Accenture
7D
4.7%
1Y
-28.5%
Seeking Alpha • Aug 21

Accenture: Bears Are On Wrong Side Of High-ARR AI SaaS-Ification Trend

Summary Accenture plc is undergoing a strategic shift toward high-margin SaaS and OT cybersecurity, decoupling revenue from headcount and targeting a $240B mid-market TAM. I upgrade ACN to Strong Buy, citing a compressed ~13.1x forward P/E versus a potential re-rating to ~23.15x as SaaS revenue grows and platform integration accelerates. ACN is deploying $9B in M&A, acquiring OT cybersecurity assets at ~20x EV/ARR, which, if integrated smoothly, could drive 50%+ ARR growth and margin expansion. Key risks include AI hardware CapEx crowding-out, M&A integration challenges, and short-term consulting revenue pressure; monitoring Edge adoption, book-to-bill, and margin guidance is critical. Read the full article on Seeking Alpha
CRWV
US$87.85
CoreWeave
7D
-16.5%
1Y
-6.5%
Narrative Update • Aug 21

CRWV: Heavy Debt And Financing Needs Will Restrain AI Infrastructure Upside

CoreWeave's updated analyst price target has moved higher to reflect raised revenue, margin, and backlog expectations, as analysts point to stronger AI infrastructure demand, larger contracted power additions, and improved profitability guidance across recent Q2 research updates. Analyst Commentary Recent research on CoreWeave reflects a broad range of views, even as many firms increase price targets following the latest Q2 updates.
MDB
US$430.83
MongoDB
7D
-6.4%
1Y
96.7%
DOX
US$61.40
Amdocs
7D
5.5%
1Y
-30.4%
OKTA
US$135.14
Okta
7D
-8.3%
1Y
46.8%
SHOP
US$149.25
Shopify
7D
-3.3%
1Y
5.0%
Narrative Update • Aug 20

SHOP: AI And Agentic Commerce Euphoria Will Pressure Future Return Multiples

Shopify's analyst fair value estimate has been updated from $105.00 to about $123.66 as analysts factor in stronger modeled revenue growth and a slightly higher future P/E multiple, while acknowledging some pressure on projected profit margins and using a higher discount rate. Analyst Commentary Recent research coverage on Shopify points to generally constructive sentiment, with many firms lifting price targets after the latest quarterly results.
DOCN
US$115.64
DigitalOcean Holdings
7D
-11.0%
1Y
266.8%
IT
US$195.90
Gartner
7D
8.2%
1Y
-21.6%
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.
SNOW
US$332.78
Snowflake
7D
1.2%
1Y
69.1%
NET
US$293.14
Cloudflare
7D
-7.2%
1Y
49.4%
CTSH
US$61.87
Cognizant Technology Solutions
7D
5.2%
1Y
-14.5%
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.
AKAM
US$110.42
Akamai Technologies
7D
-11.7%
1Y
42.2%
Narrative Update • Aug 13

AKAM: High Cloud Capex And Weaker Margins Will Constrain Future Upside

Akamai Technologies' updated price target of $105.99, up from $103.65, reflects analysts' mixed responses to recent cuts in Street targets that cite timing noise in the outlook, pressure on cloud infrastructure margins and high capex, alongside prior optimism around its role as an AI infrastructure provider. Analyst Commentary Recent Street research on Akamai Technologies points to a more cautious tone around the stock.