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U.S. IT Industry Analysis

UpdatedDec 16, 2025
DataAggregated Company Financials
Companies121
  • 7D-1.0%
  • 3M6.3%
  • 1Y13.0%
  • YTD19.2%

Over the last 7 days, the IT industry has dropped 1.0%, driven by a pullback from CoreWeave of 20%. In the past year, the industry has gained 13%. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Dec 2025US$1.1tUS$282.1bUS$21.0b29.8x52.1x3.9x
Thu, 13 Nov 2025US$1.1tUS$280.8bUS$20.5b31.2x53.6x3.9x
Sat, 11 Oct 2025US$1.1tUS$282.5bUS$20.0b30.7x55.8x4x
Mon, 08 Sep 2025US$983.7bUS$250.9bUS$19.3b29.3x50.9x3.9x
Wed, 06 Aug 2025US$943.0bUS$243.6bUS$17.9b26.2x52.7x3.9x
Fri, 04 Jul 2025US$1.0tUS$241.7bUS$17.4b29.5x59.3x4.3x
Sun, 01 Jun 2025US$948.3bUS$240.3bUS$17.0b29x55.7x3.9x
Tue, 29 Apr 2025US$841.9bUS$242.4bUS$18.0b31.6x46.9x3.5x
Thu, 27 Mar 2025US$890.7bUS$240.8bUS$19.2b45.1x46.3x3.7x
Sat, 22 Feb 2025US$976.6bUS$239.7bUS$18.2b40.2x53.8x4.1x
Mon, 20 Jan 2025US$872.5bUS$234.1bUS$16.3b42.1x53.4x3.7x
Wed, 18 Dec 2024US$896.3bUS$233.2bUS$16.4b43.8x54.7x3.8x
Fri, 15 Nov 2024US$866.7bUS$232.6bUS$16.3b46.9x53.1x3.7x
Sun, 13 Oct 2024US$823.0bUS$232.9bUS$17.8b43.4x46.3x3.5x
Tue, 10 Sep 2024US$746.6bUS$233.3bUS$17.6b35.4x42.5x3.2x
Thu, 08 Aug 2024US$690.7bUS$232.5bUS$16.1b28.3x42.9x3x
Sat, 06 Jul 2024US$720.0bUS$237.0bUS$17.2b28.5x41.9x3x
Mon, 03 Jun 2024US$671.5bUS$237.1bUS$17.3b28.3x38.8x2.8x
Wed, 01 May 2024US$699.4bUS$228.0bUS$14.3b24.9x48.9x3.1x
Fri, 29 Mar 2024US$781.0bUS$227.7bUS$13.8b22.6x56.5x3.4x
Sun, 25 Feb 2024US$827.0bUS$227.5bUS$14.2b22x58.2x3.6x
Tue, 23 Jan 2024US$818.4bUS$229.4bUS$12.9b22.4x63.2x3.6x
Thu, 21 Dec 2023US$787.8bUS$229.5bUS$12.8b20.3x61.5x3.4x
Sat, 18 Nov 2023US$717.0bUS$228.4bUS$12.7b20.7x56.5x3.1x
Mon, 16 Oct 2023US$651.0bUS$227.2bUS$6.5b20.7x100.6x2.9x
Wed, 13 Sep 2023US$711.0bUS$226.6bUS$6.8b23.2x104.5x3.1x
Fri, 11 Aug 2023US$668.8bUS$226.3bUS$6.7b23.1x100.2x3x
Sun, 09 Jul 2023US$667.8bUS$228.6bUS$6.1b24.2x109.6x2.9x
Tue, 06 Jun 2023US$673.3bUS$228.2bUS$5.9b22.1x113.7x2.9x
Thu, 04 May 2023US$590.7bUS$233.0bUS$3.9b22.4x151.5x2.5x
Sat, 01 Apr 2023US$606.6bUS$225.6bUS$2.3b22.3x258.8x2.7x
Mon, 27 Feb 2023US$1.9tUS$462.7bUS$22.4b26.5x86.8x4.2x
Wed, 25 Jan 2023US$2.0tUS$458.2bUS$39.1b28.4x51.6x4.4x
Fri, 23 Dec 2022US$1.9tUS$457.9bUS$39.2b27.6x47.4x4.1x
Price to Earnings Ratio

47.4x


Total Market Cap: US$1.9tTotal Earnings: US$39.2bTotal Revenue: US$457.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.8x202320242025
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 52.1x which is lower than its 3-year average PE of 68.8x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 3.9x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 19% per year over the last three years,
  • Revenues have also declined 15% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Industry Trends

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

US Market-0.69%
Tech-4.53%
IT-1.05%
Data Processing Services1.04%
IT Consulting0.64%
Internet Services and Infrastructure-2.94%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 31.2x.
    • Analysts are expecting annual earnings growth of 9.8%, which is lower than the prior year's growth of 12.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings growth rate of 24% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 9.8% 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$274.663.1%
+US$3.7b		-23.1%PE22x
CTSH Cognizant Technology SolutionsUS$84.053.8%
+US$1.5b		3.7%PE19.1x
IT GartnerUS$246.358.4%
+US$1.4b		-51.0%PE20x
TWLO TwilioUS$133.963.3%
+US$653.5m		22.0%PE302.2x
EPAM EPAM SystemsUS$212.144.2%
+US$469.6m		-12.8%PE31.5x

Latest News

CHOW
US$0.78
ChowChow Cloud International Holdings
7D
-93.0%
1Y
n/a
AKAM
US$86.53
Akamai Technologies
7D
1.4%
1Y
-11.1%

AKAM: Heavy AI And Security Spending Will Cap Near-Term Upside

Analysts have nudged their fair value estimate for Akamai Technologies to $66.00 per share, citing a slightly lower discount rate, stronger expected revenue growth in security and compute, improved profit margin assumptions, and a lower future P E multiple that reflects both ongoing investment needs and a more balanced view of valuation risk. Analyst Commentary Recent Street research paints a mixed picture for Akamai, with bullish views on the long term potential of its security and compute businesses offset by valuation concerns and execution risk around its transformation strategy.
TWLO
US$133.96
Twilio
7D
3.3%
1Y
22.0%

TWLO: Voice AI And RCS Momentum Will Drive Stronger Share Performance

Analysts modestly raised their Twilio fair value estimate to $175 from $170, citing improving post earnings sentiment, a supportive revenue outlook driven by growing voice AI and RCS infrastructure demand, and resilient profitability expectations despite a slightly higher discount rate. Analyst Commentary Bullish analysts highlighted that the latest earnings update reinforced confidence in Twilio's execution, prompting upward revisions to price targets and reaffirmation of positive ratings.
NET
US$196.70
Cloudflare
7D
-4.4%
1Y
71.6%

NET: Elevated Expectations Will Likely Amplify Downside Risk From Future Outages

The analyst price target for Cloudflare has been raised from approximately $116 to about $135 per share, as analysts point to accelerating revenue growth, strong Q3 execution, and Cloudflare's strengthening position across AI, security, and SASE as key drivers supporting a higher fair value, despite modestly higher risk assumptions. Analyst Commentary Street research following Cloudflare's latest quarterly report has skewed positive, with multiple firms lifting price targets on the back of accelerating revenue growth and stronger than expected execution.
ACN
US$274.66
Accenture
7D
3.1%
1Y
-23.1%

ACN: Gen AI Adoption And Margin Pressures Will Shape Future Performance

Analysts nudged our Accenture fair value estimate higher to about $281 from $277 as they balance lower sector multiples and lingering margin concerns against solid Q4 execution, resilient FY26 revenue expectations, and growing conviction that Accenture is investing appropriately to capture generative AI driven demand. Analyst Commentary Street research following Accenture's Q4 results and initial FY26 outlook reflects a mixed but generally constructive stance, with most firms lowering price targets to reflect sector multiple compression while maintaining positive or neutral ratings.
EPAM
US$212.14
EPAM Systems
7D
4.2%
1Y
-12.8%

EPAM: Low Recovery Visibility Will Likely Cap Upside Despite Margin Resilience

Analysts have trimmed their fair value estimate for EPAM Systems to $160 from $167 per share. This reflects higher perceived risk and slightly softer revenue growth expectations, partly offset by more resilient margins and a lower projected valuation multiple, as recent Street research highlights both limited visibility into recovery and potential upside to near term estimates.
IT
US$246.35
Gartner
7D
8.4%
1Y
-51.0%
GDDY
US$123.81
GoDaddy
7D
-2.7%
1Y
-40.8%

GDDY: Mixed Outlook Will Shape Balance Between AI Progress And Earnings Efficiency

Analysts have trimmed their price target on GoDaddy to approximately $134 from $150, citing slightly slower expected revenue growth and a modestly higher discount rate, while also highlighting resilient bookings, solid Q3 beats, and a stronger long term margin profile. Analyst Commentary Bearish analysts have recently cut their price targets on GoDaddy, pointing to a combination of mixed near term guidance and reduced confidence in the durability of elevated growth trends.
CTSH
US$84.05
Cognizant Technology Solutions
7D
3.8%
1Y
3.7%
DXC
US$15.42
DXC Technology
7D
7.4%
1Y
-28.2%
SNOW
US$215.28
Snowflake
7D
-3.3%
1Y
26.0%

SNOW: Enterprise AI Demand Will Drive Long-Term Earnings Power And Upside Potential

Analysts have nudged our Snowflake fair value estimate higher to approximately $282 from about $273 per share, citing a wave of Street price target hikes toward the $295 to $325 range and increased confidence that robust, AI driven demand can support stronger long term earnings power, despite only modest tweaks to growth and margin assumptions. Analyst Commentary Bullish analysts are broadly lifting targets into the $295 to $325 range, characterizing Snowflake as a key beneficiary of accelerating enterprise AI adoption and improving demand visibility into 2025 and beyond.
CRWV
US$72.35
CoreWeave
7D
-20.2%
1Y
n/a
WIX
US$97.75
Wix.com
7D
-7.5%
1Y
-55.4%

WIX: Elevated AI Spend Will Drive Long-Term Market Leadership Confidence

Analysts have trimmed their average price target on Wix.com by about $0.60 to roughly $167.15, citing near term margin pressure from elevated AI and Base44 related investments, even as they maintain confidence in the company’s long term growth and monetization potential. Analyst Commentary Street research following Wix.com's latest results reflects a more nuanced stance, with price targets reset lower but ratings largely remaining positive as investors recalibrate near term expectations around margins and free cash flow.
APLD
US$22.98
Applied Digital
7D
-28.4%
1Y
129.6%

APLD: Long-Term Hyperscale Power Control Will Drive Future Sector Leadership

Analysts have lifted their price targets on Applied Digital, in many cases doubling them to the mid to high $30s and low $40s per share, citing stronger than expected Q1 results, long term hyperscale contracts, a deep multi gigawatt development pipeline, and increasing confidence that the company can scale and monetize its AI focused data center footprint. Analyst Commentary Street research following the quarter has turned markedly more constructive on Applied Digital, with a wave of target price increases reflecting rising confidence in the company’s ability to convert its development pipeline and power portfolio into durable, high margin AI data center revenues.
IBM
US$308.66
International Business Machines
7D
-0.2%
1Y
34.6%
DOX
US$78.77
Amdocs
7D
2.1%
1Y
-9.4%