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U.S. IT Industry Analysis

UpdatedOct 18, 2025
DataAggregated Company Financials
Companies124
  • 7D1.0%
  • 3M0.4%
  • 1Y14.0%
  • YTD14.6%

The IT industry is up 1.0% in the last week, with Shopify up 4.5%. This takes the industry's 12 month performance to a gain of 14%. Looking forward, earnings are forecast to grow by 21% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 18 Oct 2025US$1.1tUS$282.7bUS$20.0b31.7x53.4x3.8x
Mon, 15 Sep 2025US$988.2bUS$250.9bUS$19.3b29x51.2x3.9x
Wed, 13 Aug 2025US$950.4bUS$249.4bUS$19.3b31x49.4x3.8x
Fri, 11 Jul 2025US$1.0tUS$241.7bUS$17.3b29.1x58.4x4.2x
Sun, 08 Jun 2025US$989.0bUS$240.4bUS$17.1b29.7x57.9x4.1x
Tue, 06 May 2025US$858.1bUS$238.4bUS$17.0b36.3x50.4x3.6x
Thu, 03 Apr 2025US$883.0bUS$242.3bUS$18.5b34.9x47.8x3.6x
Sat, 01 Mar 2025US$946.7bUS$239.9bUS$18.0b39.2x52.5x3.9x
Mon, 27 Jan 2025US$898.3bUS$234.1bUS$16.3b43.5x55.1x3.8x
Wed, 25 Dec 2024US$879.0bUS$234.7bUS$16.7b41.2x52.6x3.7x
Fri, 22 Nov 2024US$839.5bUS$233.0bUS$16.3b41.7x51.5x3.6x
Sun, 20 Oct 2024US$831.5bUS$232.8bUS$17.8b45.5x46.8x3.6x
Tue, 17 Sep 2024US$773.2bUS$233.3bUS$17.5b35.5x44.1x3.3x
Thu, 15 Aug 2024US$727.6bUS$232.7bUS$17.5b31.2x41.5x3.1x
Sat, 13 Jul 2024US$715.2bUS$236.9bUS$17.2b28x41.6x3x
Mon, 10 Jun 2024US$679.8bUS$237.2bUS$17.3b26.8x39.4x2.9x
Wed, 08 May 2024US$743.8bUS$236.9bUS$16.0b27.1x46.5x3.1x
Fri, 05 Apr 2024US$764.6bUS$227.8bUS$13.8b25.8x55.3x3.4x
Sun, 03 Mar 2024US$821.4bUS$227.7bUS$14.3b22.9x57.4x3.6x
Tue, 30 Jan 2024US$832.6bUS$230.1bUS$13.4b22.7x62.3x3.6x
Thu, 28 Dec 2023US$798.2bUS$229.5bUS$12.8b20.8x62.3x3.5x
Sat, 25 Nov 2023US$737.5bUS$228.5bUS$12.7b20.6x58.1x3.2x
Mon, 23 Oct 2023US$637.1bUS$227.2bUS$6.5b18.8x98.5x2.8x
Wed, 20 Sep 2023US$684.9bUS$226.6bUS$6.8b25.1x101x3x
Fri, 18 Aug 2023US$658.0bUS$226.0bUS$6.5b21.6x100.6x2.9x
Sun, 16 Jul 2023US$696.9bUS$228.7bUS$6.1b25.3x114.5x3x
Tue, 13 Jun 2023US$680.9bUS$228.2bUS$5.9b23.8x115.1x3x
Thu, 11 May 2023US$614.6bUS$229.7bUS$6.5b22.4x94.4x2.7x
Sat, 08 Apr 2023US$589.8bUS$225.6bUS$2.4b22.3x246.5x2.6x
Mon, 06 Mar 2023US$2.0tUS$463.8bUS$22.5b26.6x88.3x4.3x
Wed, 01 Feb 2023US$2.0tUS$460.1bUS$40.0b27.8x50.9x4.4x
Fri, 30 Dec 2022US$1.9tUS$457.8bUS$39.2b28.4x48.2x4.1x
Sun, 27 Nov 2022US$2.0tUS$456.3bUS$39.0b28.6x50x4.3x
Tue, 25 Oct 2022US$1.8tUS$450.4bUS$37.4b27.8x49.1x4.1x
Price to Earnings Ratio

49.1x


Total Market Cap: US$1.8tTotal Earnings: US$37.4bTotal Revenue: US$450.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.7x202320242025
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 53.4x which is lower than its 3-year average PE of 68.7x.
  • 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 declined 19% per year over the last three years,
  • Revenues have also declined 14% 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 Market1.71%
Tech2.01%
IT1.02%
IT Consulting1.04%
Internet Services and Infrastructure1.00%
Data Processing Services-1.53%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 30.2%, which is lower than the prior year's growth of 54.4% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading close to its 3-year average of 29.1x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 30% over the next 5 years.
  • However this is lower than its past earnings growth rate of 54% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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$157.764.5%
+US$8.8b		90.8%PE87.4x
IBM International Business MachinesUS$281.281.2%
+US$3.2b		21.1%PE44.7x
DOCN DigitalOcean HoldingsUS$41.4111.0%
+US$375.1m		-4.4%PE29.8x
VRSN VeriSignUS$264.791.5%
+US$370.8m		41.1%PE30.9x
MDB MongoDBUS$318.531.3%
+US$332.7m		15.6%PS11.7x

Latest News

VRSN
US$264.79
VeriSign
7D
1.5%
1Y
41.1%
SHOP
US$157.76
Shopify
7D
4.5%
1Y
90.8%
CTSH
US$66.08
Cognizant Technology Solutions
7D
0.4%
1Y
-15.3%
CRWV
US$136.87
CoreWeave
7D
-1.1%
1Y
n/a
EPAM
US$144.52
EPAM Systems
7D
1.5%
1Y
-28.3%

Enterprise AI Adoption Will Transform Cloud Migration And Data Engineering

Analysts have slightly lowered their price target for EPAM Systems from $211.13 to $206.80. They cited improving growth trends and organizational progress, which are viewed as underappreciated given the company's valuation and risk profile.
DOCN
US$41.41
DigitalOcean Holdings
7D
11.0%
1Y
-4.4%
IBM
US$281.28
International Business Machines
7D
1.2%
1Y
21.1%
NET
US$210.01
Cloudflare
7D
-1.8%
1Y
131.3%
GDDY
US$128.74
GoDaddy
7D
-1.5%
1Y
-21.8%
SNOW
US$240.74
Snowflake
7D
-0.6%
1Y
101.4%
ACN
US$238.39
Accenture
7D
-1.1%
1Y
-36.7%

Gen AI And Industry X Investments Will Drive Digital Transformation

Accenture's analyst price target has been revised downward from approximately $305 to $278 per share. This change reflects recent reductions in projected revenue growth rates and industry-wide valuation multiples, as analysts cite persistent margin pressures and a mixed demand outlook despite ongoing investments in generative AI.
OKTA
US$87.43
Okta
7D
-2.1%
1Y
16.9%
MDB
US$318.53
MongoDB
7D
1.3%
1Y
15.6%

Atlas Adoption Will Drive Enterprise Cloud Transformation

MongoDB's analyst price target has increased significantly from approximately $317 to nearly $351. Analysts cite improved growth visibility, stronger profit margins, and expanding opportunities in AI-driven applications as key drivers behind the upward revision.
IT
US$235.73
Gartner
7D
-1.6%
1Y
-55.6%

Gartner (NYSE:IT) Has A Pretty Healthy Balance Sheet

Oct 03
Gartner (NYSE:IT) Has A Pretty Healthy Balance Sheet
WIX
US$130.82
Wix.com
7D
-2.5%
1Y
-24.6%
DOX
US$82.94
Amdocs
7D
2.7%
1Y
-8.8%