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U.S. IT Industry Analysis

UpdatedMar 06, 2026
DataAggregated Company Financials
Companies124
  • 7D2.4%
  • 3M-16.1%
  • 1Y-4.7%
  • YTD-13.0%

In the last week, the IT industry is up 2.4%, with International Business Machines leading the way, up 6.0%. Meanwhile, CoreWeave actually underperformed within the industry, shrinking 23% in the last week. However, the industry is down 4.7% over the past year. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 06 Mar 2026US$868.4bUS$258.0bUS$21.5b21.5x40.4x3.4x
Sun, 01 Feb 2026US$998.8bUS$254.8bUS$22.5b27.6x44.3x3.9x
Tue, 30 Dec 2025US$1.1tUS$283.1bUS$20.9b30.3x52.3x3.9x
Thu, 27 Nov 2025US$1.1tUS$281.4bUS$20.9b27.8x50.6x3.8x
Sat, 25 Oct 2025US$1.1tUS$283.6bUS$22.0b30.7x49.9x3.9x
Mon, 22 Sep 2025US$1.0tUS$251.0bUS$19.3b32.2x53.2x4.1x
Wed, 20 Aug 2025US$945.5bUS$250.3bUS$19.3b29.7x49.1x3.8x
Fri, 18 Jul 2025US$990.3bUS$241.7bUS$17.4b31.1x57.1x4.1x
Sun, 15 Jun 2025US$977.0bUS$240.5bUS$17.1b28.6x57.2x4.1x
Tue, 13 May 2025US$862.7bUS$239.1bUS$16.7b34.4x51.7x3.6x
Thu, 10 Apr 2025US$764.8bUS$242.3bUS$18.5b33.5x41.4x3.2x
Sat, 08 Mar 2025US$909.4bUS$240.1bUS$18.2b43.7x50.1x3.8x
Mon, 03 Feb 2025US$966.3bUS$234.3bUS$16.0b44.1x60.6x4.1x
Wed, 01 Jan 2025US$858.7bUS$234.1bUS$16.5b46.7x52.2x3.7x
Fri, 29 Nov 2024US$889.5bUS$233.1bUS$16.3b49x54.7x3.8x
Sun, 27 Oct 2024US$792.0bUS$232.9bUS$15.7b43.6x50.3x3.4x
Tue, 24 Sep 2024US$775.4bUS$233.3bUS$17.5b40.3x44.3x3.3x
Thu, 22 Aug 2024US$752.1bUS$232.8bUS$17.5b33.9x42.9x3.2x
Sat, 20 Jul 2024US$741.3bUS$236.9bUS$17.2b28.9x43.2x3.1x
Mon, 17 Jun 2024US$684.8bUS$237.2bUS$17.3b27.4x39.7x2.9x
Wed, 15 May 2024US$713.8bUS$236.9bUS$16.7b23.9x42.7x3x
Fri, 12 Apr 2024US$748.4bUS$227.7bUS$13.8b24.8x54.1x3.3x
Sun, 10 Mar 2024US$812.2bUS$227.8bUS$14.3b23.9x56.6x3.6x
Tue, 06 Feb 2024US$822.7bUS$227.1bUS$12.9b20x63.6x3.6x
Thu, 04 Jan 2024US$756.6bUS$229.5bUS$12.8b20.2x59.1x3.3x
Sat, 02 Dec 2023US$750.1bUS$228.8bUS$12.8b21.2x58.6x3.3x
Mon, 30 Oct 2023US$620.2bUS$227.8bUS$11.4b17.6x54.4x2.7x
Wed, 27 Sep 2023US$657.9bUS$226.6bUS$6.8b24.6x97x2.9x
Fri, 25 Aug 2023US$665.8bUS$226.3bUS$6.6b20.8x100.6x2.9x
Sun, 23 Jul 2023US$693.0bUS$228.6bUS$6.2b25.5x111.7x3x
Tue, 20 Jun 2023US$694.9bUS$228.3bUS$5.9b24.4x117.5x3x
Thu, 18 May 2023US$630.7bUS$229.7bUS$6.4b23.7x97.8x2.7x
Sat, 15 Apr 2023US$588.9bUS$225.6bUS$2.5b23.6x239.4x2.6x
Mon, 13 Mar 2023US$1.9tUS$463.9bUS$22.4b25.1x84x4x
Price to Earnings Ratio

84x


Total Market Cap: US$1.9tTotal Earnings: US$22.4bTotal Revenue: US$463.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 67.9x202420252026
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 40.4x which is lower than its 3-year average PE of 67.9x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the IT industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 18% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

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

US Market-1.24%
Tech0.14%
IT2.40%
IT Consulting4.66%
Data Processing Services2.79%
Internet Services and Infrastructure0.17%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.5x.
    • Analysts are expecting annual earnings growth of 12.6%, which is lower than the prior year's growth of 26.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.3% 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
IBM International Business MachinesUS$256.556.0%
+US$13.6b		3.2%PE22.8x
SHOP ShopifyUS$134.797.0%
+US$11.5b		31.5%PE142.8x
NET CloudflareUS$192.3110.1%
+US$6.2b		46.8%PS31.2x
ACN AccentureUS$214.003.2%
+US$4.1b		-37.4%PE17.3x
SNOW SnowflakeUS$177.452.5%
+US$1.5b		13.6%PS13x

Latest News

CRWV
US$74.82
CoreWeave
7D
-23.4%
1Y
n/a
WIX
US$92.94
Wix.com
7D
30.3%
1Y
-50.3%
NET
US$192.31
Cloudflare
7D
10.1%
1Y
46.8%

NET: AI Infrastructure And JD Cloud Partnership Will Drive Future Upside

Analysts have trimmed their average Cloudflare price target slightly by about $1 to reflect a higher discount rate and sharply lower modeled profit margins, while still highlighting continued revenue strength and questioning recent security sector selling linked to Claude Code Security news. Analyst Commentary Recent research on Cloudflare reflects a split tape, with several banks trimming price targets on valuation and margin assumptions at the same time others are upgrading ratings or lifting targets on product momentum and AI exposure.
VNET
US$9.80
VNET Group
7D
-14.0%
1Y
-18.8%
MDB
US$263.93
MongoDB
7D
-21.6%
1Y
36.8%

MDB: Fair Outlook Sees AI Data Opportunity Tempered By Atlas And Leadership Uncertainty

Narrative Update Our updated analyst price target for MongoDB moves from $340.43 to $250.00, reflecting analysts' lower long term revenue growth assumptions, a slightly higher discount rate and a more conservative future P/E multiple, even as they highlight ongoing AI related opportunities and the recent post earnings selloff as a reset in expectations rather than a change in the core story. Analyst Commentary A wave of post earnings research on MongoDB has centered on resetting expectations after mixed guidance and a sharp pullback in the share price.
APLD
US$28.09
Applied Digital
7D
-2.0%
1Y
301.3%

APLD: Hyperscale Power Leases And New AI Campuses Will Drive Future Upside

Analysts are keeping their $36 price target on Applied Digital steady, citing recent hyperscaler leases, expanded AI infrastructure contracts, and continued buy ratings across the Street as reasons to maintain their existing valuation framework, even as they update assumptions for discount rate, growth, margins, and future P/E. Analyst Commentary Street research on Applied Digital has generally highlighted strong interest in its AI focused infrastructure model, supported by long term colocation leases and a growing pipeline of potential hyperscaler agreements.
IBM
US$256.55
International Business Machines
7D
6.0%
1Y
3.2%

IBM: Mainframe And Consulting Execution Will Shape AI Upside And Downside

The analyst price target for International Business Machines has been reduced by about $9 to reflect a slightly higher discount rate and only modest adjustments to long term growth and margin assumptions, as analysts balance recent upgrades and target increases with concerns about slower mainframe and consulting momentum. Analyst Commentary Recent research on International Business Machines reflects a mixed backdrop, with some firms turning more constructive after earlier target hikes and a sharp 2026 share price pullback, and others flagging execution and growth risks around key businesses such as mainframe infrastructure and consulting.
SNOW
US$177.45
Snowflake
7D
2.5%
1Y
13.6%
ACN
US$214.00
Accenture
7D
3.2%
1Y
-37.4%
GDS
US$38.11
GDS Holdings
7D
-8.8%
1Y
-1.0%
SHOP
US$134.79
Shopify
7D
7.0%
1Y
31.5%

SHOP: Rich Multiple And Agentic Commerce Promise Will Shape Near-Term Trading

The analyst price target for Shopify in our model edges up from $110.00 to about $111.12 as analysts weigh a mix of recent target cuts and upgrades, with many still highlighting growth in agentic commerce, AI supported monetization, and the stock's pullback as key parts of their thesis. Analyst Commentary Recent research on Shopify reflects a split view, with some firms upgrading on the stock's pullback and AI and agentic commerce potential, while others are trimming targets or stepping to the sidelines after a strong run.
VRSN
US$238.70
VeriSign
7D
6.0%
1Y
-0.5%

VeriSign's Future Still Hinges on Single-Service Dependency

A new series of interviews with current and former employees, conducted in January and February 2026, confirm our risk analysis. Management practices continue to be not in line with best-in-class approaches.
SHAZ
US$19.01
SharonAI Holdings
7D
-30.9%
1Y
n/a
KC
US$11.75
Kingsoft Cloud Holdings
7D
-6.7%
1Y
-33.2%

KC: Higher Margin Outlook And Lower Discount Rate Will Support Shares

Analysts have raised their price target for Kingsoft Cloud Holdings from about $14.21 to roughly $15.60, citing updated assumptions for revenue growth, profit margins, a slightly lower discount rate, and a modest adjustment to the expected future P/E multiple. Valuation Changes Fair Value: updated from $14.21 to $15.60, representing a modest upward adjustment to the modelled intrinsic value per share.
IT
US$170.98
Gartner
7D
9.7%
1Y
-64.6%

IT: Fair Outlook Will Balance Expanded Buybacks With Reset Earnings Assumptions

Analysts have maintained their $150 price target for Gartner, citing a slightly higher discount rate, a modestly adjusted revenue growth outlook, a small uplift in profit margin, and a lower assumed future P/E multiple as the key factors in their updated assessment. What's in the News From October 1, 2025 to December 31, 2025, Gartner repurchased 2,233,218 shares, representing 3.06% of its shares, for $599.11 million under its existing buyback program.
DOX
US$68.47
Amdocs
7D
-2.0%
1Y
-22.6%

DOX: Reset Guidance And Shareholder Returns Will Support Future Earnings Rebound

Analysts have reduced their price targets for Amdocs by $19 and $9, citing updated views on fair value, discount rate, revenue growth, profit margin and future P/E as the main reasons for the adjustment. Analyst Commentary Recent target cuts suggest analysts are reassessing how they value Amdocs, focusing on what they see as more conservative assumptions for fair value, discount rates, revenue growth, profit margins and future P/E levels.