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U.S. IT Industry Analysis

UpdatedJun 15, 2026
DataAggregated Company Financials
Companies118
  • 7D-3.0%
  • 3M4.7%
  • 1Y-7.5%
  • YTD-9.7%

Over the last 7 days, the IT industry has dropped 3.0%, driven by pullbacks in International Business Machines and Cloudflare of 3.1% and 7.8%, respectively. Overall the industry is down 7.5% in 12 months. Looking forward, earnings are forecast to grow by 22% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 15 Jun 2026US$919.0bUS$259.6bUS$20.1b19.1x45.8x3.5x
Wed, 13 May 2026US$824.6bUS$258.4bUS$20.6b22.6x40.1x3.2x
Fri, 10 Apr 2026US$837.4bUS$259.7bUS$21.6b20.4x38.8x3.2x
Sun, 08 Mar 2026US$888.9bUS$258.0bUS$21.5b21.3x41.3x3.4x
Tue, 03 Feb 2026US$998.7bUS$254.8bUS$22.5b28x44.3x3.9x
Thu, 01 Jan 2026US$1.1tUS$283.0bUS$20.9b29.9x51.8x3.8x
Sat, 29 Nov 2025US$1.1tUS$281.5bUS$20.9b28.1x51x3.8x
Mon, 27 Oct 2025US$1.1tUS$283.6bUS$22.0b30.7x51.6x4x
Wed, 24 Sep 2025US$1.0tUS$251.0bUS$19.3b31.8x54.1x4.2x
Fri, 22 Aug 2025US$937.0bUS$250.4bUS$19.3b29.5x48.6x3.7x
Sun, 20 Jul 2025US$1.0tUS$241.7bUS$17.3b28x57.9x4.2x
Tue, 17 Jun 2025US$977.4bUS$240.5bUS$17.1b28.9x57.2x4.1x
Thu, 15 May 2025US$923.8bUS$239.2bUS$16.7b33.2x55.4x3.9x
Sat, 12 Apr 2025US$800.3bUS$242.3bUS$18.5b32.5x43.3x3.3x
Mon, 10 Mar 2025US$917.2bUS$239.9bUS$18.3b43.7x50.1x3.8x
Wed, 05 Feb 2025US$968.8bUS$234.1bUS$16.2b49.4x59.9x4.1x
Fri, 03 Jan 2025US$855.8bUS$234.1bUS$16.5b47.6x52x3.7x
Sun, 01 Dec 2024US$894.5bUS$233.1bUS$16.3b45.2x55x3.8x
Tue, 29 Oct 2024US$792.0bUS$232.9bUS$15.7b43.4x50.3x3.4x
Thu, 26 Sep 2024US$786.1bUS$233.3bUS$17.5b41.5x44.9x3.4x
Sat, 24 Aug 2024US$745.4bUS$233.1bUS$17.4b34.1x42.7x3.2x
Mon, 22 Jul 2024US$739.1bUS$236.9bUS$17.2b28.9x43.1x3.1x
Wed, 19 Jun 2024US$685.6bUS$237.2bUS$17.3b26.6x39.7x2.9x
Fri, 17 May 2024US$720.5bUS$236.9bUS$16.7b24.5x43.1x3x
Sun, 14 Apr 2024US$752.7bUS$227.8bUS$13.7b25x54.7x3.3x
Tue, 12 Mar 2024US$802.3bUS$227.8bUS$14.3b22.8x55.9x3.5x
Thu, 08 Feb 2024US$816.2bUS$226.7bUS$13.1b19.7x62.4x3.6x
Sat, 06 Jan 2024US$757.8bUS$229.5bUS$12.8b20x59x3.3x
Mon, 04 Dec 2023US$761.8bUS$228.9bUS$12.7b21.2x59.8x3.3x
Wed, 01 Nov 2023US$632.6bUS$227.8bUS$11.4b19.8x55.5x2.8x
Fri, 29 Sep 2023US$657.2bUS$227.2bUS$6.5b24x101.3x2.9x
Sun, 27 Aug 2023US$674.4bUS$226.3bUS$6.6b21.2x101.9x3x
Tue, 25 Jul 2023US$693.1bUS$228.6bUS$6.2b25.6x111.7x3x
Thu, 22 Jun 2023US$675.0bUS$228.2bUS$5.9b23.2x114.1x3x
Price to Earnings Ratio

114.1x


Total Market Cap: US$675.0bTotal Earnings: US$5.9bTotal Revenue: US$228.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 57x202420252026
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 45.8x which is lower than its 3-year average PE of 57.0x.
  • 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 50% per year over the last three years.
  • Revenues for these companies have grown 4.4% 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 Market0.50%
Tech-0.69%
IT-2.96%
Data Processing Services-1.28%
IT Consulting-2.69%
Internet Services and Infrastructure-3.17%
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 13.3%, 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 7.9% 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
APLD Applied DigitalUS$42.704.3%
+US$501.5m		269.7%PS38.2x
RXT Rackspace TechnologyUS$5.4420.6%
+US$231.8m		300.0%PS0.5x
AIAI AIAI HoldingsUS$14.7914.2%
+US$129.4m		n/aPE-266.7x
DOCN DigitalOcean HoldingsUS$170.440.7%
+US$116.9m		505.5%PE75.1x
BRUN Boost RunUS$30.924.4%
+US$79.2m		203.6%PS70.6x

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APLD
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AIAI Holdings
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14.2%
1Y
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