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U.S. IT Industry Analysis

UpdatedJun 01, 2026
DataAggregated Company Financials
Companies116
  • 7D13.4%
  • 3M17.8%
  • 1Y4.9%
  • YTD-2.8%

In the last week, the IT industry is up 13%, with International Business Machines up 17%. Meanwhile, VeriSign actually underperformed within the industry, shrinking 7.9% in the last week. This means that the industry has gained 4.9% over the past year. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 01 Jun 2026US$988.6bUS$259.4bUS$20.1b20.6x49.1x3.8x
Wed, 29 Apr 2026US$835.9bUS$261.1bUS$21.7b20.4x38.5x3.2x
Fri, 27 Mar 2026US$849.8bUS$259.6bUS$21.6b19.4x39.4x3.3x
Sun, 22 Feb 2026US$882.9bUS$256.7bUS$21.7b21.5x40.8x3.4x
Tue, 20 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.5x4.2x
Thu, 18 Dec 2025US$1.1tUS$282.0bUS$21.0b29.9x51.5x3.8x
Sat, 15 Nov 2025US$1.1tUS$280.7bUS$20.5b30.7x51.3x3.7x
Mon, 13 Oct 2025US$1.1tUS$282.5bUS$20.0b30.7x53.2x3.8x
Wed, 10 Sep 2025US$998.7bUS$250.9bUS$19.3b29x51.7x4x
Fri, 08 Aug 2025US$977.0bUS$244.2bUS$18.6b27.7x52.4x4x
Sun, 06 Jul 2025US$1.0tUS$241.7bUS$17.4b29.5x59.3x4.3x
Tue, 03 Jun 2025US$947.6bUS$240.3bUS$17.0b28.9x55.6x3.9x
Thu, 01 May 2025US$859.9bUS$242.4bUS$18.0b29.9x47.8x3.5x
Sat, 29 Mar 2025US$885.6bUS$242.8bUS$18.3b35.6x48.4x3.6x
Mon, 24 Feb 2025US$976.6bUS$239.7bUS$18.2b40.2x53.8x4.1x
Wed, 22 Jan 2025US$872.6bUS$234.1bUS$16.3b42.9x53.5x3.7x
Fri, 20 Dec 2024US$860.6bUS$233.2bUS$16.4b43.6x52.5x3.7x
Sun, 17 Nov 2024US$827.3bUS$232.8bUS$16.3b45.6x50.6x3.6x
Tue, 15 Oct 2024US$823.0bUS$232.9bUS$17.8b43.4x46.3x3.5x
Thu, 12 Sep 2024US$765.8bUS$233.2bUS$17.5b35.6x43.6x3.3x
Sat, 10 Aug 2024US$717.7bUS$232.7bUS$17.5b28.5x41x3.1x
Mon, 08 Jul 2024US$718.8bUS$236.9bUS$17.2b26.9x41.8x3x
Wed, 05 Jun 2024US$669.8bUS$237.1bUS$17.3b27.3x38.8x2.8x
Fri, 03 May 2024US$703.6bUS$232.4bUS$14.5b23.9x48.6x3x
Sun, 31 Mar 2024US$783.3bUS$227.8bUS$13.8b24.5x56.6x3.4x
Tue, 27 Feb 2024US$828.5bUS$227.5bUS$14.2b22.8x58.3x3.6x
Thu, 25 Jan 2024US$824.1bUS$229.4bUS$12.9b22.8x63.7x3.6x
Sat, 23 Dec 2023US$791.8bUS$229.5bUS$12.8b20.8x61.8x3.4x
Mon, 20 Nov 2023US$722.2bUS$228.5bUS$12.7b20.9x56.9x3.2x
Wed, 18 Oct 2023US$665.1bUS$227.2bUS$6.5b20.5x102.8x2.9x
Fri, 15 Sep 2023US$693.9bUS$226.6bUS$6.8b23x102.2x3.1x
Sun, 13 Aug 2023US$665.1bUS$226.3bUS$6.7b22.8x99.6x2.9x
Tue, 11 Jul 2023US$674.6bUS$228.6bUS$6.1b25.1x110.7x3x
Thu, 08 Jun 2023US$675.2bUS$228.2bUS$5.9b24.2x114x3x
Price to Earnings Ratio

114x


Total Market Cap: US$675.2bTotal Earnings: US$5.9bTotal Revenue: US$228.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 57.8x202420252026
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 49.1x which is lower than its 3-year average PE of 57.8x.
  • 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 Market1.58%
Tech4.73%
IT13.37%
Internet Services and Infrastructure14.45%
IT Consulting12.08%
Data Processing Services-1.21%
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 13.7%, 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 26% 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 7.8% 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
IBM International Business MachinesUS$297.8017.3%
+US$41.3b		12.8%PE26.1x
SNOW SnowflakeUS$255.5548.4%
+US$29.1b		21.6%PS17.6x
SHOP ShopifyUS$118.7115.3%
+US$20.4b		11.4%PE115.9x
NET CloudflareUS$241.8211.9%
+US$9.1b		42.5%PS36.7x
OKTA OktaUS$123.2733.6%
+US$5.3b		17.7%PE86.7x

Latest News

CTSH
US$55.76
Cognizant Technology Solutions
7D
5.7%
1Y
-30.5%
KC
US$12.28
Kingsoft Cloud Holdings
7D
-13.6%
1Y
9.2%
OKTA
US$123.27
Okta
7D
33.6%
1Y
17.7%
NET
US$241.82
Cloudflare
7D
11.9%
1Y
42.5%
CRWV
US$109.53
CoreWeave
7D
3.8%
1Y
-1.6%
ACN
US$187.07
Accenture
7D
4.4%
1Y
-40.5%
SNOW
US$255.55
Snowflake
7D
48.4%
1Y
21.6%
DOCN
US$155.95
DigitalOcean Holdings
7D
-1.6%
1Y
449.5%
IBM
US$297.80
International Business Machines
7D
17.3%
1Y
12.8%
Narrative Update • May 28

This news is strategically bullish but financially asymmetric

Below is a structured investment-style analysis (in English) of how this news could affect IBM’s future earnings and valuation , incorporating both the quantum foundry (Anderon) and the Abertis consulting deal. IBM: Impact Analysis on Earnings & Valuation 1.
KD
US$12.47
Kyndryl Holdings
7D
1.5%
1Y
-68.2%
Narrative Update • May 27

KD: AI Risk Prevention Capabilities Will Outweigh Legal Headwinds

Analysts have reduced their Kyndryl Holdings price target to $14.10 from $14.70 as they adjust assumptions for revenue growth, profit margins, and future P/E levels while keeping the discount rate unchanged. What's in the News Kyndryl expanded its long running modernization work with the Arizona Department of Transportation Motor Vehicle Division, adding more mobile and remote services, digitizing mail based operations and B2B services, and extending the TeleMVD program to improve access in underserved communities.
SHOP
US$118.71
Shopify
7D
15.3%
1Y
10.7%
DOX
US$62.97
Amdocs
7D
0.5%
1Y
-31.3%
AIAI
US$12.83
AIAI Holdings
7D
-18.2%
1Y
n/a
GDDY
US$85.83
GoDaddy
7D
-5.1%
1Y
-52.9%
VRSN
US$285.38
VeriSign
7D
-7.9%
1Y
3.6%
Narrative Update • May 13

VRSN: 2026 Earnings Guidance Will Test Elevated Market Expectations

The analyst fair value estimate for VeriSign has shifted from $250 to $265. This change is broadly aligned with recent price target increases from several firms as analysts factor in updated views on revenue growth, margins, discount rates, and future P/E assumptions.
MGRT
US$82.98
Mega Fortune
7D
-3.5%
1Y
n/a