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U.S. IT Industry Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies122
  • 7D5.8%
  • 3M8.9%
  • 1Y-7.8%
  • YTD-8.0%

Over the last 7 days, the IT industry has risen 5.8%, driven by gains from International Business Machines of 8.9%. During this same period, the CoreWeave underperformed, falling 15%. In the past year, the industry is down 7.8%. Earnings are forecast to grow by 24% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Jul 2026US$912.3bUS$260.6bUS$20.2b17.3x45.1x3.5x
Sat, 30 May 2026US$930.9bUS$259.4bUS$20.1b20.6x46.2x3.6x
Mon, 27 Apr 2026US$843.3bUS$261.1bUS$21.7b20.6x38.8x3.2x
Wed, 25 Mar 2026US$869.9bUS$259.6bUS$21.6b18.9x40.4x3.4x
Fri, 20 Feb 2026US$903.9bUS$256.5bUS$21.7b20.7x41.6x3.5x
Sun, 18 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.5x4.2x
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
Price to Earnings Ratio

109.6x


Total Market Cap: US$667.8bTotal Earnings: US$6.1bTotal Revenue: US$228.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 55.9x202420252026
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 45.1x which is lower than its 3-year average PE of 55.9x.
  • 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 49% per year over the last three years.
  • Revenues for these companies have grown 4.5% 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 Market1.64%
Tech1.15%
IT5.77%
IT Consulting6.38%
Internet Services and Infrastructure5.33%
Data Processing Services-1.05%
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 13.4%, 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 35% 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 7.6% 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$286.258.9%
+US$21.9b		-0.5%PE25.1x
SNOW SnowflakeUS$261.1915.6%
+US$12.2b		20.2%PS18x
SHOP ShopifyUS$121.636.5%
+US$9.7b		6.0%PE118.8x
NET CloudflareUS$246.3110.2%
+US$8.1b		32.7%PS37.4x
MDB MongoDBUS$359.3818.8%
+US$4.6b		75.8%PS11.1x

Latest News

NET
US$246.31
Cloudflare
7D
10.2%
1Y
32.7%
CRWV
US$85.69
CoreWeave
7D
-15.1%
1Y
-43.5%
Seeking Alpha • 20h

CoreWeave Selloff Is Mispriced - Here's Why The Growth Story Is Intact

Summary CoreWeave is rated Buy, downgraded from Strong Buy, due to NBIS's superior risk/reward profile despite CRWV's industry leadership. CRWV's $100B backlog, expanding customer base, and robust AI software offerings underpin strong revenue growth and improving customer concentration risk. Significant debt ($35B) and ongoing unprofitability persist, but management has reduced the weighted average cost of debt and secured ample liquidity. Transitioning from bare metal to AI infrastructure providers, cross-selling software, and inference demand are expected to drive future margin expansion and profitability. Read the full article on Seeking Alpha
AKAM
US$112.81
Akamai Technologies
7D
-5.6%
1Y
42.0%
AIAI
US$14.53
AIAI Holdings
7D
-15.6%
1Y
n/a
CHRN
US$17.64
ChronoScale
7D
-20.3%
1Y
405.4%
SNOW
US$261.19
Snowflake
7D
15.6%
1Y
20.2%
TWLO
US$209.28
Twilio
7D
11.1%
1Y
79.6%
CTSH
US$41.07
Cognizant Technology Solutions
7D
-0.9%
1Y
-48.8%
MDB
US$359.38
MongoDB
7D
18.8%
1Y
75.8%
Seeking Alpha • Jul 01

MongoDB: This Is Where I Will Put My Money Instead

Summary MongoDB, Inc. delivered a strong Q1 FY27 with 25% YoY revenue growth and Atlas revenue accelerating to 29.4%, with growing AI product adoption. MDB benefits from AI-driven workloads, but AI is not yet a material topline contributor. However, cRPO growth and upmarket momentum remain robust, which is encouraging. Despite operational strength, MDB's forward revenue growth lags Snowflake and Datadog, and its stock trades at a lower multiple as a result. Given limited net upside versus downside risk and slowing growth projections, I rate MDB stock a Hold and prefer Datadog in the data layer. Read the full article on Seeking Alpha
SHOP
US$121.63
Shopify
7D
6.5%
1Y
6.0%
IBM
US$286.25
International Business Machines
7D
8.9%
1Y
-0.5%
Narrative Update • Jun 30

IBM: AI Infrastructure And Quantum Optionality Will Shape Balanced Future Returns

The updated analyst price target for International Business Machines has been refined lower to about $294 from roughly $302, as analysts factor in slightly slower modeled revenue growth, higher projected profit margins, and a reduced future P/E multiple informed by recent research on AI infrastructure demand, software acceleration, and quantum computing optionality. Analyst Commentary Street research on International Business Machines points to a split view, with several firms leaning more constructive on AI, software and quantum optionality, while others are focusing on execution risks and valuation reset after a strong run.
APLD
US$35.52
Applied Digital
7D
-15.4%
1Y
236.4%
Seeking Alpha • Jun 30

Explaining The Market Divide On Applied Digital -- Does Their Strategy Actually Work

Summary Applied Digital Corporation is reiterated as a buy, driven by multi-billion dollar, long-term AI infrastructure leases converting to visible cash flows from 2027. APLD has secured major financing, including a $350M revolving credit facility and $1.59B in senior secured notes, supporting aggressive data center buildouts. Recent 15-year, take-or-pay leases with investment-grade hyperscalers lock in $5.2B base revenue, de-risking utilization and underpinning a $36B contracted portfolio. Valuation is at a hefty premium (31x–42x EV/sales), justified by anticipated scale and margin expansion, but execution risks and high leverage remain material. Read the full article on Seeking Alpha
DOCN
US$144.58
DigitalOcean Holdings
7D
-2.7%
1Y
409.1%
Seeking Alpha • Jun 30

DigitalOcean: Great Disruptive Stock, But Now The Price Is Too High

Summary DigitalOcean has rapidly shifted to AI inference, driving 221% AI customer ARR growth and materially impacting financials. DOCN's valuation appears stretched at 60x forward FCF, leading me to rate the stock a hold despite strong business momentum. Management expects 30% revenue growth in 2026 and 50% in 2027, with FCF margins potentially rebounding to 20% as CapEx moderates. The recent $888M share issuance improved leverage, reducing debt to $0.76B and interest expense by $50M, supporting future investment. Read the full article on Seeking Alpha
ACN
US$131.13
Accenture
7D
1.5%
1Y
-56.6%
Analysis Article • Jun 30

Accenture's (NYSE:ACN) Earnings Offer More Than Meets The Eye

The market seemed underwhelmed by the solid earnings posted by Accenture plc ( NYSE:ACN ) recently. Along with the...
WYFI
US$34.94
WhiteFiber
7D
-9.7%
1Y
n/a
OKTA
US$140.46
Okta
7D
18.5%
1Y
43.1%