Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. IT Industry Analysis

UpdatedDec 29, 2025
DataAggregated Company Financials
Companies124
  • 7D-0.3%
  • 3M4.8%
  • 1Y19.5%
  • YTD21.0%

Over the last 7 days, the IT industry has remained flat, although notably CoreWeave declined by 9.9%. As for the the longer term, the industry is up 19% over the past 12 months. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 29 Dec 2025US$1.1tUS$283.0bUS$20.9b29.4x52.6x3.9x
Wed, 26 Nov 2025US$1.0tUS$281.3bUS$20.9b27.9x50.1x3.7x
Fri, 24 Oct 2025US$1.1tUS$283.7bUS$22.1b30.1x49.2x3.8x
Sun, 21 Sep 2025US$1.0tUS$251.0bUS$19.3b32.2x53.2x4.1x
Tue, 19 Aug 2025US$941.9bUS$250.3bUS$19.3b30x48.9x3.8x
Thu, 17 Jul 2025US$976.8bUS$241.7bUS$17.4b28.6x56.3x4x
Sat, 14 Jun 2025US$991.1bUS$240.5bUS$17.1b28.6x58x4.1x
Mon, 12 May 2025US$862.7bUS$239.1bUS$16.7b30.7x51.7x3.6x
Wed, 09 Apr 2025US$778.7bUS$242.3bUS$18.5b30.3x42.2x3.2x
Fri, 07 Mar 2025US$942.6bUS$240.1bUS$18.2b40.9x51.9x3.9x
Sun, 02 Feb 2025US$966.3bUS$234.3bUS$16.0b44.1x60.6x4.1x
Tue, 31 Dec 2024US$869.4bUS$234.1bUS$16.5b45.2x52.8x3.7x
Thu, 28 Nov 2024US$893.4bUS$233.1bUS$16.3b48.7x54.9x3.8x
Sat, 26 Oct 2024US$798.7bUS$232.9bUS$15.7b43.6x50.8x3.4x
Mon, 23 Sep 2024US$775.4bUS$233.3bUS$17.5b40.3x44.3x3.3x
Wed, 21 Aug 2024US$752.3bUS$232.8bUS$17.5b35.3x42.9x3.2x
Fri, 19 Jul 2024US$747.7bUS$236.9bUS$17.2b29.4x43.5x3.2x
Sun, 16 Jun 2024US$684.8bUS$237.2bUS$17.3b27.4x39.7x2.9x
Tue, 14 May 2024US$713.7bUS$236.9bUS$16.7b24.3x42.7x3x
Thu, 11 Apr 2024US$767.2bUS$227.7bUS$13.8b25x55.5x3.4x
Sat, 09 Mar 2024US$812.2bUS$227.8bUS$14.3b23.9x56.6x3.6x
Mon, 05 Feb 2024US$843.7bUS$229.9bUS$13.5b22.4x62.7x3.7x
Wed, 03 Jan 2024US$773.4bUS$229.5bUS$12.8b20.6x60.4x3.4x
Fri, 01 Dec 2023US$746.7bUS$228.8bUS$12.8b20.7x58.3x3.3x
Sun, 29 Oct 2023US$620.2bUS$227.8bUS$11.4b17.6x54.4x2.7x
Tue, 26 Sep 2023US$672.1bUS$226.6bUS$6.8b24.8x99.1x3x
Thu, 24 Aug 2023US$674.7bUS$226.2bUS$6.6b20.8x102.2x3x
Sat, 22 Jul 2023US$693.0bUS$228.6bUS$6.2b25.5x111.7x3x
Mon, 19 Jun 2023US$694.9bUS$228.3bUS$5.9b24.4x117.5x3x
Wed, 17 May 2023US$621.0bUS$229.7bUS$6.4b23.5x96.3x2.7x
Fri, 14 Apr 2023US$592.9bUS$225.6bUS$2.5b24.1x240.9x2.6x
Sun, 12 Mar 2023US$1.9tUS$463.9bUS$22.4b25.1x84x4x
Tue, 07 Feb 2023US$2.1tUS$459.6bUS$40.0b28.1x51.3x4.5x
Thu, 05 Jan 2023US$1.9tUS$457.7bUS$39.2b27.7x49x4.2x
Price to Earnings Ratio

49x


Total Market Cap: US$1.9tTotal Earnings: US$39.2bTotal Revenue: US$457.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.9x20242025
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 52.6x which is lower than its 3-year average PE of 68.9x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 3.9x.
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 15% 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 Market0.61%
Tech1.13%
IT-0.28%
IT Consulting0.43%
Data Processing Services0.067%
Internet Services and Infrastructure-1.07%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 31.0x.
    • Analysts are expecting annual earnings growth of 9.7%, which is lower than the prior year's growth of 12.7% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% over the next 5 years.
  • This is better than its past earnings growth rate of 24% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 9.7% 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$305.090.8%
+US$2.1b		38.5%PE36x
SHOP ShopifyUS$170.830.7%
+US$1.5b		60.1%PE124.9x
ACN AccentureUS$271.090.2%
+US$258.4m		-23.1%PE21.9x
DOX AmdocsUS$81.732.0%
+US$176.0m		-4.2%PE15.6x
CTSH Cognizant Technology SolutionsUS$85.570.4%
+US$173.8m		11.5%PE19.4x

Latest News

OKTA
US$88.61
Okta
7D
-2.6%
1Y
11.3%
SNOW
US$223.88
Snowflake
7D
-1.3%
1Y
44.5%

SNOW: Rising AI Hype Will Likely Expose Fragile Premium Multiple

Our fair value estimate for Snowflake has increased by approximately $12 per share to about $198, as analysts point to higher Street price targets driven by robust AI fueled demand, stronger second half 2025 expectations, and growing conviction in the company’s long term revenue scale and earnings power. Analyst Commentary Recent Street research has turned incrementally more constructive on Snowflake, with multiple firms lifting price targets into the $295 to $325 range and reiterating positive ratings.
ACN
US$271.09
Accenture
7D
0.2%
1Y
-23.1%
BBAI
US$5.73
BigBear.ai Holdings
7D
-10.3%
1Y
19.1%

BBAI: Airport Platform Rollout And 2025 Revenue Outlook Will Drive Future Performance

Analysts have modestly raised their price target on BigBear.ai Holdings by approximately 0.2 percent to about 6.67 dollars. This change reflects marginal adjustments to discount-rate and long-term valuation assumptions rather than any major shift in the company’s fundamental outlook.
DOX
US$81.73
Amdocs
7D
2.0%
1Y
-4.2%
IT
US$252.61
Gartner
7D
0.9%
1Y
-48.0%

IT: Share Repurchases Will Drive Future Upside As Core Business Strengthens

Analysts have made a slight downward revision to their price target for Gartner, trimming fair value by about $0.55 per share. This reflects modestly higher discount rate assumptions and marginally lower long term valuation multiples, while growth and margin expectations remain essentially unchanged.
APLD
US$24.05
Applied Digital
7D
-13.4%
1Y
201.8%

APLD: Long-Term Hyperscale Power Access Will Drive Future AI Leasing Demand

Analysts have lifted their average price target on Applied Digital to about $40 from roughly $23, citing the validation of its hyperscale data center strategy through the $11B CoreWeave contract, stronger than expected Q1 results, and a growing multi-gigawatt AI infrastructure pipeline supported by robust financing. Analyst Commentary Bullish analysts emphasize that Applied Digital is emerging as a key beneficiary of the accelerating shift toward AI infrastructure, with recent sector transactions underscoring the strategic value of power access and scalable data center capacity.
AKAM
US$88.42
Akamai Technologies
7D
-1.9%
1Y
-7.5%
MDB
US$435.85
MongoDB
7D
-0.9%
1Y
86.3%

MongoDB, Inc.'s (NASDAQ:MDB) 26% Share Price Surge Not Quite Adding Up

Dec 19
MongoDB, Inc.'s (NASDAQ:MDB) 26% Share Price Surge Not Quite Adding Up
GDDY
US$127.07
GoDaddy
7D
0.8%
1Y
-36.3%
SHOP
US$170.83
Shopify
7D
0.7%
1Y
60.1%

SHOP: AI Partnerships And Margin Expansion Will Drive Measured Upside Into 2025

Analysts have nudged our Shopify price target higher to approximately $175, up modestly from about $170. This reflects slightly faster expected profit margin expansion and durable post Q3 growth momentum that they believe supports the stock's premium valuation.
IBM
US$305.09
International Business Machines
7D
0.8%
1Y
38.5%

IBM: Quantum Optionality And Software Execution Will Drive Returns Amid Workforce Shift

Analysts have nudged their fair value estimate for International Business Machines slightly higher, lifting the price target by about $3 to reflect steady core software execution, improving long term quantum revenue optionality, and modestly richer earnings multiples, despite only incremental changes to growth and margin assumptions. Analyst Commentary Recent Street research presents a mixed but generally constructive view on IBM, with several bullish analysts lifting price targets on the back of solid execution in software, consulting, and emerging quantum capabilities, while more cautious voices point to valuation and growth hurdles that still need to be cleared.
TWLO
US$140.46
Twilio
7D
-1.0%
1Y
29.3%

TWLO: Voice AI And RCS Momentum Will Drive Stronger Share Performance

Analysts modestly raised their Twilio fair value estimate to $175 from $170, citing improving post earnings sentiment, a supportive revenue outlook driven by growing voice AI and RCS infrastructure demand, and resilient profitability expectations despite a slightly higher discount rate. Analyst Commentary Bullish analysts highlighted that the latest earnings update reinforced confidence in Twilio's execution, prompting upward revisions to price targets and reaffirmation of positive ratings.
NET
US$202.39
Cloudflare
7D
0.2%
1Y
85.6%

NET: Elevated Expectations Will Likely Amplify Downside Risk From Future Outages

The analyst price target for Cloudflare has been raised from approximately $116 to about $135 per share, as analysts point to accelerating revenue growth, strong Q3 execution, and Cloudflare's strengthening position across AI, security, and SASE as key drivers supporting a higher fair value, despite modestly higher risk assumptions. Analyst Commentary Street research following Cloudflare's latest quarterly report has skewed positive, with multiple firms lifting price targets on the back of accelerating revenue growth and stronger than expected execution.
CTSH
US$85.57
Cognizant Technology Solutions
7D
0.4%
1Y
11.5%
CRWV
US$76.42
CoreWeave
7D
-9.9%
1Y
n/a