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U.S. IT Industry Analysis

UpdatedJul 15, 2026
DataAggregated Company Financials
Companies122
  • 7D-10.0%
  • 3M0.6%
  • 1Y-11.2%
  • YTD-14.3%

Over the last 7 days, the IT industry has dropped 10%, driven by International Business Machines declining 29%. Overall the industry is down 11% in 12 months. As for the next few years, earnings are expected to grow by 23% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 15 Jul 2026US$963.9bUS$260.7bUS$19.9b17.5x48.4x3.7x
Fri, 12 Jun 2026US$914.6bUS$259.6bUS$20.1b19.3x45.6x3.5x
Sun, 10 May 2026US$872.2bUS$258.3bUS$20.6b21.4x42.3x3.4x
Tue, 07 Apr 2026US$855.0bUS$259.6bUS$21.6b20.2x39.6x3.3x
Thu, 05 Mar 2026US$846.1bUS$257.9bUS$21.5b21x39.4x3.3x
Sat, 31 Jan 2026US$1.0tUS$254.8bUS$22.5b27.6x44.8x4x
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
Price to Earnings Ratio

111.7x


Total Market Cap: US$693.0bTotal Earnings: US$6.2bTotal Revenue: US$228.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 55.1x202420252026
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 48.4x which is lower than its 3-year average PE of 55.1x.
  • 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 48% 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 Market0.22%
Tech2.28%
IT-10.03%
Internet Services and Infrastructure2.51%
Data Processing Services-0.27%
IT Consulting-22.46%
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 13.6%, 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 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
SHOP ShopifyUS$125.683.1%
+US$4.9b		9.2%PE122.8x
SNOW SnowflakeUS$275.945.0%
+US$4.6b		29.7%PS19x
NET CloudflareUS$281.754.8%
+US$4.6b		50.7%PS42.8x
AKAM Akamai TechnologiesUS$126.1110.3%
+US$1.7b		64.2%PE42.1x
OKTA OktaUS$154.624.1%
+US$1.1b		69.7%PE108.8x

Latest News

NET
US$281.75
Cloudflare
7D
4.8%
1Y
50.7%
MDB
US$344.67
MongoDB
7D
-4.6%
1Y
65.2%
IBM
US$217.07
International Business Machines
7D
-29.1%
1Y
-23.2%
APLD
US$28.47
Applied Digital
7D
-7.3%
1Y
185.6%
AKAM
US$126.11
Akamai Technologies
7D
10.3%
1Y
64.2%
Seeking Alpha • Jul 14

Akamai: Heavy AI Spending, But The Demand Is Already Contracted

Summary Akamai Technologies is pivoting from declining content delivery to growth in cloud infrastructure and security, underpinned by a $1.8B, seven-year cloud contract. Cloud Infrastructure Services are expected to grow at least 50% in 2026, driving double-digit total revenue growth by 2027, despite heavy upfront capex. AKAM’s valuation at 18.8x 2026 non-GAAP earnings appears reasonable, with committed demand reducing risk versus speculative capacity investments. I rate AKAM a cautious Buy, citing improved revenue visibility, maturing cloud economics, and dual AI tailwinds in infrastructure and security. Read the full article on Seeking Alpha
RXT
US$4.65
Rackspace Technology
7D
-31.2%
1Y
222.9%
Seeking Alpha • Jul 11

Rackspace: Painfully Slow AI Cloud Shift

Summary Rackspace Technology is making a late, incremental shift into the enterprise AI cloud space, but progress is slow and not yet material. The recent AMD compute deal covers only 30 MW, with meaningful AI revenue impact unlikely before 2028 and current revenue forecasts cut for 2026. The data center infrastructure company faces a challenging transition from low-margin legacy business, with projected 2026 revenues down 7% and adjusted EBITDA margin stagnant at 12%. The stock isn't appealing with significant shareholder dilution (>20%) expected, limited near-term growth, and the lack of a compelling upside catalyst. Read the full article on Seeking Alpha
ACN
US$134.56
Accenture
7D
-5.3%
1Y
-51.3%
New Narrative • Jul 11

High-quality global services company facing an AI-driven valuation reset.

Stock market information for Accenture plc (ACN) Accenture plc is a equity in the USA market. The price is 139.06 USD currently with a change of 1.85 USD (0.01%) from the previous close.
CRWV
US$79.94
CoreWeave
7D
-4.3%
1Y
-43.1%
Seeking Alpha • Jul 11

CoreWeave: Bound To Stay An Industry Leader For A Reason

Summary CoreWeave is the leading neocloud operator, trading at a discounted 11.9x forward EV/EBITDA versus the sector median of 15x. CRWV's $99.4B backlog is 98% under five-year take-or-pay contracts with major hyperscalers, supporting robust forward revenue visibility. Backlog risk is real; however, thanks to heavy CapEx, CRWV provides quality and dominance for their clients. Realization of contracts is key. I estimate significant, 250%+ upside from current price levels until the end of 2027 based on margin expansion and backlog conversion, as well as improvement. Read the full article on Seeking Alpha
IT
US$132.97
Gartner
7D
-5.6%
1Y
-63.1%
FSLY
US$20.90
Fastly
7D
12.4%
1Y
206.0%
Narrative Update • Jul 09

FSLY: Execution Risks Around AI Commerce Partnership Will Likely Cap Further Upside

Analysts have raised their consolidated fair value estimate for Fastly to $18.00 from $7.00. They cite updated assumptions for the discount rate, revenue growth, profit margin, and a higher future P/E multiple, as reflected in recent mixed price target revisions and rating changes across the Street.
SHOP
US$125.68
Shopify
7D
3.1%
1Y
9.2%
SNOW
US$275.94
Snowflake
7D
5.0%
1Y
29.7%
OKTA
US$154.62
Okta
7D
4.1%
1Y
69.7%
TWLO
US$217.83
Twilio
7D
2.8%
1Y
72.7%
DOCN
US$126.30
DigitalOcean Holdings
7D
-7.8%
1Y
346.6%
Narrative Update • Jul 07

DOCN: AI Workloads And New Capacity Will Drive Post 2026 Margin Upside

DigitalOcean Holdings' analyst price target has effectively doubled to about $179 from roughly $95 as analysts factor in higher projected revenue growth and a richer future P/E multiple, supported by recent research pointing to continued demand for AI workloads and longer term margin expansion. Analyst Commentary Recent research on DigitalOcean Holdings points to a strongly constructive tone from several firms, with bullish analysts lifting price targets and highlighting what they see as a favorable setup around AI demand and margin potential.
CHRN
US$23.01
ChronoScale Holdings
7D
31.3%
1Y
614.6%