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

U.S. IT Industry Analysis

UpdatedApr 25, 2026
DataAggregated Company Financials
Companies113
  • 7D-5.3%
  • 3M-17.3%
  • 1Y2.0%
  • YTD-17.7%

Over the last 7 days, the IT industry has dropped 5.3%, driven by a pullback from International Business Machines of 8.5%. Over the last year, the industry has been flat overall. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 25 Apr 2026US$845.4bUS$261.1bUS$21.7b20.8x38.9x3.2x
Mon, 23 Mar 2026US$849.6bUS$259.6bUS$21.6b19.4x39.4x3.3x
Wed, 18 Feb 2026US$900.8bUS$256.5bUS$21.7b22.5x41.5x3.5x
Fri, 16 Jan 2026US$1.1tUS$252.7bUS$19.8b29.8x53.8x4.2x
Sun, 14 Dec 2025US$1.1tUS$282.0bUS$21.0b29.9x52.1x3.9x
Tue, 11 Nov 2025US$1.1tUS$280.2bUS$20.2b31.3x54.3x3.9x
Thu, 09 Oct 2025US$1.1tUS$251.9bUS$19.1b32.9x56.2x4.3x
Sat, 06 Sep 2025US$974.0bUS$250.9bUS$19.3b29.3x50.4x3.9x
Mon, 04 Aug 2025US$920.8bUS$243.5bUS$17.8b26.5x51.6x3.8x
Wed, 02 Jul 2025US$1.0tUS$241.7bUS$17.4b29.2x58.5x4.2x
Fri, 30 May 2025US$949.8bUS$240.3bUS$17.0b28.9x55.8x4x
Sun, 27 Apr 2025US$841.7bUS$242.4bUS$18.0b31.6x46.9x3.5x
Tue, 25 Mar 2025US$868.0bUS$240.8bUS$19.2b47.2x45.1x3.6x
Thu, 20 Feb 2025US$1.0tUS$239.4bUS$18.2b43.7x57x4.3x
Sat, 18 Jan 2025US$867.0bUS$234.1bUS$16.3b42.1x53.1x3.7x
Mon, 16 Dec 2024US$894.9bUS$233.2bUS$16.4b45.5x54.6x3.8x
Wed, 13 Nov 2024US$826.3bUS$233.2bUS$16.1b46.5x51.2x3.5x
Fri, 11 Oct 2024US$821.5bUS$232.9bUS$17.8b44.4x46.2x3.5x
Sun, 08 Sep 2024US$739.3bUS$233.3bUS$17.5b35.4x42.1x3.2x
Tue, 06 Aug 2024US$703.2bUS$232.5bUS$16.1b28.2x43.6x3x
Thu, 04 Jul 2024US$720.0bUS$237.0bUS$17.2b29x41.9x3x
Sat, 01 Jun 2024US$677.6bUS$237.1bUS$17.3b28.3x39.1x2.9x
Mon, 29 Apr 2024US$712.8bUS$228.0bUS$14.4b25.1x49.6x3.1x
Wed, 27 Mar 2024US$771.0bUS$227.8bUS$14.2b23x54.5x3.4x
Fri, 23 Feb 2024US$798.4bUS$227.5bUS$14.2b23x56.2x3.5x
Sun, 21 Jan 2024US$800.1bUS$229.4bUS$12.9b21.4x61.8x3.5x
Tue, 19 Dec 2023US$786.3bUS$229.0bUS$12.8b20.2x61.4x3.4x
Thu, 16 Nov 2023US$708.9bUS$228.4bUS$12.6b21.2x56.1x3.1x
Sat, 14 Oct 2023US$650.9bUS$227.2bUS$6.5b20.7x100.6x2.9x
Mon, 11 Sep 2023US$704.4bUS$226.6bUS$6.8b23.2x103.5x3.1x
Wed, 09 Aug 2023US$673.7bUS$226.2bUS$6.6b23x102.8x3x
Fri, 07 Jul 2023US$669.9bUS$228.6bUS$6.1b23.5x110x2.9x
Sun, 04 Jun 2023US$673.6bUS$228.3bUS$5.9b23.9x113.8x3x
Tue, 02 May 2023US$576.7bUS$225.3bUS$3.2b20.9x180.7x2.6x
Price to Earnings Ratio

180.7x


Total Market Cap: US$576.7bTotal Earnings: US$3.2bTotal Revenue: US$225.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 60.8x202420252026
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 38.9x which is lower than its 3-year average PE of 60.8x.
  • 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 90% per year over the last three years.
  • Revenues for these companies have grown 5.0% 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 Market0.35%
Tech3.26%
IT-5.26%
Internet Services and Infrastructure-1.96%
Data Processing Services-5.62%
IT Consulting-8.79%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.5x.
    • Analysts are expecting annual earnings growth of 14.2%, which is lower than the prior year's growth of 26.6% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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
NET CloudflareUS$207.073.0%
+US$2.1b		71.1%PS33.6x
DOCN DigitalOcean HoldingsUS$95.2111.2%
+US$995.8m		209.6%PE38.2x
APLD Applied DigitalUS$34.9810.9%
+US$985.9m		644.3%PS31.3x
OKTA OktaUS$75.985.2%
+US$659.8m		-26.5%PE57.2x
TWLO TwilioUS$143.792.6%
+US$557.6m		51.2%PE643.9x

Latest News

EFOR
US$18.97
Everforth
7D
-51.9%
1Y
-63.1%
MDB
US$253.59
MongoDB
7D
-3.7%
1Y
46.2%
IBM
US$231.98
International Business Machines
7D
-8.5%
1Y
-0.2%
ACN
US$178.36
Accenture
7D
-9.8%
1Y
-39.2%

ACN: Enterprise AI Partnerships And Agent Adoption Will Drive Next Modernization Wave

Accenture's updated analyst price target edges slightly lower to about $250, as analysts balance recent target cuts tied to softer bookings, cautious macro commentary, and AI adoption uncertainty with some more constructive views following what several described as another solid quarter. Analyst Commentary Recent research updates show a split tape on Accenture, with most firms trimming price targets but framing the latest quarter as solid and the long term AI story as intact, if slower to play through than some previously expected.
CRWV
US$110.14
CoreWeave
7D
-5.7%
1Y
165.1%
APLD
US$34.98
Applied Digital
7D
10.9%
1Y
644.3%
WIX
US$75.67
Wix.com
7D
10.9%
1Y
-54.5%
SNOW
US$140.32
Snowflake
7D
-2.5%
1Y
-11.4%
NET
US$207.07
Cloudflare
7D
3.0%
1Y
71.1%

Cloudflare's Agentic AI Premium Overly Done - Further Consolidation Likely

Apr 23
CTSH
US$55.11
Cognizant Technology Solutions
7D
-10.1%
1Y
-23.6%
TWLO
US$143.79
Twilio
7D
2.6%
1Y
51.2%

Twilio: A Transition Story Caught Between Growth And Maturity

Apr 22
DOCN
US$95.21
DigitalOcean Holdings
7D
11.2%
1Y
209.6%
OKTA
US$75.98
Okta
7D
5.2%
1Y
-26.5%

OKTA: AI Agent Identity Leadership And Q4 Execution Will Drive Repricing

The analyst price target for Okta has been adjusted slightly lower to reflect a new fair value of about $100.28 per share, as analysts balance modestly higher discount rate assumptions with supportive research that highlights solid Q4 execution, improving go-to-market progress, and growing interest in Okta's role in securing AI agents. Analyst Commentary Recent research on Okta offers a mix of optimism and caution, with many firms adjusting price targets while reaffirming their broader views on the company.
SHAZ
US$42.19
SharonAI Holdings
7D
14.0%
1Y
n/a
SHOP
US$125.83
Shopify
7D
-4.1%
1Y
29.6%
MGRT
US$137.00
Mega Fortune
7D
17.9%
1Y
n/a