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U.S. IT Industry Analysis

UpdatedSep 03, 2026
DataAggregated Company Financials
Companies123
  • 7D-1.9%
  • 3M-3.7%
  • 1Y3.7%
  • YTD-4.3%

Over the last 7 days, the IT industry has dropped 1.0%, driven by Shopify declining 7.0%. Meanwhile, Okta actually outperformed within the industry, gaining 27% in the last week. Over the past 12 months, the industry was up 4.7%. Looking forward, earnings are forecast to grow by 22% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 03 Sep 2026US$997.2bUS$264.9bUS$21.0b20.4x47.6x3.8x
Sat, 01 Aug 2026US$921.9bUS$261.6bUS$19.7b19x46.8x3.5x
Mon, 29 Jun 2026US$894.3bUS$260.6bUS$20.2b16.4x44.2x3.4x
Wed, 27 May 2026US$872.1bUS$258.9bUS$20.0b20.5x43.7x3.4x
Fri, 24 Apr 2026US$895.7bUS$259.7bUS$21.6b20.5x41.5x3.4x
Sun, 22 Mar 2026US$849.6bUS$259.6bUS$21.6b19.4x39.4x3.3x
Tue, 17 Feb 2026US$900.7bUS$256.5bUS$21.7b23.2x41.5x3.5x
Thu, 15 Jan 2026US$1.1tUS$252.7bUS$19.8b29.8x53.7x4.2x
Sat, 13 Dec 2025US$1.1tUS$282.0bUS$21.0b29.9x52.7x3.9x
Mon, 10 Nov 2025US$1.1tUS$280.3bUS$20.2b31.1x53.9x3.9x
Wed, 08 Oct 2025US$1.1tUS$282.4bUS$20.1b32.7x55.4x3.9x
Fri, 05 Sep 2025US$969.0bUS$250.9bUS$19.3b29.2x50.2x3.9x
Sun, 03 Aug 2025US$920.8bUS$243.5bUS$17.8b26.5x51.6x3.8x
Tue, 01 Jul 2025US$1.0tUS$241.7bUS$17.4b29.2x58.5x4.2x
Thu, 29 May 2025US$958.4bUS$240.3bUS$17.0b29x56.2x4x
Sat, 26 Apr 2025US$833.3bUS$242.4bUS$18.0b35x46.4x3.4x
Mon, 24 Mar 2025US$868.0bUS$240.8bUS$19.2b44.7x45.1x3.6x
Wed, 19 Feb 2025US$1.0tUS$239.4bUS$18.2b43.7x57x4.3x
Fri, 17 Jan 2025US$862.4bUS$234.1bUS$16.3b41.5x52.8x3.7x
Sun, 15 Dec 2024US$894.9bUS$233.2bUS$16.4b45.5x54.6x3.8x
Tue, 12 Nov 2024US$816.7bUS$233.2bUS$16.1b46.6x50.6x3.5x
Thu, 10 Oct 2024US$806.1bUS$232.8bUS$17.8b44.1x45.4x3.5x
Sat, 07 Sep 2024US$739.3bUS$233.3bUS$17.5b35.4x42.1x3.2x
Mon, 05 Aug 2024US$703.2bUS$232.5bUS$16.1b28.6x43.6x3x
Wed, 03 Jul 2024US$712.9bUS$237.0bUS$17.2b29.9x41.5x3x
Fri, 31 May 2024US$676.5bUS$237.1bUS$17.3b27.8x39.1x2.9x
Sun, 28 Apr 2024US$712.8bUS$228.0bUS$14.4b25.1x49.6x3.1x
Tue, 26 Mar 2024US$776.8bUS$227.6bUS$14.6b22.3x53.3x3.4x
Thu, 22 Feb 2024US$811.4bUS$227.5bUS$14.2b22.4x57.1x3.6x
Sat, 20 Jan 2024US$800.1bUS$229.4bUS$12.9b21.4x61.8x3.5x
Mon, 18 Dec 2023US$786.3bUS$229.0bUS$12.8b20.3x61.4x3.4x
Wed, 15 Nov 2023US$688.6bUS$228.4bUS$12.6b21.2x54.5x3x
Fri, 13 Oct 2023US$676.3bUS$227.2bUS$6.5b20.2x104.5x3x
Sun, 10 Sep 2023US$704.4bUS$226.6bUS$6.8b23.2x103.5x3.1x
Price to Earnings Ratio

103.5x


Total Market Cap: US$704.4bTotal Earnings: US$6.8bTotal Revenue: US$226.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 52.5x202420252026
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 48.9x which is lower than its 3-year average PE of 52.5x.
  • 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 45% per year over the last three years.
  • Revenues for these companies have grown 5.3% 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 Market-0.50%
Tech0.93%
IT-1.91%
IT Consulting1.28%
Data Processing Services-0.50%
Internet Services and Infrastructure-3.94%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.9x.
    • Analysts expect its future annual earnings growth (14.4%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 32% over the next 5 years.
  • However this is lower than its past earnings growth rate of 81% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.1% 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
OKTA OktaUS$163.1521.4%
+US$5.2b		81.6%PE96.4x
ACN AccentureUS$187.683.5%
+US$3.9b		-26.2%PE14.7x
IBM International Business MachinesUS$231.700.8%
+US$1.7b		-5.1%PE20.4x
GDDY GoDaddyUS$101.876.6%
+US$801.7m		-29.0%PE14.2x
CTSH Cognizant Technology SolutionsUS$63.402.1%
+US$590.1m		-11.7%PE12.9x

Latest News

MDB
US$375.40
MongoDB
7D
-7.6%
1Y
20.0%
SHOP
US$141.87
Shopify
7D
-5.6%
1Y
1.2%
FSLY
US$20.43
Fastly
7D
-12.3%
1Y
177.6%
Seeking Alpha • 16h

Fastly: Record Q2 Confirms The Platform Inflection

Summary Fastly is transforming from a struggling CDN to a high-growth edge cloud platform, with Q2 revenue up 23% YoY and record profitability. Q2 results beat and raised guidance across all lines, with gross margin at 65.8%, operating margin at 14.7%, and NRR improving to 117%. The Security and Compute segments are driving growth, now at a $200M run rate and growing 46% YoY, supporting strong operating leverage. We maintain a buy rating on FSLY with a $34 price target, reflecting 50% upside as Rule-of-40 metrics and platform strategy drive multiple expansion. Read the full article on Seeking Alpha
EPAM
US$117.20
EPAM Systems
7D
7.2%
1Y
-32.7%
Seeking Alpha • 20h

EPAM Systems: AI Is Eating The Old Business, But 8.7x Earnings Is Too Cheap

Summary EPAM Systems faces near-term revenue headwinds as AI cannibalizes legacy services, but trades at just 8.7x forward non-GAAP earnings. AI-native revenue now exceeds 11% of EPAM, growing double-digit sequentially, while margins and adjusted EPS are improving despite flat topline growth. Engine Capital's activist push for a $750M buyback leverages EPAM's strong balance sheet and could materially shrink the share count at current valuations. I rate EPAM a Buy: the stock is priced for too much permanence in the current transition, with upside if AI-native work fills the legacy gap by 2027. Read the full article on Seeking Alpha
NET
US$272.74
Cloudflare
7D
-4.3%
1Y
32.6%
APLD
US$24.91
Applied Digital
7D
-7.3%
1Y
73.2%
Seeking Alpha • Sep 01

Applied Digital: A Meltdown Worth A Buy - Crypto Miner Turned HPC Provider

Summary A 15Y take-or-pay contract backlog, expanded opportunities of up to $85.66B, and aggressive power procurements underscore Applied Digital's robust HPC monetization prospects. The nascent capacity of 100 MW as of FQ4 '26 and the outsized, multi-year backlog of 1,410 MW by 2028 imply their accelerated growth prospects. The recent meltdown has unlocked APLD's cheap FY2029 EV/Sales of 4.75x against the big 5 hyperscalers' median of 6.81x. Risks include elevated short interest, negative FCF, rising net debt, and ongoing equity dilution, making it suitable only for long-term, contrarian investors. APLD is initiated as a buy here, aided by the oversold technicals and the potential bottoming as per the historical uptrend line. Read the full article on Seeking Alpha
SNOW
US$305.84
Snowflake
7D
-3.0%
1Y
33.4%
Seeking Alpha • Aug 31

Snowflake Earnings Preview: The AI Trade Is Moving Into Software

Summary Snowflake Inc. may be entering the second phase of the AI trade, where software starts monetizing the infrastructure boom. The key driver is not just AI revenue. CoCo and CoWork can accelerate migrations, workloads and platform consumption. Expectations are high and valuation is expensive, so this quarter needs more than a simple beat. I want stronger product revenue, NRR and guidance. I am already long SNOW. A strong Q2 could justify doubling my position, with $385 as my first target. Read the full article on Seeking Alpha
OKTA
US$163.15
Okta
7D
21.4%
1Y
81.6%
Seeking Alpha • Aug 31

Okta: Buy The AI Identity Breakout, But Do Not Chase Blindly

Summary Okta, Inc. delivered a strong Q2 with 11% revenue growth, robust backlog, improved cash flow, and raised guidance, supporting my 'Buy' rating. OKTA's positioning in AI-agent security and identity governance is gaining traction, with early enterprise adoption suggesting durable demand beyond generic software trends. Free cash flow margin expanded from 22% to 28%, and the balance sheet strengthened, enhancing flexibility without heavy CapEx requirements. OKTA stock valuation is less compelling post-rally, so I maintain a Buy rather than Strong Buy as further revenue acceleration from AI-agent security is needed. Read the full article on Seeking Alpha
ACN
US$187.68
Accenture
7D
3.5%
1Y
-26.2%
Narrative Update • Aug 30

Accenture Could Blossom with a 3.6% Dividend Yield and AI-Driven Growth

ACN is beaten down right now.... Current price is $189.61 as of 28 Aug 2026.
IBM
US$231.70
International Business Machines
7D
0.8%
1Y
-5.1%
CRWV
US$80.93
CoreWeave
7D
-8.0%
1Y
-10.0%
GDDY
US$101.87
GoDaddy
7D
6.6%
1Y
-29.0%
Narrative Update • Aug 26

GDDY: AI Execution And Margin Expansion Will Drive Next Repricing Phase

Analysts have trimmed the GoDaddy fair value estimate from about $176.62 to roughly $150.71. This reflects slightly softer revenue growth assumptions, a higher discount rate, and lower expected future P/E multiples, even as margin expectations remain broadly stable.
DOCN
US$104.87
DigitalOcean Holdings
7D
-8.8%
1Y
227.3%
CTSH
US$63.40
Cognizant Technology Solutions
7D
2.1%
1Y
-11.7%
Narrative Update • Aug 18

CTSH: AI Builder Wins And Large Deals Will Drive Future Repricing

Cognizant Technology Solutions' analyst fair value estimate has been updated from $108.00 to about $83.70, reflecting analysts' revised expectations for revenue growth, margins, and future P/E following a mix of reduced and raised price targets across the Street. Analyst Commentary Recent research on Cognizant Technology Solutions highlights a wide range of views, with several bullish analysts pointing to improving execution, solid bookings, and sector relative value as key supports for the stock's valuation.
WIX
US$86.69
Wix.com
7D
5.3%
1Y
-40.1%
Narrative Update • Aug 14

WIX: AI Execution And Cost Restructuring Will Drive Future Margin Expansion

For Wix.com, the updated analyst price target reflects a moderation in fair value from $117.92 to $112.11 as analysts weigh improved AI driven efficiency at Base44 and higher long term P/E assumptions against more cautious views on growth and margins. Analyst Commentary Recent Street research on Wix.com shows a mix of optimism and caution, with bullish analysts highlighting AI driven efficiency at Base44, improving unit economics and solid execution in recent quarters, while more cautious voices focus on core website trends, partner channel headwinds and the need for clearer proof that AI investments can support durable growth and margins.
DXC
US$11.63
DXC Technology
7D
10.2%
1Y
-19.8%