U.S. IT Industry Analysis

Industry Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Fri, 15 May 2026	US$805.0b	US$258.4b	US$20.6b	22.5x	39.1x	3.1x
Sun, 12 Apr 2026	US$783.1b	US$259.8b	US$21.6b	19.8x	36.3x	3x
Tue, 10 Mar 2026	US$888.9b	US$258.0b	US$21.5b	21.1x	41.3x	3.4x
Thu, 05 Feb 2026	US$931.3b	US$255.1b	US$22.6b	26.1x	41.2x	3.7x
Sat, 03 Jan 2026	US$1.1t	US$282.9b	US$20.9b	28.8x	51.2x	3.8x
Mon, 01 Dec 2025	US$1.1t	US$281.5b	US$20.9b	28.1x	51x	3.8x
Wed, 29 Oct 2025	US$1.2t	US$283.8b	US$22.1b	29.9x	52.4x	4.1x
Fri, 26 Sep 2025	US$1.0t	US$251.9b	US$19.1b	31.3x	53.4x	4.1x
Sun, 24 Aug 2025	US$953.0b	US$250.5b	US$19.3b	30.8x	49.5x	3.8x
Tue, 22 Jul 2025	US$1.0t	US$241.7b	US$17.3b	27.9x	57.9x	4.2x
Thu, 19 Jun 2025	US$1.0t	US$240.4b	US$17.1b	27.2x	58.6x	4.2x
Sat, 17 May 2025	US$937.0b	US$239.9b	US$16.9b	29.7x	55.4x	3.9x
Mon, 14 Apr 2025	US$808.0b	US$242.3b	US$18.5b	32.5x	43.8x	3.3x
Wed, 12 Mar 2025	US$885.2b	US$239.9b	US$18.3b	41x	48.3x	3.7x
Fri, 07 Feb 2025	US$998.5b	US$234.1b	US$16.3b	45.4x	61.4x	4.3x
Sun, 05 Jan 2025	US$871.5b	US$234.0b	US$16.5b	49.1x	53x	3.7x
Tue, 03 Dec 2024	US$894.5b	US$233.1b	US$16.3b	46.8x	55x	3.8x
Thu, 31 Oct 2024	US$794.7b	US$232.9b	US$15.7b	43.2x	50.5x	3.4x
Sat, 28 Sep 2024	US$805.3b	US$233.8b	US$17.8b	40.3x	45.2x	3.4x
Mon, 26 Aug 2024	US$752.0b	US$233.1b	US$17.4b	34.1x	43.1x	3.2x
Wed, 24 Jul 2024	US$743.7b	US$236.9b	US$17.2b	29.8x	43.3x	3.1x
Fri, 21 Jun 2024	US$681.9b	US$237.2b	US$17.3b	27.4x	39.5x	2.9x
Sun, 19 May 2024	US$716.7b	US$236.8b	US$17.3b	25.3x	41.5x	3x
Tue, 16 Apr 2024	US$735.7b	US$227.8b	US$13.7b	24.4x	53.5x	3.2x
Thu, 14 Mar 2024	US$815.3b	US$227.8b	US$14.4b	23.1x	56.7x	3.6x
Sat, 10 Feb 2024	US$856.9b	US$226.8b	US$13.1b	22.7x	65.4x	3.8x
Mon, 08 Jan 2024	US$758.6b	US$229.5b	US$12.8b	20x	59.1x	3.3x
Wed, 06 Dec 2023	US$759.7b	US$228.9b	US$12.7b	21.3x	59.6x	3.3x
Fri, 03 Nov 2023	US$636.8b	US$228.1b	US$12.1b	20.6x	52.6x	2.8x
Sun, 01 Oct 2023	US$662.3b	US$227.2b	US$6.5b	24.3x	102.4x	2.9x
Tue, 29 Aug 2023	US$674.4b	US$226.3b	US$6.6b	21.2x	101.9x	3x
Thu, 27 Jul 2023	US$694.7b	US$228.6b	US$6.2b	25.5x	112x	3x
Sat, 24 Jun 2023	US$661.8b	US$228.6b	US$6.1b	23.4x	107.8x	2.9x
Mon, 22 May 2023	US$639.0b	US$229.1b	US$5.1b	21.8x	124.9x	2.8x

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 39.1x which is lower than its 3-year average PE of 59.0x.

The 3-year average PS ratio of 3.5x is higher than the industry's current PS ratio of 3.1x.

Past Earnings Growth

The earnings for companies in the IT industry have grown 59% per year over the last three years.
Revenues for these companies have grown 4.1% 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	0.55%
Tech	3.17%
IT	-7.32%
IT Consulting	-6.89%
Data Processing Services	-7.32%
Internet Services and Infrastructure	-7.66%

Industry PE

Investors are most optimistic about the Data Processing Services industry, which is trading close to its 3-year average PE ratio of 27.6x.

Analysts are expecting annual earnings growth of 13.5%, which is lower than the prior year's growth of 24.4% per year.

Forecasted Growth

Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 26% over the next 5 years.
However this is lower than its past earnings growth rate of 86% 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?

Company	Last Price	7D	1Y	Valuation
AKAM Akamai Technologies	US$161.14	32.1% +US$5.5b	107.9%	PE53.8x
SNOW Snowflake	US$152.37	9.0% +US$4.4b	-16.0%	PS11.2x
VRSN VeriSign	US$295.14	7.0% +US$1.8b	6.8%	PE32x
RXT Rackspace Technology	US$5.77	154.2% +US$872.3m	350.8%	PS0.5x
MDB MongoDB	US$303.00	3.3% +US$769.9m	59.1%	PS9.9x

IBM Announces Red Hat AI Inference and Red Hat OpenShift Virtualization Service on IBM Cloud

IBM announced two new managed services – Red Hat AI Inference on IBM Cloud and Red Hat OpenShift Virtualization Service on IBM Cloud – to help enterprises accelerate AI adoption and run security-forward, scalable and predictable virtualization environments. Red Hat AI Inference on IBM Cloud, with built-in governance controls, is designed to help clients reliably integrate real-time AI inferencing directly into their production workflows across hybrid cloud environments. Red Hat OpenShift Virtualization Service on IBM Cloud provides a managed path to help clients migrate and run virtual machines (VMs) securely and at scale. Red Hat AI Inference on IBM Cloud is delivered as a managed service designed to span developer teams and agents. It is built to enable organizations to standardize the orchestration, performance and governance of AI models across the enterprise while freeing developers and platform teams to focus on delivering the value-added applications and services their clients need. Red Hat OpenShift Virtualization Service on IBM Cloud is a managed virtualization service that can help enterprises migrate and operate VM-based workloads on Red Hat OpenShift with Kubernetes-based infrastructure, automated lifecycle management and a consistent foundation toward containerization and application modernization. These new services build on IBM's existing managed offerings across Red Hat Enterprise Linux, Red Hat OpenShift, Red Hat Ansible Automation Platform and Red Hat AI. Red Hat AI Inference on IBM Cloud is an enterprise-ready, fully managed inference service designed to empower clients to run production-grade AI models without the complexity of managing GPUs, infrastructure or AI platforms. It brings together Red Hat AI's high-performance inference engine with IBM Cloud's enterprise-grade capabilities to help enterprises deploy AI models built for consistent performance and predictable cost. Operated and maintained by IBM Cloud, the service demonstrates how Red Hat AI can operate at enterprise scale with the security capabilities, reliability, and performance required for production workloads. IBM Cloud is the only cloud that provides a fully managed Red Hat AI add-on providing access to the full capabilities of Red Hat AI. Key features include: Production grade performance at enterprise scale: The service is powered by vLLM and Red Hat AI's inference engine, optimized for high throughput and low latency, and designed to enable agents and applications to deliver consistent real-time performance. The model catalog includes Granite 4.0 H Small (IBM), Mistral-Small-3.2-24B-Instruct, Llama 3.3 70B Instruct, GPT-OSS-120B, and Nemotron-3-Nano-30B-FP8 with more open models and custom models planned starting in May 2026. Accelerated time to production: Designed to allow developers to integrate quickly using familiar OpenAI compatible APIs and without the need to manage GPUs or tuning runtimes, helping accelerate time-to-value. Built-in security capabilities and governance: Integration with IBM Cloud IAM, audit logging, privacy controls, and SLA backed reliability is designed to give enterprises full visibility and governance over model use and to support mission critical applications. Models-as-a-Service: Red Hat AI Inference enables organizations to set up AI models as API-accessible, shared resources, promoting rapid AI adoption while reducing infrastructure burden. Red Hat AI Inference on IBM Cloud will be generally available on May 22, 2026. Red Hat OpenShift Virtualization Service on IBM Cloud is in limited availability and is expected to be generally available in June 2026. Product features and timelines are subject to change at IBM's sole discretion and may not be available in all countries. Nothing in this release creates any warranties or alters applicable license terms. Statements regarding IBM's future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only.

U.S. IT Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

Latest News

Akamai Technologies, Inc. (NasdaqGS:AKAM) entered into a definitive agreement to acquire LayerX Security Ltd. for approximately $210 million.

Wix.com Shares Drop Sharply After Earnings Miss and Higher AI-Related Costs

Sezzle Inc. Provides Update On Antitrust Case Against Shopify Inc

Accenture Shares Face Pressure as Federal AI Deal Offsets Consulting Uncertainty

CoreWeave: Q1 Confirmed The Math Doesn't Work

Cognizant Lifts Outlook With Q1 Growth Project Leap and Astreya Deal Sharpen AI Focus

IBM Announces Red Hat AI Inference and Red Hat OpenShift Virtualization Service on IBM Cloud

DigitalOcean Raises Guidance as AI Drives Surging Growth and Revenue Tops Expectations

VRSN: 2026 Earnings Guidance Will Test Elevated Market Expectations

VNET Group, Inc. to Report Q1, 2026 Results on May 26, 2026

MongoDB, Inc., Annual General Meeting, Jun 30, 2026

Now 21% undervalued

Applied Digital Secures $7.5 Billion AI Lease as Contracted Revenue Tops $23 Billion

IT: Expanded Buybacks And Higher Margins Will Support Long Term Returns

Cloudflare, Inc. Expects to Reduce Workforce by Approximately 20%