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U.S. IT Industry Analysis

UpdatedOct 08, 2025
DataAggregated Company Financials
Companies116
  • 7D2.7%
  • 3M1.1%
  • 1Y21.0%
  • YTD17.3%

In the last week, the IT industry is up 2.7%, with Shopify up 8.5%. Meanwhile, CoreWeave actually underperformed within the industry, shrinking 5.9% in the last week. In the last 12 months, the industry was up 21%. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Tue, 08 Aug 2023US$684.7bUS$226.3bUS$6.4b23.7x106.7x3x
Thu, 06 Jul 2023US$679.6bUS$228.6bUS$6.1b23.8x111.5x3x
Sat, 03 Jun 2023US$673.6bUS$228.3bUS$5.9b23.9x113.8x3x
Mon, 01 May 2023US$581.7bUS$225.4bUS$3.2b21.3x182.2x2.6x
Wed, 29 Mar 2023US$577.0bUS$225.7bUS$2.3b22.9x247.4x2.6x
Fri, 24 Feb 2023US$2.0tUS$462.2bUS$22.4b26.6x87.7x4.3x
Sun, 22 Jan 2023US$2.0tUS$458.2bUS$39.1b28.3x51.4x4.4x
Tue, 20 Dec 2022US$1.8tUS$457.7bUS$39.2b27.2x47.1x4x
Thu, 17 Nov 2022US$1.9tUS$456.2bUS$38.0b28.1x51.1x4.3x
Sat, 15 Oct 2022US$1.7tUS$449.5bUS$41.7b26.3x41.8x3.9x
Price to Earnings Ratio

41.8x


Total Market Cap: US$1.7tTotal Earnings: US$41.7bTotal Revenue: US$449.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.6x202320242025
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 55.4x which is lower than its 3-year average PE of 68.6x.
  • 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 22% per year over the last three years,
  • Revenues have also declined 14% 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 Market0.44%
Tech1.02%
IT2.67%
Internet Services and Infrastructure3.56%
IT Consulting1.78%
Data Processing Services-1.27%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 28.7%, which is lower than the prior year's growth of 54.4% per year.
  • Investors are most pessimistic about the Data Processing Services industry, which is trading close to its 3-year average of 29.2x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 29% over the next 5 years.
  • However this is lower than its past earnings growth rate of 54% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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$166.3511.2%
+US$21.8b		99.4%PE92.2x
SNOW SnowflakeUS$250.218.5%
+US$6.7b		109.1%PS20.6x
ACN AccentureUS$252.983.8%
+US$5.8b		-30.7%PE20.5x
IBM International Business MachinesUS$289.461.0%
+US$2.8b		23.5%PE46x
TWLO TwilioUS$114.0511.1%
+US$1.7b		64.9%PE864.4x

Latest News

CRWV
US$139.98
CoreWeave
7D
2.1%
1Y
n/a
SHOP
US$166.35
Shopify
7D
11.2%
1Y
99.4%
EPAM
US$151.06
EPAM Systems
7D
-0.8%
1Y
-22.2%
SNOW
US$250.21
Snowflake
7D
8.5%
1Y
109.1%
TWLO
US$114.05
Twilio
7D
11.1%
1Y
64.9%
KC
US$14.49
Kingsoft Cloud Holdings
7D
-4.0%
1Y
320.0%
ACN
US$252.98
Accenture
7D
3.8%
1Y
-30.7%

Gen AI And Industry X Investments Will Drive Digital Transformation

Accenture's analyst price target has been revised downward from approximately $305 to $278 per share. This change reflects recent reductions in projected revenue growth rates and industry-wide valuation multiples, as analysts cite persistent margin pressures and a mixed demand outlook despite ongoing investments in generative AI.
IT
US$243.99
Gartner
7D
-2.8%
1Y
-53.1%

Gartner (NYSE:IT) Has A Pretty Healthy Balance Sheet

Oct 03
Gartner (NYSE:IT) Has A Pretty Healthy Balance Sheet
VRSN
US$267.88
VeriSign
7D
-2.6%
1Y
44.0%
WIX
US$135.08
Wix.com
7D
-12.2%
1Y
-16.2%
VNET
US$9.89
VNET Group
7D
-8.1%
1Y
147.9%

Expanding Data Centers Will Fuel China's Digital Transformation

VNET Group's analyst price target has increased despite a notable decline in net profit margin, as investors focus on a higher future P/E ratio, reflecting improved sentiment and raising the consensus fair value from $13.46 to $14.09. What's in the News VNET Group secured a 40MW wholesale order from a leading internet company for its new Gu'an IDC Campus near Beijing, targeting AI and high-tech sector demand.
NET
US$220.00
Cloudflare
7D
1.4%
1Y
159.0%
CTSH
US$68.40
Cognizant Technology Solutions
7D
2.8%
1Y
-10.9%
GDS
US$37.84
GDS Holdings
7D
-5.9%
1Y
80.5%

900MW Land In China Will Expand AI Data Centers

GDS Holdings’ consensus price target has increased to $47.25 as analysts cite improved balance sheet strength from asset-backed deals and a REIT IPO, anticipated dual-primary listing in Hong Kong, and resumed high-end chip shipments in China as catalysts for higher valuation and growth. Analyst Commentary Bullish analysts cite improved valuation and balance sheet strength following asset-backed securities deals and a commercial real estate investment trust (C-REIT) IPO, which reduced net debt.
DXC
US$13.34
DXC Technology
7D
-3.3%
1Y
-34.2%

AI And Cloud Initiatives Will Shape Future Opportunities And Risks

DXC Technology's fair value estimate has declined modestly, primarily reflecting a slight drop in its forward P/E multiple to 17.78x, while revenue growth expectations remain unchanged, resulting in a reduced consensus price target of $15.12. What's in the News DXC Technology formed a strategic partnership with 7AI to integrate autonomous AI agents into its Security Operations Centers, enhancing speed, accuracy, and coverage in managed security services globally.
IBM
US$289.46
International Business Machines
7D
1.0%
1Y
23.5%

Estimating The Intrinsic Value Of International Business Machines Corporation (NYSE:IBM)

Aug 20
Estimating The Intrinsic Value Of International Business Machines Corporation (NYSE:IBM)