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U.S. IT Industry Analysis

UpdatedMay 16, 2026
DataAggregated Company Financials
Companies119
  • 7D-4.1%
  • 3M-9.1%
  • 1Y-11.8%
  • YTD-19.5%

Over the last 7 days, the IT industry has dropped 7.4%, driven by a pullback from Shopify of 9.2%. Overall the industry is down 12% in 12 months. Earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 16 May 2026US$808.1bUS$258.7bUS$20.5b20.7x39.4x3.1x
Mon, 13 Apr 2026US$783.2bUS$259.8bUS$21.6b19.8x36.3x3x
Wed, 11 Mar 2026US$888.7bUS$258.0bUS$21.5b20.4x41.3x3.4x
Fri, 06 Feb 2026US$905.9bUS$255.1bUS$22.6b25.6x40.1x3.6x
Sun, 04 Jan 2026US$1.1tUS$282.9bUS$20.9b28.8x50.4x3.7x
Tue, 02 Dec 2025US$1.1tUS$281.5bUS$20.9b28.3x51x3.8x
Thu, 30 Oct 2025US$1.2tUS$283.6bUS$22.0b28.9x52.8x4.1x
Sat, 27 Sep 2025US$1.0tUS$251.9bUS$19.1b31.3x53.2x4x
Mon, 25 Aug 2025US$953.0bUS$250.5bUS$19.3b30.8x49.5x3.8x
Wed, 23 Jul 2025US$1.0tUS$241.7bUS$17.3b27.6x57.9x4.2x
Fri, 20 Jun 2025US$995.8bUS$240.4bUS$17.1b27.2x58.3x4.1x
Sun, 18 May 2025US$943.4bUS$239.9bUS$16.9b29.7x55.8x3.9x
Tue, 15 Apr 2025US$808.0bUS$242.3bUS$18.5b33.3x43.7x3.3x
Thu, 13 Mar 2025US$875.7bUS$240.0bUS$18.7b47.3x46.9x3.6x
Sat, 08 Feb 2025US$978.3bUS$234.2bUS$16.3b48.1x60.1x4.2x
Mon, 06 Jan 2025US$871.5bUS$234.0bUS$16.5b49.1x53x3.7x
Wed, 04 Dec 2024US$893.3bUS$233.1bUS$16.3b46.1x54.9x3.8x
Fri, 01 Nov 2024US$772.1bUS$233.2bUS$15.9b44.3x48.5x3.3x
Sun, 29 Sep 2024US$796.7bUS$233.8bUS$17.8b40.3x44.7x3.4x
Tue, 27 Aug 2024US$751.9bUS$233.1bUS$17.4b34.4x43.1x3.2x
Thu, 25 Jul 2024US$743.4bUS$236.9bUS$17.2b29.6x43.3x3.1x
Sat, 22 Jun 2024US$699.9bUS$237.1bUS$17.2b27.8x40.7x3x
Mon, 20 May 2024US$716.6bUS$236.8bUS$17.3b25.3x41.5x3x
Wed, 17 Apr 2024US$725.5bUS$227.7bUS$13.7b24.6x52.8x3.2x
Fri, 15 Mar 2024US$816.1bUS$227.7bUS$14.4b22.7x56.8x3.6x
Sun, 11 Feb 2024US$856.9bUS$226.8bUS$13.1b22.7x65.4x3.8x
Tue, 09 Jan 2024US$758.6bUS$229.5bUS$12.8b20x59.1x3.3x
Thu, 07 Dec 2023US$751.2bUS$229.0bUS$12.8b21.1x58.7x3.3x
Sat, 04 Nov 2023US$679.2bUS$228.3bUS$12.1b19.8x55.9x3x
Mon, 02 Oct 2023US$662.3bUS$227.2bUS$6.5b24.3x102.4x2.9x
Wed, 30 Aug 2023US$686.8bUS$226.3bUS$6.6b21.6x103.7x3x
Fri, 28 Jul 2023US$694.4bUS$228.6bUS$6.2b25.5x112x3x
Sun, 25 Jun 2023US$661.8bUS$228.6bUS$6.1b23.4x107.8x2.9x
Tue, 23 May 2023US$647.5bUS$229.1bUS$5.1b22.8x126.5x2.8x
Price to Earnings Ratio

126.5x


Total Market Cap: US$647.5bTotal Earnings: US$5.1bTotal Revenue: US$229.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 58.9x202420252026
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 38.8x which is lower than its 3-year average PE of 58.9x.
  • 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-0.92%
Tech0.94%
IT-4.08%
Internet Services and Infrastructure-3.02%
IT Consulting-5.42%
Data Processing Services-6.16%
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 13.1%, 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 8.0% 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
SNOW SnowflakeUS$157.473.3%
+US$1.7b		-14.0%PS11.6x
BRUN Boost RunUS$29.6057.2%
+US$1.6b		192.8%PS71.4x
MDB MongoDBUS$312.164.2%
+US$1.0b		63.2%PS10.2x
VRSN VeriSignUS$297.573.2%
+US$852.8m		5.1%PE32.2x
NET CloudflareUS$197.560.7%
+US$505.5m		25.7%PS30x

Latest News

VNET
US$10.09
VNET Group
7D
13.4%
1Y
56.9%
AKAM
US$150.88
Akamai Technologies
7D
2.1%
1Y
93.4%
CRWV
US$107.30
CoreWeave
7D
-6.0%
1Y
33.6%
NET
US$197.56
Cloudflare
7D
0.7%
1Y
25.7%
APLD
US$42.56
Applied Digital
7D
3.2%
1Y
523.1%
Seeking Alpha • 18h

Buy Core Scientific Over Applied Digital

Summary Core Scientific (CORZ) offers a more attractive risk/reward profile than Applied Digital (APLD) due to its larger, immediately leasable power capacity and faster delivery schedule. CORZ is set to deliver 590 MW to CoreWeave over 12 months, with 243 MW already being billed and the remainder expected ahead of APLD’s timeline. APLD’s near-term upside is limited, with most capacity set for delivery further out, while trading at a premium 23x FY27 sales versus CORZ’s 14x CY26 sales. Both APLD and CORZ are highly dependent on CoreWeave as an anchor customer, and face execution and interest rate risks due to capital-intensive balance sheets. Read the full article on Seeking Alpha
SHOP
US$100.28
Shopify
7D
-9.2%
1Y
-9.5%
IBM
US$219.30
International Business Machines
7D
-4.6%
1Y
-17.8%
Seeking Alpha • May 15

IBM: The Business Improved Faster Than Many Investors Realize

Summary IBM has transformed into a higher-quality, more predictable business with a focus on recurring software revenue and enterprise integration. Red Hat remains a strategic asset, driving hybrid cloud exposure and reinforcing IBM's relevance in enterprise IT. Disciplined capital allocation, improved balance sheet, and resilient free cash flow underpin IBM’s defensive appeal and dividend support. I continue to rate IBM a Buy, viewing risk/reward as attractive for long-term investors despite the recent re-rating. Read the full article on Seeking Alpha
WIX
US$54.67
Wix.com
7D
-31.8%
1Y
-70.1%
ACN
US$168.82
Accenture
7D
-6.4%
1Y
-46.9%
CTSH
US$47.13
Cognizant Technology Solutions
7D
-8.8%
1Y
-42.1%
DOCN
US$154.87
DigitalOcean Holdings
7D
-5.5%
1Y
398.0%
VRSN
US$297.57
VeriSign
7D
3.2%
1Y
5.1%
Narrative Update • May 13

VRSN: 2026 Earnings Guidance Will Test Elevated Market Expectations

The analyst fair value estimate for VeriSign has shifted from $250 to $265. This change is broadly aligned with recent price target increases from several firms as analysts factor in updated views on revenue growth, margins, discount rates, and future P/E assumptions.
SNOW
US$157.47
Snowflake
7D
3.3%
1Y
-14.0%
Seeking Alpha • May 13

Snowflake Short-Term Squeeze Makes It A Perfect Play In AI Data Cloud

Summary Snowflake (SNOW) is rebounding after a 45% decline, driven by robust enterprise AI adoption. SNOW’s AI Data Cloud, strong partnerships, and high customer retention fuel 30% YoY product revenue growth, with $9.77B in remaining performance obligations. Despite a steep price-to-sales ratio (~11.7x TTM), SNOW offers aggressive growth potential, with free cash flow margins around 24.5% and manageable capex. Valuation models suggest up to 44% upside in twelve months if growth and margins persist, but caution is warranted for value-focused investors. However, investors should watch out for upcoming quarterly results to see how the company performs aagainst its own guidance. That will paint a picture of how likely it is to meet its full-year forecasts. Read the full article on Seeking Alpha
MDB
US$312.16
MongoDB
7D
4.2%
1Y
63.2%
IT
US$146.23
Gartner
7D
-7.8%
1Y
-67.4%
Narrative Update • May 10

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

Analysts have reduced their price target for Gartner to $199 from about $253, citing a combination of updated assumptions for revenue growth, profit margins and future P/E that now point to a lower fair value estimate. What's in the News From January 1, 2026 to March 31, 2026, Gartner repurchased 3,198,430 shares, representing 4.51% of its stock for US$507.23 million, under the long running buyback program announced on May 7, 2015 (Key Developments).