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U.S. IT Industry Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies121
  • 7D-2.5%
  • 3M-17.9%
  • 1Y-5.6%
  • YTD-15.8%

Over the last 7 days, the IT industry has dropped 2.5%, driven by a pullback from Shopify of 5.2%. Meanwhile, CoreWeave actually outperformed within the industry, gaining 15% in the last week. Overall the industry is down 5.6% in 12 months. Looking forward, 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
Tue, 17 Mar 2026US$863.1bUS$258.1bUS$21.5b20.5x40.1x3.3x
Thu, 12 Feb 2026US$944.9bUS$255.2bUS$22.5b24.5x42.1x3.7x
Sat, 10 Jan 2026US$1.1tUS$282.8bUS$21.0b30.9x52.5x3.9x
Mon, 08 Dec 2025US$1.1tUS$282.1bUS$21.0b30.3x52x3.9x
Wed, 05 Nov 2025US$1.1tUS$280.0bUS$20.0b28.9x57x4.1x
Fri, 03 Oct 2025US$1.1tUS$283.4bUS$20.1b32.7x53.5x3.8x
Sun, 31 Aug 2025US$988.2bUS$250.9bUS$19.3b32.7x51.2x3.9x
Tue, 29 Jul 2025US$978.8bUS$242.9bUS$17.7b27.8x55.3x4x
Thu, 26 Jun 2025US$1.0tUS$241.7bUS$17.4b28.9x58.9x4.2x
Sat, 24 May 2025US$940.5bUS$240.2bUS$16.9b29x55.5x3.9x
Mon, 21 Apr 2025US$804.6bUS$242.4bUS$18.5b33.9x43.5x3.3x
Wed, 19 Mar 2025US$885.5bUS$240.0bUS$18.7b43.2x47.4x3.7x
Fri, 14 Feb 2025US$997.2bUS$234.9bUS$16.9b52x59x4.2x
Sun, 12 Jan 2025US$855.5bUS$234.0bUS$16.5b38.9x52x3.7x
Tue, 10 Dec 2024US$922.3bUS$233.2bUS$16.4b47x56.3x4x
Thu, 07 Nov 2024US$780.2bUS$233.2bUS$16.1b45.5x48.3x3.3x
Sat, 05 Oct 2024US$791.5bUS$232.9bUS$17.8b43.3x44.6x3.4x
Mon, 02 Sep 2024US$761.2bUS$233.3bUS$17.5b38.4x43.4x3.3x
Wed, 31 Jul 2024US$741.6bUS$237.1bUS$17.4b29.2x42.7x3.1x
Fri, 28 Jun 2024US$702.9bUS$237.1bUS$17.2b27.9x40.9x3x
Sun, 26 May 2024US$707.2bUS$237.0bUS$17.2b28.2x41x3x
Tue, 23 Apr 2024US$719.3bUS$227.7bUS$13.7b24x52.3x3.2x
Thu, 21 Mar 2024US$804.9bUS$227.7bUS$14.4b22.7x56x3.5x
Sat, 17 Feb 2024US$839.7bUS$227.5bUS$14.2b23.4x59.1x3.7x
Mon, 15 Jan 2024US$799.2bUS$229.4bUS$12.9b20.7x61.8x3.5x
Wed, 13 Dec 2023US$770.8bUS$229.0bUS$12.8b20.6x60.2x3.4x
Fri, 10 Nov 2023US$690.1bUS$228.4bUS$12.6b20.6x54.6x3x
Sun, 08 Oct 2023US$668.4bUS$227.2bUS$6.5b22.3x103.3x2.9x
Tue, 05 Sep 2023US$710.1bUS$226.6bUS$6.8b21.9x104.4x3.1x
Thu, 03 Aug 2023US$686.5bUS$226.7bUS$6.4b23.6x106.9x3x
Sat, 01 Jul 2023US$679.5bUS$228.6bUS$6.1b23.6x111.5x3x
Mon, 29 May 2023US$646.8bUS$229.3bUS$5.1b23.4x127.6x2.8x
Wed, 26 Apr 2023US$567.5bUS$225.6bUS$2.7b21.2x207.7x2.5x
Fri, 24 Mar 2023US$572.4bUS$225.0bUS$2.4b22.4x234.8x2.5x
Price to Earnings Ratio

234.8x


Total Market Cap: US$572.4bTotal Earnings: US$2.4bTotal Revenue: US$225.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 67.5x202420252026
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 40.1x which is lower than its 3-year average PE of 67.5x.
  • The industry is trading close to its 3-year average PS ratio of 3.4x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 107% per year over the last three years.
  • Revenues for these companies have grown 4.7% 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-2.40%
Tech-2.42%
IT-2.53%
Internet Services and Infrastructure-0.92%
IT Consulting-4.13%
Data Processing Services-5.20%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.2x.
    • Analysts are expecting annual earnings growth of 13.4%, 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 28% 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 8.4% 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
CRWV CoreWeaveUS$85.8615.4%
+US$6.0b		n/aPS8.8x
NET CloudflareUS$207.332.9%
+US$2.1b		78.7%PS33.7x
DOCN DigitalOcean HoldingsUS$72.0125.2%
+US$1.3b		95.3%PE25.6x
AKAM Akamai TechnologiesUS$105.443.3%
+US$482.5m		27.4%PE33.8x
GDS GDS HoldingsUS$43.164.4%
+US$362.7m		21.7%PE51.2x

Latest News

OKTA
US$77.16
Okta
7D
-3.2%
1Y
-33.3%
ACN
US$199.31
Accenture
7D
-4.8%
1Y
-38.8%
CTSH
US$61.05
Cognizant Technology Solutions
7D
-5.6%
1Y
-23.7%

CTSH: AI Partnerships And New Contracts Will Support Future Upside Potential

The analyst price target for Cognizant Technology Solutions has been trimmed by about $1, reflecting a modestly higher discount rate and a slightly lower assumed future P/E as analysts balance pressure on traditional services from GenAI with expectations for new AI-driven value pools to scale. Analyst Commentary Recent Street research on Cognizant Technology Solutions reflects a mix of constructive and cautious views, with several firms adjusting price targets both higher and lower as they reassess the impact of GenAI on traditional IT services and potential new AI related revenue streams.
IBM
US$249.25
International Business Machines
7D
-1.6%
1Y
-1.5%
DOCN
US$72.01
DigitalOcean Holdings
7D
25.2%
1Y
95.3%
SHOP
US$126.58
Shopify
7D
-5.2%
1Y
31.0%
CRWV
US$85.86
CoreWeave
7D
15.4%
1Y
n/a
FSLY
US$22.79
Fastly
7D
4.4%
1Y
214.3%
EPAM
US$137.05
EPAM Systems
7D
-6.3%
1Y
-26.4%

EPAM: AI And Pricing Execution Will Support Transition Rerating Despite 2026 Headwind

The updated analyst price target for EPAM Systems reflects a modest recalibration lower, with our fair value estimate moving from about $207.53 to $191.18 as analysts factor in softer 2026 guidance tied to specific client headwinds. This is partially offset by ongoing confidence in AI related demand, pricing, and margin potential.
SNOW
US$174.40
Snowflake
7D
-4.6%
1Y
11.5%

SNOW: OpenAI Alliance And AI Workloads Will Drive Future Platform Adoption

We are trimming our Snowflake fair value estimate by about $25.80 to $341.03, reflecting a higher discount rate and lower future P/E assumption, even as analysts point to solid Q4 execution, accelerating AI use cases, and generally supportive long term growth and margin profiles in their updated price targets. Analyst Commentary Street research around Snowflake has been active, with most firms adjusting price targets while still expressing confidence in the company’s execution, AI positioning, and long term opportunity.
AKAM
US$105.44
Akamai Technologies
7D
3.3%
1Y
27.4%
NET
US$207.33
Cloudflare
7D
2.9%
1Y
78.7%

NET: AI Infrastructure And JD Cloud Partnership Will Drive Future Upside

Analysts have trimmed their average Cloudflare price target slightly by about $1 to reflect a higher discount rate and sharply lower modeled profit margins, while still highlighting continued revenue strength and questioning recent security sector selling linked to Claude Code Security news. Analyst Commentary Recent research on Cloudflare reflects a split tape, with several banks trimming price targets on valuation and margin assumptions at the same time others are upgrading ratings or lifting targets on product momentum and AI exposure.
APLD
US$27.71
Applied Digital
7D
2.5%
1Y
277.5%

APLD: Hyperscale Power Leases And New AI Campuses Will Drive Future Upside

Analysts are keeping their $36 price target on Applied Digital steady, citing recent hyperscaler leases, expanded AI infrastructure contracts, and continued buy ratings across the Street as reasons to maintain their existing valuation framework, even as they update assumptions for discount rate, growth, margins, and future P/E. Analyst Commentary Street research on Applied Digital has generally highlighted strong interest in its AI focused infrastructure model, supported by long term colocation leases and a growing pipeline of potential hyperscaler agreements.
GDS
US$43.16
GDS Holdings
7D
4.4%
1Y
21.7%
GDDY
US$82.10
GoDaddy
7D
-10.5%
1Y
-54.4%

GDDY: AI Agentic Offerings Will Support Margins And Long Term Returns

Narrative Update on GoDaddy Analysts have reset expectations for GoDaddy, with our illustrative fair value moving from about $175.00 to roughly $119.43 as lower Street price targets, tempered revenue growth assumptions, and a reduced future P/E outlook reflect concerns over softer 2026 guidance, bookings trends, and ongoing debate around AI related competitive risks, even as newer AI driven offerings and margin guidance keep longer term potential in focus. Analyst Commentary Street research has shifted sharply lower on GoDaddy's valuation assumptions, with a series of reduced price targets clustering in the US$77 to US$210 range.
SHAZ
US$24.87
SharonAI Holdings
7D
33.8%
1Y
n/a