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U.S. IT Industry Analysis

UpdatedJan 26, 2026
DataAggregated Company Financials
Companies124
  • 7D-4.2%
  • 3M-8.1%
  • 1Y7.4%
  • YTD-0.6%

Over the last 7 days, the IT industry has dropped 4.2%, driven by Shopify declining 12%. On the other hand Twilio is actually up 7.8%. Over the past 12 months, the industry was up 7.4%. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 27 Jan 2026US$1.0tUS$252.7bUS$19.8b27.5x51.2x4x
Thu, 25 Dec 2025US$1.1tUS$283.1bUS$20.9b29.6x52.7x3.9x
Sat, 22 Nov 2025US$1.0tUS$281.4bUS$20.9b27.8x48.2x3.6x
Mon, 20 Oct 2025US$1.1tUS$282.7bUS$20.0b31.7x53.7x3.8x
Wed, 17 Sep 2025US$1.0tUS$250.9bUS$19.3b29.2x52x4x
Fri, 15 Aug 2025US$960.7bUS$250.2bUS$19.3b31.4x49.8x3.8x
Sun, 13 Jul 2025US$962.6bUS$241.7bUS$17.4b28.4x55.5x4x
Tue, 10 Jun 2025US$989.0bUS$240.5bUS$17.1b29.3x57.9x4.1x
Thu, 08 May 2025US$855.1bUS$238.5bUS$17.0b32.7x50.3x3.6x
Sat, 05 Apr 2025US$832.6bUS$242.3bUS$18.5b30.9x45.1x3.4x
Mon, 03 Mar 2025US$947.1bUS$239.9bUS$18.0b39.2x52.6x3.9x
Wed, 29 Jan 2025US$906.2bUS$234.1bUS$16.3b43.7x55.5x3.9x
Fri, 27 Dec 2024US$879.1bUS$234.7bUS$16.7b41.1x52.6x3.7x
Sun, 24 Nov 2024US$876.1bUS$233.0bUS$16.3b41.6x53.7x3.8x
Tue, 22 Oct 2024US$831.5bUS$232.8bUS$17.8b43.5x46.8x3.6x
Thu, 19 Sep 2024US$765.7bUS$233.3bUS$17.5b35.5x43.6x3.3x
Sat, 17 Aug 2024US$743.5bUS$232.8bUS$17.5b35.3x42.4x3.2x
Mon, 15 Jul 2024US$729.5bUS$236.9bUS$17.2b28x42.5x3.1x
Wed, 12 Jun 2024US$684.1bUS$237.2bUS$17.3b27.7x39.7x2.9x
Fri, 10 May 2024US$726.7bUS$236.8bUS$16.6b24.8x43.7x3.1x
Sun, 07 Apr 2024US$763.7bUS$227.8bUS$13.8b25.6x55.2x3.4x
Tue, 05 Mar 2024US$824.1bUS$227.7bUS$14.3b22.8x57.6x3.6x
Thu, 01 Feb 2024US$838.7bUS$230.1bUS$13.4b22.7x62.8x3.6x
Sat, 30 Dec 2023US$799.4bUS$229.5bUS$12.8b20.7x62.4x3.5x
Mon, 27 Nov 2023US$737.5bUS$228.5bUS$12.7b20.6x58.1x3.2x
Wed, 25 Oct 2023US$632.1bUS$227.2bUS$6.5b18.4x97.7x2.8x
Fri, 22 Sep 2023US$667.7bUS$226.6bUS$6.8b23.6x98.5x2.9x
Sun, 20 Aug 2023US$650.0bUS$226.1bUS$6.5b20.6x99.3x2.9x
Tue, 18 Jul 2023US$696.9bUS$228.7bUS$6.1b25.7x114.4x3x
Thu, 15 Jun 2023US$690.6bUS$228.2bUS$5.9b24.3x116.6x3x
Sat, 13 May 2023US$615.5bUS$229.7bUS$6.5b23.5x94.6x2.7x
Mon, 10 Apr 2023US$589.8bUS$225.6bUS$2.5b23.3x239.8x2.6x
Wed, 08 Mar 2023US$2.0tUS$463.7bUS$22.5b26.6x87.3x4.2x
Fri, 03 Feb 2023US$2.1tUS$460.2bUS$40.1b28.6x52.6x4.6x
Price to Earnings Ratio

52.6x


Total Market Cap: US$2.1tTotal Earnings: US$40.1bTotal Revenue: US$460.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 69x202420252026
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 51.2x which is lower than its 3-year average PE of 69.0x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.0x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 21% per year over the last three years,
  • Revenues have also declined 18% 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 Market-0.36%
Tech-0.95%
IT-4.22%
Data Processing Services-2.18%
IT Consulting-2.81%
Internet Services and Infrastructure-5.81%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.1x.
    • Analysts are expecting annual earnings growth of 16.2%, which is lower than the prior year's growth of 25.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings growth rate of 24% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 9.7% 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
TWLO TwilioUS$133.9712.5%
+US$2.3b		-3.6%PE302.2x
NET CloudflareUS$189.352.8%
+US$1.8b		49.7%PS32.9x
GDS GDS HoldingsUS$46.6414.7%
+US$1.2b		119.6%PE55.8x
MDB MongoDBUS$411.252.9%
+US$935.2m		55.4%PS14.4x
AKAM Akamai TechnologiesUS$98.665.5%
+US$743.8m		-1.0%PE28x

Latest News

BBAI
US$5.72
BigBear.ai Holdings
7D
-6.5%
1Y
55.4%

BigBear.ai’s CargoSeer Technology Acquisition: Expanding Mission-Critical AI in Border Security, Trade Intelligence & Customs Enforcement

Author: Qudus Adebara (Founder of Wane Investment House) BigBear.ai Holdings, Inc. (NYSE: BBAI), a specialist in mission-ready artificial intelligence for national security and defense customers, has announced the acquisition of select technologies from CargoSeer, Ltd.
KC
US$13.34
Kingsoft Cloud Holdings
7D
12.1%
1Y
21.3%

KC: Higher Profitability Assumptions Will Support Future Upside Potential

Analysts have nudged their fair value estimate for Kingsoft Cloud Holdings slightly higher to US$18.14 from US$18.04, citing updated assumptions for discount rate, revenue growth, profit margin and future P/E expectations. What's in the News A board meeting is scheduled for November 19, 2025, to review and approve the unaudited third quarter results for Kingsoft Cloud Holdings, its subsidiaries, and consolidated affiliated entities for the three months ended September 30, 2025, and to consider their publication (Key Developments).
EPAM
US$220.44
EPAM Systems
7D
3.7%
1Y
-12.5%

EPAM: GenAI And M&A Progress Will Shape Fairly Valued Transition

Analysts have lifted their fair value estimate for EPAM Systems by about US$13 to roughly US$221, citing updated assumptions for revenue growth, discount rate, profit margin and future P/E that reflect gradual improvement in enterprise IT spending, a neutral stance from new coverage and interest in the company’s GenAI and M&A progress. Analyst Commentary Bullish Takeaways Bullish analysts see room for upside in EPAM Systems' valuation, with higher price targets that assume the shares can support a higher future P/E as conditions in IT services improve.
IT
US$236.58
Gartner
7D
2.6%
1Y
-55.9%

IT: Fair Outlook Balances Share Repurchases With Recent Impairment And Guidance

Analysts now set their fair value estimate for Gartner at $218, down from $225. This reflects updated assumptions for slightly higher discount rates, stronger revenue growth and profit margins, and a lower future P/E multiple.
DOCN
US$58.94
DigitalOcean Holdings
7D
11.7%
1Y
46.8%

DOCN: 2026 Software Rebound And AI Deals Will Drive Bullish Repricing

Analysts have raised their price target on DigitalOcean Holdings by US$14 to US$63, citing stable macro and IT spending, relatively low software valuations, and the stock's current out-of-favor status as key elements of their rationale. Analyst Commentary Recent Street research on DigitalOcean Holdings highlights a more constructive tone from bullish analysts, who are pointing to a combination of stock-specific and sector-wide factors as the basis for their updated views.
APLD
US$36.18
Applied Digital
7D
-3.3%
1Y
458.8%

APLD: Hyperscale Power Contracts Will Redefine Pure Play AI Infrastructure Narrative

Narrative Update: Applied Digital The analyst price target for Applied Digital has shifted from about US$24.00 to roughly US$56.11. Analysts point to recent bullish initiations, higher targets tied to strong hyperscale demand, progress at PF1 and PF2, and the company's positioning as a scalable AI infrastructure landlord as key drivers of the change.
NET
US$189.35
Cloudflare
7D
2.8%
1Y
49.7%

NET: AI Security Platform And JD Cloud Expansion Will Drive Future Upside

Cloudflare's updated fair value estimate has eased to about $232.78 from $242.46. This reflects a series of recent analyst price target trims that balance earlier optimism around AI, security and SASE traction with more cautious views on sector sentiment and valuation, and slightly lower assumed future P/E levels.
MDB
US$398.69
MongoDB
7D
-0.3%
1Y
50.7%

MDB: Atlas And AI Adoption Will Support Upcoming Leadership Transition

Analysts have modestly raised their implied outlook on MongoDB, with price targets now clustering in the US$405 to US$500 range. They cite stronger Atlas momentum, improving profitability, and confidence in the company’s AI positioning and new leadership.
WIX
US$89.73
Wix.com
7D
11.9%
1Y
-61.7%

WIX: Elevated AI Spending Will Reshape Margins Yet Support Long Term Upside

Analysts have trimmed their fair value estimate for Wix.com from US$160 to about US$115, as higher discount rate assumptions, lower projected profit margins linked to elevated AI and Base44 investment, and tempered revenue growth expectations now offset still supportive views on the company's future P/E and long term AI opportunity. Analyst Commentary Recent Street research on Wix.com has centered on how heavier AI and Base44 spending is reshaping the risk and reward profile, with several bearish analysts cutting price targets while still acknowledging long term potential in AI driven website building and related services.
TWLO
US$133.97
Twilio
7D
12.5%
1Y
-3.6%

TWLO: Improved Execution And Partnerships Are Expected To Support Stronger Future Returns

Twilio's updated fair value estimate has inched up to US$194.38 from US$192.44 as analysts incorporate slightly higher long term growth and margin assumptions, reflected in recent price target increases and more constructive post earnings commentary. Analyst Commentary Bullish analysts are framing the recent fair value move in the context of a more constructive view on Twilio's execution and longer term growth path, citing recent price target changes and post earnings commentary.
CRWV
US$98.31
CoreWeave
7D
-2.9%
1Y
n/a
IBM
US$296.33
International Business Machines
7D
-3.1%
1Y
32.2%

IBM: Quantum And Software Execution Will Drive Returns Through Workforce Shift

Analysts have nudged their fair value estimate for International Business Machines higher to about $302 from roughly $294, citing updated long term assumptions on revenue growth, profitability, and future P/E multiples that reflect recent price target moves and emerging views on quantum computing and software performance. Analyst Commentary Recent Street research on International Business Machines highlights a split view, with some analysts leaning into upside tied to quantum computing and recent acquisitions, while others focus on execution risks in core software and the timeline needed to support higher valuation multiples.
AKAM
US$98.66
Akamai Technologies
7D
5.5%
1Y
-1.0%

AKAM: Fair Outlook As Security And Compute Transition Reaches Key Inflection Point

Analysts have lifted their price target for Akamai Technologies by about US$6 to roughly US$101, citing a stronger profit outlook, a slightly lower required return, and growing conviction in the company’s transition toward security, compute, and AI infrastructure offerings. Analyst Commentary Recent Street research on Akamai highlights a mix of enthusiasm around its shift toward security, compute, and AI infrastructure, alongside some caution about the investment needed to support that shift.
SHOP
US$136.31
Shopify
7D
-12.5%
1Y
26.9%

SHOP: AI Monetization And Operating Leverage Will Support Measured Upside Into 2026

Analysts have nudged our implied fair value for Shopify to about US$179.49 per share, up roughly US$4 from the prior US$175.43. This reflects Street research that highlights stronger top line potential, rising AI related monetization and operating leverage, partially offset by more cautious views on valuation, margins and already high expectations.
ACN
US$280.71
Accenture
7D
-1.9%
1Y
-24.8%
KD
US$24.45
Kyndryl Holdings
7D
-3.0%
1Y
-35.5%

KD: Agentic AI Services Will Drive Future Upside

Analysts have maintained their fair value estimate for Kyndryl Holdings at $37.60, with only minor adjustments to discount rate, revenue growth, profit margin and future P/E assumptions. This suggests that their overall price target framework remains largely unchanged.