Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. IT Industry Analysis

UpdatedJun 03, 2026
DataAggregated Company Financials
Companies117
  • 7D20.6%
  • 3M21.6%
  • 1Y8.6%
  • YTD2.9%

Over the last 7 days, the IT industry has risen 21%, driven by gains from International Business Machines of 31%. This takes the industry's 12 month performance to a gain of 8.6%. As for the next few years, earnings are expected to grow by 21% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 04 Jun 2026US$1.1tUS$259.5bUS$20.1b20.6x53.4x4.1x
Sat, 02 May 2026US$830.1bUS$261.7bUS$21.8b21x38.1x3.2x
Mon, 30 Mar 2026US$814.8bUS$259.6bUS$21.6b19.3x37.8x3.1x
Wed, 25 Feb 2026US$811.9bUS$256.7bUS$21.7b20.1x37.5x3.2x
Fri, 23 Jan 2026US$1.0tUS$252.7bUS$19.8b27.8x51.2x4x
Sun, 21 Dec 2025US$1.1tUS$282.7bUS$20.9b29.8x52.5x3.9x
Tue, 18 Nov 2025US$1.0tUS$281.4bUS$20.8b26.9x50.4x3.7x
Thu, 16 Oct 2025US$1.1tUS$282.6bUS$20.0b32.7x53.6x3.8x
Sat, 13 Sep 2025US$1.0tUS$250.9bUS$19.3b29x51.9x4x
Mon, 11 Aug 2025US$958.2bUS$249.4bUS$19.5b28.8x49.2x3.8x
Wed, 09 Jul 2025US$1.0tUS$241.7bUS$17.3b29.7x59.1x4.2x
Fri, 06 Jun 2025US$979.9bUS$240.5bUS$17.1b29.2x57.4x4.1x
Sun, 04 May 2025US$857.7bUS$238.4bUS$17.0b36.3x50.4x3.6x
Tue, 01 Apr 2025US$864.9bUS$242.4bUS$18.4b35.1x46.9x3.6x
Thu, 27 Feb 2025US$955.7bUS$239.7bUS$18.2b39.6x52.6x4x
Sat, 25 Jan 2025US$892.4bUS$234.1bUS$16.3b43.5x54.7x3.8x
Mon, 23 Dec 2024US$880.0bUS$234.7bUS$16.7b40.9x52.7x3.7x
Wed, 20 Nov 2024US$826.9bUS$232.8bUS$16.4b44.8x50.5x3.6x
Fri, 18 Oct 2024US$828.0bUS$232.8bUS$17.8b46.6x46.6x3.6x
Sun, 15 Sep 2024US$773.2bUS$233.3bUS$17.5b35.5x44.1x3.3x
Tue, 13 Aug 2024US$721.4bUS$232.7bUS$17.5b30.6x41.2x3.1x
Thu, 11 Jul 2024US$711.2bUS$236.9bUS$17.2b26.6x41.4x3x
Sat, 08 Jun 2024US$681.1bUS$237.2bUS$17.3b26.8x39.5x2.9x
Mon, 06 May 2024US$728.5bUS$236.9bUS$16.0b23.7x45.4x3.1x
Wed, 03 Apr 2024US$777.1bUS$227.8bUS$13.8b25.9x56.2x3.4x
Fri, 01 Mar 2024US$826.5bUS$227.7bUS$14.3b21.3x57.7x3.6x
Sun, 28 Jan 2024US$832.2bUS$230.1bUS$13.4b23.3x62.3x3.6x
Tue, 26 Dec 2023US$791.8bUS$229.5bUS$12.8b20.8x61.8x3.4x
Thu, 23 Nov 2023US$726.4bUS$228.5bUS$12.7b20.7x57.2x3.2x
Sat, 21 Oct 2023US$637.1bUS$227.2bUS$6.5b18.8x98.5x2.8x
Mon, 18 Sep 2023US$689.0bUS$226.6bUS$6.8b23.7x101.5x3x
Wed, 16 Aug 2023US$661.5bUS$226.0bUS$6.6b22x100.5x2.9x
Fri, 14 Jul 2023US$703.3bUS$228.7bUS$6.1b25.9x115.5x3.1x
Sun, 11 Jun 2023US$668.6bUS$228.2bUS$5.9b23.1x113x2.9x
Price to Earnings Ratio

113x


Total Market Cap: US$668.6bTotal Earnings: US$5.9bTotal Revenue: US$228.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 57.6x202420252026
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 53.4x which is lower than its 3-year average PE of 57.7x.
  • The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.1x.
Past Earnings Growth
  • The earnings for companies in the IT industry have grown 50% per year over the last three years.
  • Revenues for these companies have grown 4.4% 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 Market1.22%
Tech6.93%
IT20.58%
Internet Services and Infrastructure20.67%
IT Consulting20.47%
Data Processing Services0.65%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.7x.
    • Analysts are expecting annual earnings growth of 13.6%, which is lower than the prior year's growth of 25.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% over the next 5 years.
  • However this is lower than its past earnings growth rate of 88% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 7.7% 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
IBM International Business MachinesUS$305.6319.8%
+US$47.4b		15.1%PE26.8x
SNOW SnowflakeUS$241.2837.7%
+US$23.1b		15.1%PS16.6x
NET CloudflareUS$265.3326.8%
+US$19.8b		55.2%PS40.3x
SHOP ShopifyUS$112.945.9%
+US$8.2b		9.0%PE110.3x
TWLO TwilioUS$227.2625.2%
+US$6.9b		89.6%PE331.8x

Latest News

SNOW
US$241.28
Snowflake
7D
37.7%
1Y
15.1%
OKTA
US$124.65
Okta
7D
39.3%
1Y
18.0%
VNET
US$10.33
VNET Group
7D
-3.5%
1Y
77.5%
CRWV
US$110.93
CoreWeave
7D
6.4%
1Y
-32.0%
Seeking Alpha • 20h

CoreWeave: Valuation Remains Compelling Relative To Growth Prospects

Summary CoreWeave continues to exhibit hyper-growth, with Q1 revenue up 112% YoY and backlog surging 284% to $99.4 billion. Despite temporary margin weakness, CoreWeave's aggressive scaling and CapEx are justified by robust demand and record bookings. Financial leverage remains a key risk, with a debt/equity ratio of 10.7 and a likely need for further capital raises as CapEx guidance increases. I reiterate my strong buy rating, as the forward P/S of 5.3 remains attractive given growth, differentiation efforts, and sustained AI demand. Read the full article on Seeking Alpha
IBM
US$305.63
International Business Machines
7D
19.8%
1Y
15.1%
Narrative Update • Jun 02

IBM: Quantum And AI Hype Will Outrun Execution And Margin Delivery

Analyst fair value for International Business Machines has been reset from $201.51 to $195.00 as analysts balance recent price target moves around $350 with updated assumptions for discount rate, modestly higher revenue growth, slightly stronger profit margins, and a lower future P/E. Analyst Commentary Recent Street research on International Business Machines highlights a split view.
TWLO
US$227.26
Twilio
7D
25.2%
1Y
89.6%
Seeking Alpha • Jun 02

Twilio: Why The Steep AI Premium Isn't Justified (Rating Downgrade)

Summary Twilio (TWLO) has delivered accelerating growth and profitability, driven by AI adoption, but now trades at a significant premium to software peers. TWLO posted 20% YoY revenue growth, 50% gross margins, and 200 bps non-GAAP margin expansion, with management raising full-year growth guidance to 15%. Despite strong results, TWLO's valuation—33x this year’s earnings and 11x 2033e earnings—appears unjustified relative to peers with similar or better growth. I downgrade TWLO to a sell rating, citing lack of margin of safety and risk of multiple compression as AI-driven growth may prove cyclical. Read the full article on Seeking Alpha
SHOP
US$112.94
Shopify
7D
5.9%
1Y
9.0%
GDDY
US$83.98
GoDaddy
7D
-3.9%
1Y
-53.9%
Narrative Update • Jun 02

GDDY: AI Agent Standards And Tools Will Support Future Margin Expansion

The analyst price target for GoDaddy has been reduced by about $5. This change reflects a slightly higher long-term growth and margin outlook, offset by lower assumed future P/E multiples and a series of Neutral ratings and target cuts from firms that have recently updated their coverage.
NET
US$265.33
Cloudflare
7D
26.8%
1Y
55.2%
MDB
US$368.32
MongoDB
7D
25.1%
1Y
84.4%
WYFI
US$28.03
WhiteFiber
7D
-11.2%
1Y
n/a
APLD
US$44.71
Applied Digital
7D
-8.7%
1Y
237.4%
KC
US$12.74
Kingsoft Cloud Holdings
7D
-2.9%
1Y
11.0%
EPAM
US$97.28
EPAM Systems
7D
-4.3%
1Y
-44.6%
Narrative Update • May 28

EPAM: AI Partnerships And Buybacks Will Balance Execution And Margin Uncertainty

Analysts have reduced their fair value estimate for EPAM Systems to $110 from $140, reflecting a series of recent price target cuts and a shift to using a lower future P/E assumption. Views on profit margin potential, however, remain slightly more constructive.
AIAI
US$12.99
AIAI Holdings
7D
-6.4%
1Y
n/a
MGRT
US$74.77
Mega Fortune
7D
-11.6%
1Y
n/a