Why We Like The Returns At Gartner (NYSE:IT)
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U.S. IT Industry Analysis
UpdatedJul 31, 2025
DataAggregated Company Financials
Companies105
- 7D-3.7%
- 3M13.5%
- 1Y23.7%
- YTD8.4%
Over the last 7 days, the IT industry has dropped 2.8%, driven by International Business Machines declining 7.7%. Meanwhile, Cloudflare actually outperformed within the industry, gaining 6.2% in the last week. This takes the industry's 12 month performance to a gain of 26%. Earnings are forecast to grow by 19% annually.
Industry Valuation and Performance
Has the U.S. IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 31 Jul 2025 | US$971.9b | US$242.9b | US$17.7b | 26.7x | 54.9x | 4x |
| Sat, 28 Jun 2025 | US$1.0t | US$241.7b | US$17.4b | 28.9x | 58.3x | 4.2x |
| Mon, 26 May 2025 | US$930.5b | US$240.2b | US$16.9b | 29x | 54.9x | 3.9x |
| Wed, 23 Apr 2025 | US$786.6b | US$242.3b | US$18.5b | 32.6x | 42.5x | 3.2x |
| Fri, 21 Mar 2025 | US$888.3b | US$240.9b | US$19.2b | 43.9x | 46.2x | 3.7x |
| Sun, 16 Feb 2025 | US$1.0t | US$239.4b | US$18.2b | 44.8x | 57x | 4.3x |
| Tue, 14 Jan 2025 | US$855.5b | US$234.0b | US$16.5b | 37.4x | 52x | 3.7x |
| Thu, 12 Dec 2024 | US$899.4b | US$233.3b | US$16.4b | 45x | 54.9x | 3.9x |
| Sat, 09 Nov 2024 | US$820.1b | US$233.2b | US$16.1b | 46.9x | 50.9x | 3.5x |
| Mon, 07 Oct 2024 | US$806.1b | US$232.9b | US$17.8b | 43.3x | 45.4x | 3.5x |
| Wed, 04 Sep 2024 | US$761.2b | US$233.2b | US$17.5b | 38.4x | 43.4x | 3.3x |
| Fri, 02 Aug 2024 | US$751.2b | US$236.7b | US$17.7b | 29.2x | 42.5x | 3.2x |
| Sun, 30 Jun 2024 | US$710.2b | US$237.1b | US$17.2b | 27.9x | 41.3x | 3x |
| Tue, 28 May 2024 | US$707.2b | US$237.0b | US$17.2b | 28.2x | 41x | 3x |
| Thu, 25 Apr 2024 | US$734.3b | US$227.8b | US$13.7b | 24.2x | 53.4x | 3.2x |
| Sat, 23 Mar 2024 | US$776.8b | US$227.6b | US$14.6b | 22.3x | 53.3x | 3.4x |
| Mon, 19 Feb 2024 | US$831.3b | US$227.5b | US$14.2b | 23.4x | 58.5x | 3.7x |
| Wed, 17 Jan 2024 | US$799.2b | US$229.4b | US$12.9b | 21x | 61.8x | 3.5x |
| Fri, 15 Dec 2023 | US$778.2b | US$229.0b | US$12.8b | 20.3x | 60.8x | 3.4x |
| Sun, 12 Nov 2023 | US$685.6b | US$228.4b | US$12.6b | 20.9x | 54.2x | 3x |
| Tue, 10 Oct 2023 | US$670.6b | US$227.2b | US$6.5b | 22.4x | 103.7x | 3x |
| Thu, 07 Sep 2023 | US$706.9b | US$226.6b | US$6.8b | 23.1x | 103.9x | 3.1x |
| Sat, 05 Aug 2023 | US$680.8b | US$226.3b | US$6.4b | 24x | 106.1x | 3x |
| Mon, 03 Jul 2023 | US$679.5b | US$228.6b | US$6.1b | 23.6x | 111.5x | 3x |
| Wed, 31 May 2023 | US$655.3b | US$228.0b | US$5.8b | 23.7x | 113.9x | 2.9x |
| Fri, 28 Apr 2023 | US$581.3b | US$225.6b | US$2.7b | 21.2x | 212.9x | 2.6x |
| Sun, 26 Mar 2023 | US$572.2b | US$225.5b | US$2.3b | 22.6x | 245x | 2.5x |
| Tue, 21 Feb 2023 | US$2.0t | US$462.1b | US$22.5b | 28.4x | 89.1x | 4.3x |
| Thu, 19 Jan 2023 | US$2.0t | US$458.0b | US$39.1b | 28.7x | 50.5x | 4.3x |
| Sat, 17 Dec 2022 | US$1.9t | US$456.9b | US$39.0b | 27.6x | 48.1x | 4.1x |
| Mon, 14 Nov 2022 | US$1.9t | US$455.9b | US$37.9b | 28.6x | 51.4x | 4.3x |
| Wed, 12 Oct 2022 | US$1.7t | US$449.5b | US$41.7b | 25.9x | 41.8x | 3.9x |
| Fri, 09 Sep 2022 | US$2.0t | US$446.7b | US$41.4b | 28.6x | 48x | 4.4x |
| Sun, 07 Aug 2022 | US$2.1t | US$444.5b | US$42.2b | 29.5x | 49.9x | 4.7x |
Price to Earnings Ratio
49.9x
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 55.2x which is lower than its 3-year average PE of 68.3x.
- 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 25% 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 | -0.35% | |
| Tech | 1.56% | |
| IT | -3.72% | |
| Data Processing Services | -0.61% | |
| Internet Services and Infrastructure | -0.96% | |
| IT Consulting | -5.92% | |
Industry PE
- Investors are most optimistic about the Data Processing Services industry, which is trading close to its 3-year average PE ratio of 29.8x.
- Analysts expect its future annual earnings growth (14.0%) to be largely in line with prior year's earnings growth.
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 decline of 26% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 10% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NET Cloudflare | US$200.85 | 6.2% +US$4.1b | 159.2% | PS39.3x | |
| SNOW Snowflake | US$220.28 | 3.6% +US$2.6b | 69.0% | PS19.1x | |
| MDB MongoDB | US$244.36 | 7.1% +US$1.3b | -3.2% | PS9.5x | |
| SHOP Shopify | US$123.01 | 0.7% +US$1.0b | 101.0% | PE99.1x | |
| OKTA Okta | US$99.77 | 4.3% +US$724.8m | 6.2% | PE134.4x |
