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

U.S. IT Industry Analysis

UpdatedJan 02, 2026
DataAggregated Company Financials
Companies129
  • 7D-7.0%
  • 3M-0.6%
  • 1Y15.1%
  • YTD0%

Over the last 7 days, the IT industry has dropped 7.0%, driven by a pullback from Shopify of 5.0%. This takes the industry's 12 month performance to a gain of 15%. 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
Fri, 02 Jan 2026US$1.1tUS$282.9bUS$20.9b29.9x51.3x3.8x
Sun, 30 Nov 2025US$1.1tUS$281.5bUS$20.9b28.1x51x3.8x
Tue, 28 Oct 2025US$1.1tUS$283.6bUS$22.0b30.1x51.5x4x
Thu, 25 Sep 2025US$1.0tUS$250.7bUS$19.4b31.9x52.9x4.1x
Sat, 23 Aug 2025US$932.5bUS$250.5bUS$19.3b30.8x48.4x3.7x
Mon, 21 Jul 2025US$1.0tUS$241.7bUS$17.3b28x57.9x4.2x
Wed, 18 Jun 2025US$998.7bUS$240.4bUS$17.1b28.7x58.5x4.2x
Fri, 16 May 2025US$928.8bUS$239.8bUS$17.0b32.6x54.8x3.9x
Sun, 13 Apr 2025US$808.0bUS$242.3bUS$18.5b32.5x43.8x3.3x
Tue, 11 Mar 2025US$917.2bUS$239.9bUS$18.3b43x50x3.8x
Thu, 06 Feb 2025US$987.9bUS$233.7bUS$16.3b44.9x60.7x4.2x
Sat, 04 Jan 2025US$858.6bUS$234.0bUS$16.5b49.1x52.2x3.7x
Mon, 02 Dec 2024US$894.5bUS$233.1bUS$16.3b45.2x55x3.8x
Wed, 30 Oct 2024US$793.0bUS$232.9bUS$15.7b41.8x50.4x3.4x
Fri, 27 Sep 2024US$788.1bUS$233.8bUS$17.8b40x44.2x3.4x
Sun, 25 Aug 2024US$752.0bUS$233.1bUS$17.4b34.1x43.1x3.2x
Tue, 23 Jul 2024US$739.1bUS$236.9bUS$17.2b30.7x43.1x3.1x
Thu, 20 Jun 2024US$681.9bUS$237.2bUS$17.3b26.6x39.5x2.9x
Sat, 18 May 2024US$720.1bUS$236.8bUS$17.3b25.3x41.7x3x
Mon, 15 Apr 2024US$735.8bUS$227.8bUS$13.7b25x53.5x3.2x
Wed, 13 Mar 2024US$802.3bUS$227.8bUS$14.3b23.2x55.9x3.5x
Fri, 09 Feb 2024US$824.3bUS$226.7bUS$13.1b22.3x62.9x3.6x
Sun, 07 Jan 2024US$758.6bUS$229.5bUS$12.8b20x59.1x3.3x
Tue, 05 Dec 2023US$761.8bUS$228.9bUS$12.7b21.5x59.8x3.3x
Thu, 02 Nov 2023US$632.7bUS$227.8bUS$11.4b19.5x55.5x2.8x
Sat, 30 Sep 2023US$657.2bUS$227.2bUS$6.5b24.3x101.6x2.9x
Mon, 28 Aug 2023US$674.4bUS$226.3bUS$6.6b21.2x101.9x3x
Wed, 26 Jul 2023US$699.1bUS$228.6bUS$6.2b25.3x112.7x3.1x
Fri, 23 Jun 2023US$675.0bUS$228.6bUS$6.1b23.4x109.9x3x
Sun, 21 May 2023US$639.0bUS$229.3bUS$5.2b21.8x123.6x2.8x
Tue, 18 Apr 2023US$594.4bUS$225.6bUS$2.5b23.8x241.6x2.6x
Thu, 16 Mar 2023US$1.9tUS$463.5bUS$22.5b23.8x83.2x4x
Sat, 11 Feb 2023US$2.0tUS$459.8bUS$40.7b26.8x50x4.4x
Mon, 09 Jan 2023US$1.9tUS$458.0bUS$39.2b27.3x49.5x4.2x
Price to Earnings Ratio

49.5x


Total Market Cap: US$1.9tTotal Earnings: US$39.2bTotal Revenue: US$458.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.9x202420252026
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 51.3x which is lower than its 3-year average PE of 68.9x.
  • The industry is trading close to its 3-year average PS ratio of 3.5x.
Past Earnings Growth
  • The earnings for companies in the IT industry have declined 19% per year over the last three years,
  • Revenues have also declined 15% 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-1.43%
Tech-1.88%
IT-6.96%
IT Consulting-1.64%
Data Processing Services-1.91%
Internet Services and Infrastructure-12.43%
Industry PE
  • Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 31.0x.
    • Analysts are expecting annual earnings growth of 9.3%, which is lower than the prior year's growth of 19.4% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 29% 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 9.3% 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$142.241.3%
+US$269.9m		25.8%PE320.8x
APLD Applied DigitalUS$24.522.0%
+US$134.2m		169.2%PS40.3x
VTEX VTEXUS$3.761.3%
+US$8.9m		-35.2%PE50.9x
RPGL Republic Power GroupUS$0.56112.7%
+US$5.1m		n/aPE34.4x
BNAI Brand Engagement NetworkUS$2.3293.3%
+US$5.0m		-76.1%PS138.6x

Latest News

SNOW
US$219.36
Snowflake
7D
-2.0%
1Y
35.2%
TWLO
US$142.24
Twilio
7D
1.3%
1Y
25.8%
CISO
US$0.48
CISO Global
7D
9.1%
1Y
-82.7%
BNAI
US$2.32
Brand Engagement Network
7D
93.3%
1Y
-76.1%
ACN
US$268.30
Accenture
7D
-1.0%
1Y
-24.2%
APLD
US$24.52
Applied Digital
7D
2.0%
1Y
169.2%

APLD: Long-Term Hyperscale Power Access Will Drive Future AI Leasing Demand

Analysts have lifted their average price target on Applied Digital to about $40 from roughly $23, citing the validation of its hyperscale data center strategy through the $11B CoreWeave contract, stronger than expected Q1 results, and a growing multi-gigawatt AI infrastructure pipeline supported by robust financing. Analyst Commentary Bullish analysts emphasize that Applied Digital is emerging as a key beneficiary of the accelerating shift toward AI infrastructure, with recent sector transactions underscoring the strategic value of power access and scalable data center capacity.
VTEX
US$3.76
VTEX
7D
1.3%
1Y
-35.2%

VTEX: Cost Discipline And Free Cash Flow Progress Will Drive Upside Potential

Analysts have trimmed their price target on VTEX to approximately $5.00 per share from around $6.00, citing slower expected revenue growth along with improved margin and free cash flow prospects that they believe still support a favorable risk reward profile. Analyst Commentary Recent Street research highlights a more mixed backdrop for VTEX, as investors weigh improved profitability against slowing top line expectations.
MDB
US$419.69
MongoDB
7D
-3.7%
1Y
70.3%

MongoDB, Inc.'s (NASDAQ:MDB) 26% Share Price Surge Not Quite Adding Up

Dec 19
MongoDB, Inc.'s (NASDAQ:MDB) 26% Share Price Surge Not Quite Adding Up
SHOP
US$160.97
Shopify
7D
-5.8%
1Y
47.3%

SHOP: AI Partnerships And Margin Expansion Will Drive Measured Upside Into 2025

Analysts have nudged our Shopify price target higher to approximately $175, up modestly from about $170. This reflects slightly faster expected profit margin expansion and durable post Q3 growth momentum that they believe supports the stock's premium valuation.
IBM
US$296.21
International Business Machines
7D
-2.9%
1Y
33.0%

IBM: Quantum Optionality And Software Execution Will Drive Returns Amid Workforce Shift

Analysts have nudged their fair value estimate for International Business Machines slightly higher, lifting the price target by about $3 to reflect steady core software execution, improving long term quantum revenue optionality, and modestly richer earnings multiples, despite only incremental changes to growth and margin assumptions. Analyst Commentary Recent Street research presents a mixed but generally constructive view on IBM, with several bullish analysts lifting price targets on the back of solid execution in software, consulting, and emerging quantum capabilities, while more cautious voices point to valuation and growth hurdles that still need to be cleared.
NET
US$197.15
Cloudflare
7D
-2.6%
1Y
71.8%

NET: Elevated Expectations Will Likely Amplify Downside Risk From Future Outages

The analyst price target for Cloudflare has been raised from approximately $116 to about $135 per share, as analysts point to accelerating revenue growth, strong Q3 execution, and Cloudflare's strengthening position across AI, security, and SASE as key drivers supporting a higher fair value, despite modestly higher risk assumptions. Analyst Commentary Street research following Cloudflare's latest quarterly report has skewed positive, with multiple firms lifting price targets on the back of accelerating revenue growth and stronger than expected execution.
CTSH
US$83.00
Cognizant Technology Solutions
7D
-3.0%
1Y
8.7%
CRWV
US$71.61
CoreWeave
7D
-6.3%
1Y
n/a
MASK
US$0.24
3 E Network Technology Group
7D
31.5%
1Y
n/a
VRAR
US$0.93
Glimpse Group
7D
13.8%
1Y
-66.8%
RPGL
US$0.56
Republic Power Group
7D
112.7%
1Y
n/a