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U.S. IT Industry Analysis
UpdatedJul 20, 2025
DataAggregated Company Financials
Companies107
- 7D3.7%
- 3M31.0%
- 1Y30.5%
- YTD13.6%
The IT industry is up 3.7% in the last week, with Shopify up 13%. During this same period, the Gartner underperformed, falling 5.1%. This takes the industry's 12 month performance to a gain of 30%. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 21 Jul 2025 | US$1.0t | US$241.7b | US$17.3b | 28x | 57.9x | 4.2x |
| Wed, 18 Jun 2025 | US$998.7b | US$240.4b | US$17.1b | 28.7x | 58.5x | 4.2x |
| Fri, 16 May 2025 | US$928.8b | US$239.8b | US$17.0b | 32.6x | 54.8x | 3.9x |
| Sun, 13 Apr 2025 | US$808.0b | US$242.3b | US$18.5b | 32.5x | 43.8x | 3.3x |
| Tue, 11 Mar 2025 | US$917.2b | US$239.9b | US$18.3b | 43x | 50x | 3.8x |
| Thu, 06 Feb 2025 | US$987.9b | US$233.7b | US$16.3b | 44.9x | 60.7x | 4.2x |
| Sat, 04 Jan 2025 | US$858.6b | US$234.0b | US$16.5b | 49.1x | 52.2x | 3.7x |
| Mon, 02 Dec 2024 | US$894.5b | US$233.1b | US$16.3b | 45.2x | 55x | 3.8x |
| Wed, 30 Oct 2024 | US$793.0b | US$232.9b | US$15.7b | 41.8x | 50.4x | 3.4x |
| Fri, 27 Sep 2024 | US$788.1b | US$233.8b | US$17.8b | 40x | 44.2x | 3.4x |
| Sun, 25 Aug 2024 | US$752.0b | US$233.1b | US$17.4b | 34.1x | 43.1x | 3.2x |
| Tue, 23 Jul 2024 | US$739.1b | US$236.9b | US$17.2b | 30.7x | 43.1x | 3.1x |
| Thu, 20 Jun 2024 | US$681.9b | US$237.2b | US$17.3b | 26.6x | 39.5x | 2.9x |
| Sat, 18 May 2024 | US$720.1b | US$236.8b | US$17.3b | 25.3x | 41.7x | 3x |
| Mon, 15 Apr 2024 | US$735.8b | US$227.8b | US$13.7b | 25x | 53.5x | 3.2x |
| Wed, 13 Mar 2024 | US$802.3b | US$227.8b | US$14.3b | 23.2x | 55.9x | 3.5x |
| Fri, 09 Feb 2024 | US$824.3b | US$226.7b | US$13.1b | 22.3x | 62.9x | 3.6x |
| Sun, 07 Jan 2024 | US$758.6b | US$229.5b | US$12.8b | 20x | 59.1x | 3.3x |
| Tue, 05 Dec 2023 | US$761.8b | US$228.9b | US$12.7b | 21.5x | 59.8x | 3.3x |
| Thu, 02 Nov 2023 | US$632.7b | US$227.8b | US$11.4b | 19.5x | 55.5x | 2.8x |
| Sat, 30 Sep 2023 | US$657.2b | US$227.2b | US$6.5b | 24.3x | 101.6x | 2.9x |
| Mon, 28 Aug 2023 | US$674.4b | US$226.3b | US$6.6b | 21.2x | 101.9x | 3x |
| Wed, 26 Jul 2023 | US$699.1b | US$228.6b | US$6.2b | 25.3x | 112.7x | 3.1x |
| Fri, 23 Jun 2023 | US$675.0b | US$228.6b | US$6.1b | 23.4x | 109.9x | 3x |
| Sun, 21 May 2023 | US$639.0b | US$229.3b | US$5.2b | 21.8x | 123.6x | 2.8x |
| Tue, 18 Apr 2023 | US$594.4b | US$225.6b | US$2.5b | 23.8x | 241.6x | 2.6x |
| Thu, 16 Mar 2023 | US$1.9t | US$463.5b | US$22.5b | 23.8x | 83.2x | 4x |
| Sat, 11 Feb 2023 | US$2.0t | US$459.8b | US$40.7b | 26.8x | 50x | 4.4x |
| Mon, 09 Jan 2023 | US$1.9t | US$458.0b | US$39.2b | 27.3x | 49.5x | 4.2x |
| Wed, 07 Dec 2022 | US$1.9t | US$456.9b | US$39.0b | 28.6x | 49x | 4.2x |
| Fri, 04 Nov 2022 | US$1.8t | US$453.0b | US$37.5b | 26.1x | 48.9x | 4x |
| Sun, 02 Oct 2022 | US$1.8t | US$449.4b | US$41.7b | 25.2x | 42.3x | 3.9x |
| Tue, 30 Aug 2022 | US$2.0t | US$446.6b | US$41.6b | 28.7x | 48.3x | 4.5x |
| Thu, 28 Jul 2022 | US$2.0t | US$443.4b | US$47.9b | 29.2x | 41.8x | 4.5x |
Price to Earnings Ratio
41.8x
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 57.9x which is lower than its 3-year average PE of 68.2x.
- The 3-year average PS ratio of 3.5x is lower than the industry's current PS ratio of 4.2x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 29% 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 | 0.93% | |
| Tech | 2.46% | |
| IT | 3.67% | |
| Internet Services and Infrastructure | 8.05% | |
| Data Processing Services | 1.10% | |
| IT Consulting | 0.34% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry, which is trading close to its 3-year average PE ratio of 32.0x.
- Analysts are expecting annual earnings growth of 10.6%, which is higher than its past year's earnings growth of 7.7% 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 decline of 26% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 11% 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 | |
|---|---|---|---|---|---|
| SHOP Shopify | US$127.07 | 8.8% +US$13.4b | 102.7% | PE102.4x | |
| NET Cloudflare | US$197.35 | 7.9% +US$5.0b | 150.9% | PS38.6x | |
| IBM International Business Machines | US$285.87 | 0.7% +US$1.9b | 55.2% | PE48.4x | |
| TWLO Twilio | US$131.00 | 10.6% +US$1.9b | 125.8% | PS4.4x | |
| MDB MongoDB | US$221.21 | 9.8% +US$1.6b | -12.4% | PS8.6x |
