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

U.S. IT Industry Analysis

UpdatedSep 11, 2025
DataAggregated Company Financials
Companies108
  • 7D2.3%
  • 3M-4.0%
  • 1Y17.1%
  • YTD7.4%

CoreWeave is up 30%, leading the way for the IT industry, which has gained 2.3%. This takes the industry's 12 month performance to a gain of 17%. 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
Thu, 11 Sep 2025US$997.9bUS$250.9bUS$19.3b28.9x51.7x4x
Sat, 09 Aug 2025US$978.9bUS$249.4bUS$19.5b28.8x50.3x3.9x
Mon, 07 Jul 2025US$1.0tUS$241.7bUS$17.4b29.5x59.3x4.3x
Wed, 04 Jun 2025US$958.0bUS$240.3bUS$17.0b29.3x56.2x4x
Fri, 02 May 2025US$855.9bUS$242.7bUS$18.1b31.5x47.3x3.5x
Sun, 30 Mar 2025US$864.9bUS$242.4bUS$18.4b35.6x46.9x3.6x
Tue, 25 Feb 2025US$975.9bUS$239.7bUS$18.2b40.2x53.7x4.1x
Thu, 23 Jan 2025US$883.8bUS$234.1bUS$16.3b41.7x54.2x3.8x
Sat, 21 Dec 2024US$877.7bUS$234.7bUS$16.7b44.3x52.6x3.7x
Mon, 18 Nov 2024US$827.3bUS$232.8bUS$16.3b45.6x50.6x3.6x
Wed, 16 Oct 2024US$826.9bUS$232.8bUS$17.8b44.7x46.5x3.6x
Fri, 13 Sep 2024US$765.7bUS$233.3bUS$17.5b35.5x43.6x3.3x
Sun, 11 Aug 2024US$721.4bUS$232.7bUS$17.5b28.5x41.2x3.1x
Tue, 09 Jul 2024US$718.8bUS$236.9bUS$17.2b27x41.8x3x
Thu, 06 Jun 2024US$674.7bUS$237.2bUS$17.3b28.3x39.1x2.8x
Sat, 04 May 2024US$725.4bUS$236.9bUS$16.0b23.7x45.2x3.1x
Mon, 01 Apr 2024US$783.3bUS$227.8bUS$13.8b24.5x56.6x3.4x
Wed, 28 Feb 2024US$828.8bUS$227.4bUS$14.2b22.1x58.4x3.6x
Fri, 26 Jan 2024US$819.8bUS$230.1bUS$13.4b23.3x61.4x3.6x
Sun, 24 Dec 2023US$791.8bUS$229.5bUS$12.8b20.8x61.8x3.4x
Tue, 21 Nov 2023US$722.2bUS$228.5bUS$12.7b20.9x56.9x3.2x
Thu, 19 Oct 2023US$654.7bUS$227.2bUS$6.5b19.9x101.2x2.9x
Sat, 16 Sep 2023US$693.9bUS$226.6bUS$6.8b23x102.2x3.1x
Mon, 14 Aug 2023US$665.1bUS$226.3bUS$6.7b22.8x99.6x2.9x
Wed, 12 Jul 2023US$681.2bUS$228.6bUS$6.1b25x111.8x3x
Fri, 09 Jun 2023US$664.9bUS$228.3bUS$5.9b24.3x112.2x2.9x
Sun, 07 May 2023US$604.1bUS$232.7bUS$5.8b23.4x103.3x2.6x
Tue, 04 Apr 2023US$604.0bUS$225.6bUS$2.4b22.3x252.7x2.7x
Thu, 02 Mar 2023US$1.9tUS$463.2bUS$22.4b26.4x86.3x4.2x
Sat, 28 Jan 2023US$2.0tUS$460.1bUS$40.0b27.8x51.1x4.4x
Mon, 26 Dec 2022US$1.9tUS$457.9bUS$39.2b27.9x47.5x4.1x
Wed, 23 Nov 2022US$1.9tUS$456.1bUS$39.2b28.4x49.2x4.2x
Fri, 21 Oct 2022US$1.8tUS$450.4bUS$38.1b27.5x47.4x4x
Sun, 18 Sep 2022US$1.9tUS$447.0bUS$41.4b27x46.3x4.3x
Price to Earnings Ratio

46.3x


Total Market Cap: US$1.9tTotal Earnings: US$41.4bTotal Revenue: US$447.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.4x202320242025
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 51.7x which is lower than its 3-year average PE of 68.4x.
  • 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 22% 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 Market1.37%
Tech2.87%
IT2.33%
Internet Services and Infrastructure4.66%
IT Consulting0.049%
Data Processing Services-0.46%
Industry PE
  • Investors are most optimistic about the Internet Services and Infrastructure industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 27.4%, which is higher than its past year's earnings growth of 9.7% per year.
  • Investors are most pessimistic about the IT Consulting industry, which is trading below its 3-year average of 31.8x.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 9.7% 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?

CompanyLast Price7D1YValuation
CRWV CoreWeaveUS$117.1430.3%
+US$14.1b		n/aPS17.2x
IBM International Business MachinesUS$256.885.2%
+US$11.9b		22.4%PE40.8x
NET CloudflareUS$222.978.4%
+US$6.0b		183.8%PS41.3x
SHOP ShopifyUS$142.201.4%
+US$2.6b		98.8%PE78.8x
MDB MongoDBUS$334.877.0%
+US$1.8b		12.9%PS12.3x

Latest News

DAVA
US$9.40
Endava
7D
-34.6%
1Y
-71.2%
TWLO
US$104.25
Twilio
7D
-0.9%
1Y
76.9%
EPAM
US$153.10
EPAM Systems
7D
-12.0%
1Y
-24.8%

Enterprise AI Adoption Will Transform Cloud Migration And Data Engineering

Analysts have modestly lowered EPAM’s price target amid sector-wide caution and macroeconomic uncertainty, balanced by recognition of its undervalued status and improving growth outlook, resulting in a minor decrease in fair value from $213.31 to $211.12. Analyst Commentary Bullish analysts see EPAM’s current valuation as undervalued, with the stock reflecting minimal credit for its recovering growth and successful global delivery reorganization.
WIX
US$164.04
Wix.com
7D
11.5%
1Y
6.7%

Wix.com Ltd. (NASDAQ:WIX) Looks Just Right With A 36% Price Jump

Sep 10
Wix.com Ltd. (NASDAQ:WIX) Looks Just Right With A 36% Price Jump
IT
US$232.59
Gartner
7D
-6.1%
1Y
-53.5%

Enterprise AI Adoption Will Drive Expansion While Risks Will Persist

The slight downward revision in Gartner's consensus analyst price target to $300.60 primarily reflects marginally lower revenue growth expectations, with all key valuation inputs remaining effectively unchanged. What's in the News Repurchased 1,081,245 shares for $438.77 million, completing 24.24% of the $4.95 billion buyback plan since 2015.
ACN
US$243.11
Accenture
7D
-4.3%
1Y
-30.6%
APLD
US$16.98
Applied Digital
7D
18.1%
1Y
189.3%
NET
US$222.97
Cloudflare
7D
8.4%
1Y
183.8%
VRSN
US$283.48
VeriSign
7D
3.4%
1Y
55.7%

New Domain Initiatives And Dividends Will Face Web Hurdles

With no material changes in revenue growth forecasts or discount rates, analyst valuation for VeriSign remains steady, reflected in an unchanged consensus price target of $309. What's in the News VeriSign completed a $1.2255 billion follow-on equity offering for 4.3 million shares at $285 per share with a $2.85 discount.
CRWV
US$117.14
CoreWeave
7D
30.3%
1Y
n/a
SHOP
US$142.20
Shopify
7D
1.4%
1Y
98.8%
GLOB
US$57.15
Globant
7D
-10.8%
1Y
-71.6%

Enterprise AI And Cloud Migration Will Shape Future Markets

Globant’s consensus price target was trimmed from $109.45 to $106.45 as analysts cite macroeconomic uncertainty, slower client decision-making, reduced fiscal 2025 guidance, and ongoing sector headwinds, partially offset by continued margin strength and long-term AI opportunities. Analyst Commentary Macroeconomic uncertainty and delayed client decision-making are negatively impacting near-term revenue expectations and growth visibility.
MDB
US$334.87
MongoDB
7D
7.0%
1Y
12.9%

Revenues Not Telling The Story For MongoDB, Inc. (NASDAQ:MDB) After Shares Rise 32%

Aug 29
Revenues Not Telling The Story For MongoDB, Inc. (NASDAQ:MDB) After Shares Rise 32%
GDS
US$33.50
GDS Holdings
7D
-1.9%
1Y
101.7%

900MW Land In China Will Expand AI Data Centers

GDS Holdings’ consensus price target has increased to $47.25 as analysts cite improved balance sheet strength from asset-backed deals and a REIT IPO, anticipated dual-primary listing in Hong Kong, and resumed high-end chip shipments in China as catalysts for higher valuation and growth. Analyst Commentary Bullish analysts cite improved valuation and balance sheet strength following asset-backed securities deals and a commercial real estate investment trust (C-REIT) IPO, which reduced net debt.
CTSH
US$69.16
Cognizant Technology Solutions
7D
-3.7%
1Y
-9.4%

AI-driven Consulting And Transformation Will Open Financial And Health Opportunities

Analysts have modestly reduced their price target for Cognizant Technology Solutions from $87.63 to $86.63, citing sector underperformance, over-optimism, and macroeconomic uncertainty driving a more cautious, neutral outlook. Analyst Commentary Analysts note that the payments, processors, and IT services industries have materially underperformed the S&P 500 Index year-to-date due to elevated investor expectations ahead of the U.S. November election.
IBM
US$256.88
International Business Machines
7D
5.2%
1Y
22.4%

Estimating The Intrinsic Value Of International Business Machines Corporation (NYSE:IBM)

Aug 20
Estimating The Intrinsic Value Of International Business Machines Corporation (NYSE:IBM)