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U.S. IT Industry Analysis

UpdatedOct 01, 2025
DataAggregated Company Financials
Companies114
  • 7D2.1%
  • 3M-2.6%
  • 1Y18.4%
  • YTD14.0%

In the last week, the IT industry is up 2.1%, with International Business Machines up 7.1%. In the same time, Wix.com was down 15%. This means that the industry has gained 18% over the past year. Earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 02 Oct 2025US$1.0tUS$251.9bUS$19.1b30.8x53.9x4.1x
Sat, 30 Aug 2025US$990.0bUS$250.9bUS$19.3b31.7x51.3x3.9x
Mon, 28 Jul 2025US$978.8bUS$242.9bUS$17.7b27.7x55.3x4x
Wed, 25 Jun 2025US$1.0tUS$241.7bUS$17.4b29.4x58.9x4.2x
Fri, 23 May 2025US$935.2bUS$240.2bUS$16.9b30x55.2x3.9x
Sun, 20 Apr 2025US$804.6bUS$242.4bUS$18.5b33.9x43.5x3.3x
Tue, 18 Mar 2025US$871.0bUS$240.0bUS$18.7b45.3x46.7x3.6x
Thu, 13 Feb 2025US$997.8bUS$234.8bUS$16.9b50.7x59x4.2x
Sat, 11 Jan 2025US$873.6bUS$234.0bUS$16.5b38.9x53.1x3.7x
Mon, 09 Dec 2024US$922.3bUS$233.2bUS$16.4b48.2x56.3x4x
Wed, 06 Nov 2024US$772.0bUS$233.3bUS$16.2b44.5x47.8x3.3x
Fri, 04 Oct 2024US$787.5bUS$232.9bUS$17.8b42.2x44.4x3.4x
Sun, 01 Sep 2024US$761.2bUS$233.3bUS$17.5b38.4x43.4x3.3x
Tue, 30 Jul 2024US$743.4bUS$237.1bUS$17.4b29.2x42.8x3.1x
Thu, 27 Jun 2024US$703.0bUS$237.1bUS$17.2b27x40.9x3x
Sat, 25 May 2024US$712.0bUS$237.0bUS$17.2b28.1x41.3x3x
Mon, 22 Apr 2024US$719.3bUS$227.7bUS$13.7b24x52.3x3.2x
Wed, 20 Mar 2024US$804.6bUS$227.7bUS$14.4b22.4x56x3.5x
Fri, 16 Feb 2024US$834.9bUS$227.3bUS$14.4b23.5x57.8x3.7x
Sun, 14 Jan 2024US$799.2bUS$229.4bUS$12.9b20.7x61.8x3.5x
Tue, 12 Dec 2023US$768.5bUS$229.0bUS$12.8b21.4x60x3.4x
Thu, 09 Nov 2023US$688.5bUS$228.2bUS$12.3b21.1x56x3x
Sat, 07 Oct 2023US$668.4bUS$227.2bUS$6.5b22.3x103.3x2.9x
Mon, 04 Sep 2023US$710.1bUS$226.6bUS$6.8b21.9x104.4x3.1x
Wed, 02 Aug 2023US$705.3bUS$228.7bUS$6.2b23.3x113.8x3.1x
Fri, 30 Jun 2023US$675.8bUS$228.6bUS$6.1b23.5x110x3x
Sun, 28 May 2023US$646.8bUS$229.3bUS$5.1b23.4x127.6x2.8x
Tue, 25 Apr 2023US$581.5bUS$225.6bUS$2.7b21.8x212.9x2.6x
Thu, 23 Mar 2023US$555.6bUS$225.0bUS$2.4b22.2x227.4x2.5x
Sat, 18 Feb 2023US$2.0tUS$461.4bUS$22.7b28.4x88.4x4.3x
Mon, 16 Jan 2023US$2.0tUS$458.1bUS$39.1b29.2x51.2x4.4x
Wed, 14 Dec 2022US$2.0tUS$456.9bUS$39.0b28.1x50.6x4.3x
Fri, 11 Nov 2022US$1.9tUS$455.3bUS$37.6b28.6x50.1x4.1x
Sun, 09 Oct 2022US$1.8tUS$449.6bUS$41.7b26.3x43.3x4x
Price to Earnings Ratio

43.3x


Total Market Cap: US$1.8tTotal Earnings: US$41.7bTotal Revenue: US$449.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.5x202320242025
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 53.9x which is lower than its 3-year average PE of 68.5x.
  • 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 declined 23% 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 Market0.77%
Tech1.78%
IT2.15%
IT Consulting3.52%
Internet Services and Infrastructure0.86%
Data Processing Services-0.68%
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 29.4%, which is lower than the prior year's growth of 54.4% 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 29% over the next 5 years.
  • However this is lower than its past earnings growth rate of 54% 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?

CompanyLast Price7D1YValuation
IBM International Business MachinesUS$286.497.1%
+US$17.7b		30.4%PE45.6x
ACN AccentureUS$243.711.9%
+US$2.9b		-31.6%PE19.8x
SNOW SnowflakeUS$230.553.6%
+US$2.7b		110.3%PS19x
CRWV CoreWeaveUS$137.052.7%
+US$1.9b		n/aPS20.2x
SHOP ShopifyUS$149.570.5%
+US$961.7m		89.1%PE82.9x

Latest News

VRSN
US$274.92
VeriSign
7D
-3.6%
1Y
46.4%
WIX
US$153.79
Wix.com
7D
-15.2%
1Y
-3.9%
KD
US$30.02
Kyndryl Holdings
7D
-4.8%
1Y
31.6%
APLD
US$25.00
Applied Digital
7D
6.6%
1Y
205.3%
SNOW
US$230.55
Snowflake
7D
3.6%
1Y
110.3%
ACN
US$243.71
Accenture
7D
1.9%
1Y
-31.6%

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Sep 29
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OKTA
US$91.69
Okta
7D
2.0%
1Y
26.7%

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Despite strong Q2 results and improved guidance driven by robust demand and enterprise traction, mixed analyst sentiment—balancing enhanced profitability with caution around long-term growth and valuation—led to a slight reduction in Okta’s consensus price target from $120.92 to $120.37. Analyst Commentary Strong Q2 results with cRPO growth exceeding guidance and upward revisions to full-year revenue outlook, suggesting robust underlying demand and improved execution.
KC
US$15.09
Kingsoft Cloud Holdings
7D
-8.4%
1Y
284.9%
CTSH
US$66.53
Cognizant Technology Solutions
7D
-2.7%
1Y
-13.3%
EPAM
US$152.30
EPAM Systems
7D
-2.6%
1Y
-22.3%
MDB
US$321.53
MongoDB
7D
2.0%
1Y
26.4%
SHOP
US$149.57
Shopify
7D
0.5%
1Y
89.1%
GDDY
US$132.18
GoDaddy
7D
-7.7%
1Y
-14.7%
IT
US$251.00
Gartner
7D
-4.5%
1Y
-50.5%

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.
CRWV
US$137.05
CoreWeave
7D
2.7%
1Y
n/a
IBM
US$286.49
International Business Machines
7D
7.1%
1Y
30.4%

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Aug 20
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