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U.S. IT Industry Analysis

UpdatedJan 30, 2026
DataAggregated Company Financials
Companies124
  • 7D0.2%
  • 3M-8.5%
  • 1Y-3.4%
  • YTD0.2%

Last week, the IT industry hasn't moved much but International Business Machines is up 4.9% in that time. Unfortunately though, the industry is down 3.4% over the past 12 months. Looking forward, 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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 30 Jan 2026US$1.0tUS$254.9bUS$22.5b28.2x45.9x4.1x
Sun, 28 Dec 2025US$1.1tUS$283.0bUS$20.9b29.4x52.7x3.9x
Tue, 25 Nov 2025US$1.0tUS$281.3bUS$20.8b27.2x49.4x3.6x
Thu, 23 Oct 2025US$1.1tUS$282.4bUS$20.0b30x54.5x3.9x
Sat, 20 Sep 2025US$1.0tUS$251.0bUS$19.3b32.6x52.8x4.1x
Mon, 18 Aug 2025US$941.9bUS$250.3bUS$19.3b29.8x48.9x3.8x
Wed, 16 Jul 2025US$978.0bUS$241.7bUS$17.4b27.4x56.4x4x
Fri, 13 Jun 2025US$1.0tUS$240.5bUS$17.1b29.2x58.9x4.2x
Sun, 11 May 2025US$862.7bUS$239.1bUS$16.7b30.7x51.7x3.6x
Tue, 08 Apr 2025US$779.0bUS$242.3bUS$18.5b31.2x42.2x3.2x
Thu, 06 Mar 2025US$927.9bUS$240.0bUS$18.1b41.4x51.3x3.9x
Sat, 01 Feb 2025US$968.9bUS$234.3bUS$16.0b44.1x60.7x4.1x
Mon, 30 Dec 2024US$869.4bUS$234.7bUS$16.7b40.8x52.1x3.7x
Wed, 27 Nov 2024US$889.8bUS$233.1bUS$16.3b47.5x54.7x3.8x
Fri, 25 Oct 2024US$815.6bUS$232.9bUS$15.7b43.1x51.8x3.5x
Sun, 22 Sep 2024US$775.4bUS$233.3bUS$17.5b40.3x44.3x3.3x
Tue, 20 Aug 2024US$745.7bUS$232.8bUS$17.5b35.3x42.5x3.2x
Thu, 18 Jul 2024US$754.9bUS$236.9bUS$17.2b28.9x43.9x3.2x
Sat, 15 Jun 2024US$676.8bUS$237.2bUS$17.3b27.4x39.2x2.9x
Mon, 13 May 2024US$709.0bUS$236.9bUS$16.7b23.4x42.4x3x
Wed, 10 Apr 2024US$763.2bUS$227.8bUS$13.8b24.9x55.2x3.4x
Fri, 08 Mar 2024US$823.3bUS$227.7bUS$14.3b22.7x57.4x3.6x
Sun, 04 Feb 2024US$843.8bUS$229.9bUS$13.5b22.4x62.7x3.7x
Tue, 02 Jan 2024US$794.0bUS$229.5bUS$12.8b20.7x62x3.5x
Thu, 30 Nov 2023US$742.1bUS$228.6bUS$12.7b20.6x58.5x3.2x
Sat, 28 Oct 2023US$620.2bUS$227.8bUS$11.4b17.6x54.4x2.7x
Mon, 25 Sep 2023US$671.1bUS$226.6bUS$6.8b24x99x3x
Wed, 23 Aug 2023US$659.2bUS$226.1bUS$6.6b20.4x99.8x2.9x
Fri, 21 Jul 2023US$691.8bUS$228.6bUS$6.2b25.2x111.5x3x
Sun, 18 Jun 2023US$694.9bUS$228.3bUS$5.9b24.4x117.4x3x
Tue, 16 May 2023US$622.4bUS$229.7bUS$6.5b23.8x96.1x2.7x
Thu, 13 Apr 2023US$588.8bUS$225.6bUS$2.5b23.5x239.3x2.6x
Sat, 11 Mar 2023US$1.9tUS$463.9bUS$22.4b25.1x84x4x
Mon, 06 Feb 2023US$2.1tUS$459.6bUS$40.0b28.4x51.9x4.5x
Price to Earnings Ratio

51.9x


Total Market Cap: US$2.1tTotal Earnings: US$40.0bTotal Revenue: US$459.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 69x202420252026
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 45.9x which is lower than its 3-year average PE of 69.0x.
  • 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 17% 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 Market0.25%
Tech0.98%
IT0.21%
Internet Services and Infrastructure1.84%
IT Consulting-1.23%
Data Processing Services-6.55%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.2x.
    • Analysts are expecting annual earnings growth of 15.5%, which is lower than the prior year's growth of 25.3% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% 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 7.5% 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$309.244.9%
+US$13.6b		19.7%PE27.3x
SHOP ShopifyUS$143.644.4%
+US$7.8b		20.5%PE105x
CRWV CoreWeaveUS$99.538.4%
+US$6.1b		n/aPS12x
NET CloudflareUS$180.394.1%
+US$2.5b		31.4%PS31.4x
TCGL TechCreate GroupUS$86.36944.3%
+US$1.6b		n/aPS678.8x

Latest News

IT
US$212.70
Gartner
7D
-10.3%
1Y
-61.2%
APLD
US$38.07
Applied Digital
7D
9.6%
1Y
415.9%
IBM
US$309.24
International Business Machines
7D
4.9%
1Y
19.7%
SHOP
US$143.64
Shopify
7D
4.4%
1Y
20.5%
NET
US$180.39
Cloudflare
7D
4.1%
1Y
31.4%
VRSN
US$244.21
VeriSign
7D
-2.9%
1Y
14.1%

VRSN: Stronger Dot Com Base And Steady Margins Will Support Future Confidence

Analysts trimmed their fair value estimate for VeriSign slightly to $290.75 from $295.75, citing relatively steady assumptions around revenue growth, profit margins and future P/E. They also acknowledged recent Street research that views the.
SNOW
US$199.37
Snowflake
7D
-5.6%
1Y
11.2%
ACN
US$261.22
Accenture
7D
-8.4%
1Y
-31.4%

ACN: GenAI Modernization Partnerships And Cannibalization Risks Will Steer Future Returns

Analysts have nudged their fair value estimate for Accenture higher to about $292, a move of roughly $3, as recent research highlights renewed interest in the stock, supported by fresh coverage and upward price target revisions tied to GenAI driven enterprise modernization potential. Analyst Commentary Bullish Takeaways Bullish analysts see Accenture as a relatively attractive way to gain exposure to GenAI driven enterprise modernization, with the current valuation framed as reasonable versus its own history.
OKTA
US$85.69
Okta
7D
-6.3%
1Y
-8.6%

OKTA: Cybersecurity Demand And 90 Day Catalyst Watch Will Support Premium Performance

Narrative Update on Okta Our analyst price target for Okta edges higher by about US$1, supported by slightly lower discount rate assumptions and steady growth and profitability expectations that align with recent research pointing to durable cybersecurity demand and potential near term bookings strength. Analyst Commentary Recent Street research on Okta reflects a mix of optimism about growth and execution along with caution around near term expectations and valuation sensitivity ahead of key earnings events.
KC
US$14.21
Kingsoft Cloud Holdings
7D
18.9%
1Y
7.0%

KC: Higher Profitability Assumptions Will Support Future Upside Potential

Analysts have nudged their fair value estimate for Kingsoft Cloud Holdings slightly higher to US$18.14 from US$18.04, citing updated assumptions for discount rate, revenue growth, profit margin and future P/E expectations. What's in the News A board meeting is scheduled for November 19, 2025, to review and approve the unaudited third quarter results for Kingsoft Cloud Holdings, its subsidiaries, and consolidated affiliated entities for the three months ended September 30, 2025, and to consider their publication (Key Developments).
MDB
US$374.02
MongoDB
7D
-7.6%
1Y
38.0%

MDB: Atlas And AI Adoption Will Support Upcoming Leadership Transition

Analysts have modestly raised their implied outlook on MongoDB, with price targets now clustering in the US$405 to US$500 range. They cite stronger Atlas momentum, improving profitability, and confidence in the company’s AI positioning and new leadership.
CRWV
US$99.53
CoreWeave
7D
8.4%
1Y
n/a
GDDY
US$99.24
GoDaddy
7D
-6.4%
1Y
-53.5%

GDDY: A&C And Aftermarket Execution Will Support AI Synergy Phase Upside

Narrative Update Analysts have trimmed their GoDaddy price targets. Our fair value estimate has moved from $246.51 to $240.00, reflecting more cautious revenue growth and a higher discount rate, even as margin expectations rise and the assumed future P/E declines.
GDS
US$46.43
GDS Holdings
7D
10.2%
1Y
101.4%

GDS: Execution Risk Around 300MW 2025 Leasing Will Pressure Shares

Analysts have slightly reduced their price targets on GDS Holdings, with recent moves such as TD Cowen trimming its target to US$37 and a new Outperform initiation at Macquarie with a US$46.70 target, reflecting updated views on mixed 3Q25 results, maintained 2025 guidance, expectations for 300MW of 2025 leasing, and higher installs in 2026. Analyst Commentary Recent Street research shows a mixed but cautious tone around GDS Holdings, with some bearish analysts trimming expectations even as others initiate coverage with constructive views.
CTSH
US$82.45
Cognizant Technology Solutions
7D
-2.6%
1Y
-0.4%

CTSH: AI Partnerships And Bookings Momentum Will Support Measured Future Upside

Analysts have nudged their price target for Cognizant Technology Solutions higher, with fair value moving from about $85.22 to $88.00 as they factor in slightly stronger revenue growth expectations, a marginally higher future P/E multiple, and recent research pointing to healthier bookings, large deal momentum, and a potential new phase of growth and profitability supported by an AI focused strategy. Analyst Commentary Recent research on Cognizant Technology Solutions reflects a mix of optimism around execution and AI driven growth, alongside some caution on bookings trends and valuation.
TCGL
US$86.36
TechCreate Group
7D
944.3%
1Y
n/a