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U.S. IT Industry Analysis

UpdatedMay 30, 2026
DataAggregated Company Financials
Companies117
  • 7D13.1%
  • 3M17.0%
  • 1Y5.6%
  • YTD-3.1%

The IT industry is up 13% in the last week, with International Business Machines up 17%. Meanwhile, VeriSign actually underperformed within the industry, shrinking 7.9% in the last week. In the last 12 months, the industry was up 5.6%. Earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 30 May 2026US$930.9bUS$259.4bUS$20.1b20.6x46.2x3.6x
Mon, 27 Apr 2026US$843.3bUS$261.1bUS$21.7b20.6x38.8x3.2x
Wed, 25 Mar 2026US$869.9bUS$259.6bUS$21.6b18.9x40.4x3.4x
Fri, 20 Feb 2026US$903.9bUS$256.5bUS$21.7b20.7x41.6x3.5x
Sun, 18 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.5x4.2x
Tue, 16 Dec 2025US$1.1tUS$282.1bUS$21.0b29.8x52.1x3.9x
Thu, 13 Nov 2025US$1.1tUS$280.8bUS$20.5b31.2x53.6x3.9x
Sat, 11 Oct 2025US$1.1tUS$282.5bUS$20.0b30.7x55.8x4x
Mon, 08 Sep 2025US$983.7bUS$250.9bUS$19.3b29.3x50.9x3.9x
Wed, 06 Aug 2025US$943.0bUS$243.6bUS$17.9b26.2x52.7x3.9x
Fri, 04 Jul 2025US$1.0tUS$241.7bUS$17.4b29.5x59.3x4.3x
Sun, 01 Jun 2025US$948.3bUS$240.3bUS$17.0b29x55.7x3.9x
Tue, 29 Apr 2025US$841.9bUS$242.4bUS$18.0b31.6x46.9x3.5x
Thu, 27 Mar 2025US$890.7bUS$240.8bUS$19.2b45.1x46.3x3.7x
Sat, 22 Feb 2025US$976.6bUS$239.7bUS$18.2b40.2x53.8x4.1x
Mon, 20 Jan 2025US$872.5bUS$234.1bUS$16.3b42.1x53.4x3.7x
Wed, 18 Dec 2024US$896.3bUS$233.2bUS$16.4b43.8x54.7x3.8x
Fri, 15 Nov 2024US$866.7bUS$232.6bUS$16.3b46.9x53.1x3.7x
Sun, 13 Oct 2024US$823.0bUS$232.9bUS$17.8b43.4x46.3x3.5x
Tue, 10 Sep 2024US$746.6bUS$233.3bUS$17.6b35.4x42.5x3.2x
Thu, 08 Aug 2024US$690.7bUS$232.5bUS$16.1b28.3x42.9x3x
Sat, 06 Jul 2024US$720.0bUS$237.0bUS$17.2b28.5x41.9x3x
Mon, 03 Jun 2024US$671.5bUS$237.1bUS$17.3b28.3x38.8x2.8x
Wed, 01 May 2024US$699.4bUS$228.0bUS$14.3b24.9x48.9x3.1x
Fri, 29 Mar 2024US$781.0bUS$227.7bUS$13.8b22.6x56.5x3.4x
Sun, 25 Feb 2024US$827.0bUS$227.5bUS$14.2b22x58.2x3.6x
Tue, 23 Jan 2024US$818.4bUS$229.4bUS$12.9b22.4x63.2x3.6x
Thu, 21 Dec 2023US$787.8bUS$229.5bUS$12.8b20.3x61.5x3.4x
Sat, 18 Nov 2023US$717.0bUS$228.4bUS$12.7b20.7x56.5x3.1x
Mon, 16 Oct 2023US$651.0bUS$227.2bUS$6.5b20.7x100.6x2.9x
Wed, 13 Sep 2023US$711.0bUS$226.6bUS$6.8b23.2x104.5x3.1x
Fri, 11 Aug 2023US$668.8bUS$226.3bUS$6.7b23.1x100.2x3x
Sun, 09 Jul 2023US$667.8bUS$228.6bUS$6.1b24.2x109.6x2.9x
Tue, 06 Jun 2023US$673.3bUS$228.2bUS$5.9b22.1x113.7x2.9x
Price to Earnings Ratio

113.7x


Total Market Cap: US$673.3bTotal Earnings: US$5.9bTotal Revenue: US$228.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 57.9x202420252026
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 46.2x which is lower than its 3-year average PE of 57.9x.
  • 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 grown 50% per year over the last three years.
  • Revenues for these companies have grown 4.4% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market1.47%
Tech4.55%
IT13.09%
Internet Services and Infrastructure14.10%
IT Consulting11.83%
Data Processing Services-1.27%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry, which is trading close to its 3-year average PE ratio of 27.7x.
    • Analysts are expecting annual earnings growth of 13.5%, which is lower than the prior year's growth of 25.8% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 26% over the next 5 years.
  • However this is lower than its past earnings growth rate of 88% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 7.9% 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$297.8017.3%
+US$41.3b		15.0%PE26.1x
SNOW SnowflakeUS$255.5548.4%
+US$28.8b		24.3%PS17.5x
SHOP ShopifyUS$118.7115.3%
+US$20.4b		10.7%PE115.9x
NET CloudflareUS$241.8211.9%
+US$9.1b		45.8%PS36.7x
OKTA OktaUS$123.2733.6%
+US$5.3b		19.5%PE86.7x

Latest News

OKTA
US$123.27
Okta
7D
33.6%
1Y
19.5%
KC
US$12.28
Kingsoft Cloud Holdings
7D
-13.6%
1Y
9.9%
CRWV
US$109.53
CoreWeave
7D
3.8%
1Y
-1.6%
ACN
US$187.07
Accenture
7D
4.4%
1Y
-41.0%
SNOW
US$255.55
Snowflake
7D
48.4%
1Y
24.3%
DOCN
US$155.95
DigitalOcean Holdings
7D
-1.6%
1Y
451.1%
IBM
US$297.80
International Business Machines
7D
17.3%
1Y
15.0%
Narrative Update • May 28

This news is strategically bullish but financially asymmetric

Below is a structured investment-style analysis (in English) of how this news could affect IBM’s future earnings and valuation , incorporating both the quantum foundry (Anderon) and the Abertis consulting deal. IBM: Impact Analysis on Earnings & Valuation 1.
NET
US$241.82
Cloudflare
7D
11.9%
1Y
45.8%
Seeking Alpha • May 26

Cloudflare Is Priced For Perfection

Summary Cloudflare, Inc. combines accelerating top-line growth, robust AI-driven demand, and a clear path to margin expansion. Despite 34% YoY revenue growth and a major workforce reduction to boost profitability, NET trades at an aggressive 27x sales. NET management's shift to an AI-operating model and strong cash position underscore strategic discipline, but valuation remains a key risk. I reiterate my Sell rating for NET, citing insufficient margin of safety and risk of multiple compression despite NET’s leadership and execution. Read the full article on Seeking Alpha
SHOP
US$118.71
Shopify
7D
15.3%
1Y
10.7%
CTSH
US$55.76
Cognizant Technology Solutions
7D
5.7%
1Y
-31.2%
DOX
US$62.97
Amdocs
7D
0.5%
1Y
-31.4%
AIAI
US$12.83
AIAI Holdings
7D
-18.2%
1Y
n/a
GDDY
US$85.83
GoDaddy
7D
-5.1%
1Y
-52.9%
VRSN
US$285.38
VeriSign
7D
-7.9%
1Y
4.7%
Narrative Update • May 13

VRSN: 2026 Earnings Guidance Will Test Elevated Market Expectations

The analyst fair value estimate for VeriSign has shifted from $250 to $265. This change is broadly aligned with recent price target increases from several firms as analysts factor in updated views on revenue growth, margins, discount rates, and future P/E assumptions.
MGRT
US$82.98
Mega Fortune
7D
-3.5%
1Y
n/a
BNAI
US$14.84
Brand Engagement Network
7D
-19.8%
1Y
431.9%