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U.S. IT Industry Analysis

UpdatedApr 03, 2026
DataAggregated Company Financials
Companies115
  • 7D1.6%
  • 3M-16.6%
  • 1Y4.7%
  • YTD-16.7%

Over the last 7 days, the IT industry has risen 1.6%, driven by gains from International Business Machines of 2.7%. Meanwhile, Snowflake actually underperformed within the industry, shrinking 6.5% in the last week. This takes the industry's 12 month performance to a gain of 4.7%. Earnings are forecast to grow by 17% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 03 Apr 2026US$842.4bUS$259.6bUS$21.6b19.9x39.1x3.2x
Sun, 01 Mar 2026US$846.9bUS$257.8bUS$21.4b21.3x39.7x3.3x
Tue, 27 Jan 2026US$1.0tUS$252.7bUS$19.8b28x51.3x4x
Thu, 25 Dec 2025US$1.1tUS$283.1bUS$20.9b29.6x52.7x3.9x
Sat, 22 Nov 2025US$1.0tUS$281.4bUS$20.9b27.8x48.2x3.6x
Mon, 20 Oct 2025US$1.1tUS$282.7bUS$20.0b31.7x53.7x3.8x
Wed, 17 Sep 2025US$1.0tUS$250.9bUS$19.3b29.2x52x4x
Fri, 15 Aug 2025US$960.7bUS$250.2bUS$19.3b31.4x49.8x3.8x
Sun, 13 Jul 2025US$962.6bUS$241.7bUS$17.4b28.4x55.5x4x
Tue, 10 Jun 2025US$989.0bUS$240.5bUS$17.1b29.3x57.9x4.1x
Thu, 08 May 2025US$855.1bUS$238.5bUS$17.0b32.7x50.3x3.6x
Sat, 05 Apr 2025US$832.6bUS$242.3bUS$18.5b30.9x45.1x3.4x
Mon, 03 Mar 2025US$947.1bUS$239.9bUS$18.0b39.2x52.6x3.9x
Wed, 29 Jan 2025US$906.2bUS$234.1bUS$16.3b43.7x55.5x3.9x
Fri, 27 Dec 2024US$879.1bUS$234.7bUS$16.7b41.1x52.6x3.7x
Sun, 24 Nov 2024US$876.1bUS$233.0bUS$16.3b41.6x53.7x3.8x
Tue, 22 Oct 2024US$831.5bUS$232.8bUS$17.8b43.5x46.8x3.6x
Thu, 19 Sep 2024US$765.7bUS$233.3bUS$17.5b35.5x43.6x3.3x
Sat, 17 Aug 2024US$743.5bUS$232.8bUS$17.5b35.3x42.4x3.2x
Mon, 15 Jul 2024US$729.5bUS$236.9bUS$17.2b28x42.5x3.1x
Wed, 12 Jun 2024US$684.1bUS$237.2bUS$17.3b27.7x39.7x2.9x
Fri, 10 May 2024US$726.7bUS$236.8bUS$16.6b24.8x43.7x3.1x
Sun, 07 Apr 2024US$763.7bUS$227.8bUS$13.8b25.6x55.2x3.4x
Tue, 05 Mar 2024US$824.1bUS$227.7bUS$14.3b22.8x57.6x3.6x
Thu, 01 Feb 2024US$838.7bUS$230.1bUS$13.4b22.7x62.8x3.6x
Sat, 30 Dec 2023US$799.4bUS$229.5bUS$12.8b20.7x62.4x3.5x
Mon, 27 Nov 2023US$737.5bUS$228.5bUS$12.7b20.6x58.1x3.2x
Wed, 25 Oct 2023US$632.1bUS$227.2bUS$6.5b18.4x97.7x2.8x
Fri, 22 Sep 2023US$667.7bUS$226.6bUS$6.8b23.6x98.5x2.9x
Sun, 20 Aug 2023US$650.0bUS$226.1bUS$6.5b20.6x99.3x2.9x
Tue, 18 Jul 2023US$696.9bUS$228.7bUS$6.1b25.7x114.4x3x
Thu, 15 Jun 2023US$690.6bUS$228.2bUS$5.9b24.3x116.6x3x
Sat, 13 May 2023US$615.5bUS$229.7bUS$6.5b23.5x94.6x2.7x
Mon, 10 Apr 2023US$589.8bUS$225.6bUS$2.5b23.3x239.8x2.6x
Price to Earnings Ratio

239.8x


Total Market Cap: US$589.8bTotal Earnings: US$2.5bTotal Revenue: US$225.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 64.8x202420252026
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 39.1x which is lower than its 3-year average PE of 64.8x.
  • 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 106% per year over the last three years.
  • Revenues for these companies have grown 4.8% 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 Market1.90%
Tech2.41%
IT1.63%
IT Consulting2.53%
Internet Services and Infrastructure0.75%
Data Processing Services0.72%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.4x.
    • Analysts are expecting annual earnings growth of 13.6%, which is lower than the prior year's growth of 26.6% per year.
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 roughly in line with its past earnings growth rate.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 7.7% 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$248.162.7%
+US$6.1b		1.9%PE22x
SHOP ShopifyUS$118.252.4%
+US$3.7b		43.7%PE125.3x
ACN AccentureUS$201.332.5%
+US$3.0b		-33.2%PE16.2x
MDB MongoDBUS$253.124.9%
+US$951.6m		55.0%PS8.3x
CRWV CoreWeaveUS$82.242.2%
+US$941.0m		52.9%PS8.4x

Latest News

MDB
US$253.12
MongoDB
7D
4.9%
1Y
55.0%

MDB: AI Data Stack Leadership Will Support Post Reset Upside Potential

The updated analyst price target for MongoDB moves from about $525 to about $462, as analysts factor in softer margin and revenue growth assumptions alongside a slightly higher future P/E multiple following recent Q4 results and guidance. Analyst Commentary Recent Street research on MongoDB reflects a wide reset in price targets following Q4 results and fiscal 2027 guidance.
SNOW
US$151.85
Snowflake
7D
-6.5%
1Y
8.5%

Snowflake: Cheap Enough To Watch, Not Yet Cheap Enough To Buy

Apr 02
CRWV
US$82.24
CoreWeave
7D
2.2%
1Y
52.9%

CoreWeave: Why I Am Reiterating A Buy

Apr 02
APLD
US$24.56
Applied Digital
7D
-4.5%
1Y
333.9%

APLD: Hyperscale Power Contracts Will Define Future Pure Play AI Infrastructure

Analysts are maintaining a $58 price target on Applied Digital, citing strong AI infrastructure demand, advanced discussions for 900MW of hyperscale capacity, and recent colocation and power contract developments as factors supporting the updated revenue growth and risk assumptions. Analyst Commentary Recent Street research reflects a broadly constructive tone around Applied Digital, with several bullish analysts pointing to hyperscale demand, contracted power projects, and AI colocation activity as key supports for the current valuation framework.
RXT
US$0.96
Rackspace Technology
7D
-17.5%
1Y
-38.2%

RXT: Q4 Execution And FY26 Guidance Will Support Constructive Upside Potential

Analysts have raised Rackspace Technology's price target to a range of $2 to $2.50, up from $1.30 to $1.75, citing better-than-expected Q4 results and progress toward guidance that aligns with FY26 expectations. Analyst Commentary Recent price target moves point to improving sentiment around Rackspace Technology, with bullish analysts reacting to Q4 results and guidance that align with FY26 expectations.
VRSN
US$259.85
VeriSign
7D
3.6%
1Y
1.7%
WIX
US$81.95
Wix.com
7D
-8.5%
1Y
-47.4%

WIX: AI Execution And Capital Returns Will Support Long Term Upside

Analysts have trimmed the fair value estimate for Wix.com from about $203.01 to roughly $170.08. This reflects a series of reduced price targets and fresh Neutral ratings that point to questions around margin trajectory, AI related traffic risks for core customers, and the investment required to scale newer offerings like Base44 and Harmony.
IBM
US$248.16
International Business Machines
7D
2.7%
1Y
1.9%

IBM: Hybrid Cloud And AI Platforms Will Reshape Mainframe Reliance

Analysts have trimmed their average price targets on IBM by a wide range, including cuts of $34 and $60 alongside multiple earlier increases of $5 to $52, while keeping fair value at $390.0. They are weighing slower mainframe and consulting trends against broader hybrid cloud and AI opportunities, as well as a slightly lower assumed discount rate and P/E multiple in current models. Analyst Commentary Recent research on International Business Machines shows a mix of caution on mainframe and consulting trends alongside clear pockets of optimism around hybrid cloud, AI and the company’s broader software franchise.
FSLY
US$33.50
Fastly
7D
17.2%
1Y
464.0%

FSLY: Richer P/E Multiple Will Test Execution Against Overvaluation Concerns

Fastly's analyst price target has moved up to $20 from $12, as analysts point to improving execution and a willingness to assign a higher earnings multiple after recent investor meetings with management. Analyst Commentary Bullish analysts are pointing to improving execution at Fastly as a key reason for revisiting their valuation assumptions, which is leading to higher price targets and, in at least one case, an upgrade in rating.
SHOP
US$118.25
Shopify
7D
2.4%
1Y
43.7%

SHOP: Agentic Commerce Role Will Confront Sector Multiple Compression And High Expectations

Analysts kept Shopify's fair value estimate steady at $110, while modestly refining their assumptions for discount rate, revenue growth, margin profile and future P/E. This reflects a mix of recent price target increases tied to Shopify's role in agentic commerce and infrastructure, along with resets from other firms that cite valuation and sector multiple compression.
GDS
US$39.91
GDS Holdings
7D
-5.0%
1Y
63.5%

GDS: Higher Control Concentration And Costly Preferred Shares Will Pressure Shares

Analysts have raised their price target on GDS Holdings by roughly $3, reflecting updated views on fair value, growth assumptions, and future P/E expectations, even as projected profit margins are revised lower. What's in the News GDS issued earnings guidance for 2026, with total revenues expected in a range of RMB 12,400 million to RMB 12,900 million, which implies a projected year on year change of roughly 8.5% to 12.8% (Corporate Guidance).
CTSH
US$62.54
Cognizant Technology Solutions
7D
2.9%
1Y
-14.6%

AI Builder Push And Fixed Bid Exposure Will Shape A Cautious But Stable Outlook

Catalysts About Cognizant Technology Solutions Cognizant Technology Solutions provides IT services, consulting and business process services to large enterprises across sectors such as financial services, health care, products and technology. What are the underlying business or industry changes driving this perspective?
KC
US$13.70
Kingsoft Cloud Holdings
7D
-4.9%
1Y
-7.9%
ACN
US$201.33
Accenture
7D
2.5%
1Y
-33.2%

ACN: GenAI Partnerships And AI Adoption Will Drive Enterprise Modernization

Accenture's fair value estimate is adjusted from about $283 to $252, as analysts temper revenue growth and profit margin assumptions and apply a lower future P/E multiple in response to a broad wave of reduced price targets, despite generally constructive views on the latest quarterly performance. Analyst Commentary Recent Street research around Accenture clusters around a common theme, with many firms trimming price targets while still generally acknowledging solid execution and a credible long term story in areas like GenAI and digital transformation.
VNET
US$8.19
VNET Group
7D
-6.0%
1Y
11.7%

VNET: 2026 Revenue Guidance And Margin Outlook Will Likely Support Fair Value

Analysts have raised their price target for VNET Group to a fair value of $9.37 from $6.51, citing updated assumptions for revenue growth of 15.96%, a profit margin of 8.19%, and a future P/E of 20.37x as the key drivers of the change. What's in the News VNET Group issued earnings guidance for the full year 2026, outlining expected total net revenues in the range of RMB 11.5b to RMB 11.8b (Key Developments).
ASGN
US$39.05
ASGN
7D
-2.1%
1Y
-36.6%

ASGN: Buybacks And M&A Execution Will Shape Future Upside Potential

ASGN's fair value estimate has shifted from $52.83 to $54.50 as analysts update their price targets, citing adjusted assumptions for revenue growth, profitability, discount rate, and future P/E in light of recent Street research moves from BMO Capital, Baird, Truist, and Wells Fargo. Analyst Commentary Recent price target changes cluster tightly, with several bullish analysts lifting their targets by US$2 and one by US$10, while a bearish analyst trimmed a target by US$2.