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

U.S. IT Industry Analysis

UpdatedFeb 23, 2026
DataAggregated Company Financials
Companies125
  • 7D-2.0%
  • 3M-12.9%
  • 1Y-13.0%
  • YTD-13.8%

Over the last 7 days, the IT industry has dropped 2.0%, driven by Cloudflare declining 9.6%. In contrast, Shopify has gained 12%. Overall the industry is down 13% in 12 months. 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
Mon, 23 Feb 2026US$882.9bUS$256.7bUS$21.7b21.5x40.8x3.4x
Wed, 21 Jan 2026US$1.1tUS$252.7bUS$19.8b27.4x53.5x4.2x
Fri, 19 Dec 2025US$1.1tUS$283.1bUS$20.9b29.9x51.4x3.8x
Sun, 16 Nov 2025US$1.0tUS$281.6bUS$20.8b26.8x50.4x3.7x
Tue, 14 Oct 2025US$1.1tUS$282.3bUS$20.0b31.7x53.2x3.8x
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
Price to Earnings Ratio

86.3x


Total Market Cap: US$1.9tTotal Earnings: US$22.4bTotal Revenue: US$463.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 68.4x202420252026
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 40.8x which is lower than its 3-year average PE of 68.4x.
  • 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 remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have declined 18% per year.
  • This means that the cost of doing business could be reducing since sales have declined but profits have remained steady.

Industry Trends

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

US Market1.04%
Tech1.26%
IT-1.99%
Data Processing Services1.21%
Internet Services and Infrastructure-1.13%
IT Consulting-2.80%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.8x.
    • Analysts are expecting annual earnings growth of 14.3%, which is lower than the prior year's growth of 19.9% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 32% over the next 5 years.
  • This is better than its past earnings growth rate of 13% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.5% 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
SHOP ShopifyUS$126.2012.0%
+US$17.6b		9.2%PE133.7x
SHAZ SharonAI HoldingsUS$30.771,519.5%
+US$473.7m		-54.3%PS336.5x
RXT Rackspace TechnologyUS$1.68299.8%
+US$306.9m		-36.1%PS0.2x
GDDY GoDaddyUS$90.641.7%
+US$205.4m		-47.8%PE14.8x
ASGN ASGNUS$45.259.2%
+US$163.1m		-32.9%PE17x

Latest News

NET
US$177.14
Cloudflare
7D
-9.6%
1Y
16.6%
AKAM
US$94.17
Akamai Technologies
7D
-15.7%
1Y
22.7%
DOX
US$70.17
Amdocs
7D
1.4%
1Y
-20.3%

DOX: Reset Guidance And Shareholder Returns Will Support Future Earnings Rebound

Analysts have reduced their price targets for Amdocs by $19 and $9, citing updated views on fair value, discount rate, revenue growth, profit margin and future P/E as the main reasons for the adjustment. Analyst Commentary Recent target cuts suggest analysts are reassessing how they value Amdocs, focusing on what they see as more conservative assumptions for fair value, discount rates, revenue growth, profit margins and future P/E levels.
SNOW
US$172.50
Snowflake
7D
-5.4%
1Y
-3.0%

SNOW: AI Partnerships And Consumption Strength Will Test Previously Fragile Premium Multiple

Snowflake's fair value estimate has been trimmed from $198.37 to $181.76 as analysts reset price targets lower across software, even while pointing to solid consumption trends, broadening AI related use cases, and sustained demand for data infrastructure. Analyst Commentary Recent Street research around Snowflake points to a more cautious tone even as many firms still highlight solid demand trends and broader AI related use cases.
ASGN
US$45.25
ASGN
7D
9.2%
1Y
-32.9%

ASGN: AI And Automation Services Will Support Future Multiple Re-Rating

Narrative Update on ASGN The analyst fair value estimate for ASGN has shifted from $63.00 to $65.00. Analysts generally point to higher modeled revenue growth, a slightly lower discount rate, and a more conservative future P/E assumption as drivers of the updated price target range echoed in recent Street research moves.
SHAZ
US$30.77
SharonAI Holdings
7D
1,519.5%
1Y
-54.3%
RXT
US$1.68
Rackspace Technology
7D
299.8%
1Y
-36.1%

RXT: Cloud Migrations Will Drive Future Upside Narrative Conviction

Narrative Update: Rackspace Technology Analyst Price Target Shift Analysts have modestly adjusted their $1.75 price target on Rackspace Technology, citing updated assumptions for revenue growth, profit margins and future P/E that reflect a slightly lower discount rate and a more refined outlook for the business. What's in the News Niterra EMEA GmbH selected Rackspace Technology to support a rapid migration to Google Cloud as part of its "Google first" IT strategy, focusing on unifying its global server environment on a single cloud platform (Key Developments).
MDB
US$344.56
MongoDB
7D
-6.5%
1Y
26.1%

MDB: Fair Outlook Balances AI Workload Opportunity With Execution And Expectation Risks

Narrative Update: MongoDB Our fair value estimate for MongoDB has been revised to $340.43, reflecting a higher revenue growth assumption of 18.87% and a very large future P/E multiple, as analysts point to broadly supportive price target moves tied to Atlas growth expectations, AI driven demand, and a generally constructive multi year setup in recent research. Analyst Commentary Recent research on MongoDB continues to lean constructive, with several firms lifting their price targets and highlighting the company as a key beneficiary of database modernization and artificial intelligence related workloads.
IBM
US$257.16
International Business Machines
7D
-2.0%
1Y
-1.7%

IBM: Execution Risks Around Confluent Integration Will Define Future Downside

Analysts have raised their price targets on International Business Machines, supporting a fair value increase from $198.00 to approximately $232.21. They attribute this change to updated assumptions regarding revenue growth, margins, and future P/E multiples.
GDDY
US$90.64
GoDaddy
7D
1.7%
1Y
-47.8%

GDDY: AI Synergy Phase Will Support Steady Margins And Long Term Returns

Analysts have trimmed their average price target for GoDaddy by $14 to around $130, citing updated discount rate and valuation assumptions, while also highlighting potential for steadier revenue growth and profit margins ahead. Analyst Commentary Recent research updates give you a mixed but useful read on how professionals are thinking about GoDaddy at the new, lower price targets around US$130.
SHOP
US$126.20
Shopify
7D
12.0%
1Y
9.2%

SHOP: Rich Multiple And Mixed Sentiment Will Likely Cap Near-Term Upside

Analysts have trimmed our Shopify fair value estimate to $110 from about $139. This reflects lower price targets across the Street as models reset for softer revenue growth assumptions, slightly reduced margin expectations, and lower sector P/E multiples despite generally solid recent results.
KD
US$12.51
Kyndryl Holdings
7D
2.2%
1Y
-67.4%
OKTA
US$74.29
Okta
7D
-14.9%
1Y
-19.9%
ACN
US$215.35
Accenture
7D
-4.0%
1Y
-40.9%
CRWV
US$89.25
CoreWeave
7D
-7.1%
1Y
n/a
ATGL
US$19.48
Alpha Technology Group
7D
12.0%
1Y
-52.5%