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U.S. IT Industry Analysis

UpdatedMay 12, 2026
DataAggregated Company Financials
Companies113
  • 7D-5.0%
  • 3M-13.7%
  • 1Y-8.3%
  • YTD-19.3%

Over the last 7 days, the IT industry has dropped 1.2%, driven by a pullback from Shopify of 20%. On the other hand Akamai Technologies is actually up 45%. Over the last year, the industry has been flat overall. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 12 May 2026US$847.3bUS$258.3bUS$20.6b23.7x41.1x3.3x
Thu, 09 Apr 2026US$848.1bUS$259.7bUS$21.6b20.2x39.3x3.3x
Sat, 07 Mar 2026US$889.3bUS$258.0bUS$21.5b21.3x41.4x3.4x
Mon, 02 Feb 2026US$998.8bUS$254.8bUS$22.5b27.6x44.3x3.9x
Wed, 31 Dec 2025US$1.1tUS$283.0bUS$20.9b30x52x3.8x
Fri, 28 Nov 2025US$1.1tUS$281.4bUS$20.9b27.8x50.6x3.8x
Sun, 26 Oct 2025US$1.1tUS$283.6bUS$22.0b30.7x51.6x4x
Tue, 23 Sep 2025US$1.0tUS$251.0bUS$19.3b32.1x53.3x4.1x
Thu, 21 Aug 2025US$940.0bUS$250.3bUS$19.3b29.7x48.8x3.8x
Sat, 19 Jul 2025US$999.0bUS$241.7bUS$17.3b28x57.6x4.1x
Mon, 16 Jun 2025US$977.0bUS$240.5bUS$17.1b28.6x57.2x4.1x
Wed, 14 May 2025US$910.0bUS$239.2bUS$16.7b37.3x54.6x3.8x
Fri, 11 Apr 2025US$837.7bUS$242.3bUS$18.5b31.8x45.4x3.5x
Sun, 09 Mar 2025US$917.2bUS$239.9bUS$18.3b43.7x50.1x3.8x
Tue, 04 Feb 2025US$966.2bUS$234.3bUS$16.0b43.4x60.6x4.1x
Thu, 02 Jan 2025US$855.8bUS$234.1bUS$16.5b46.7x52x3.7x
Sat, 30 Nov 2024US$894.5bUS$233.1bUS$16.3b45.3x55x3.8x
Mon, 28 Oct 2024US$792.0bUS$232.9bUS$15.7b43.6x50.3x3.4x
Wed, 25 Sep 2024US$785.2bUS$233.3bUS$17.5b39.6x44.9x3.4x
Fri, 23 Aug 2024US$760.6bUS$233.0bUS$17.4b33.6x43.6x3.3x
Sun, 21 Jul 2024US$739.1bUS$236.9bUS$17.2b28.9x43.1x3.1x
Tue, 18 Jun 2024US$684.8bUS$237.2bUS$17.3b27x39.7x2.9x
Thu, 16 May 2024US$711.9bUS$236.9bUS$16.7b24.5x42.6x3x
Sat, 13 Apr 2024US$752.7bUS$227.8bUS$13.7b25x54.7x3.3x
Mon, 11 Mar 2024US$812.2bUS$227.8bUS$14.3b23.9x56.6x3.6x
Wed, 07 Feb 2024US$816.5bUS$227.1bUS$12.9b20x63.1x3.6x
Fri, 05 Jan 2024US$757.4bUS$229.5bUS$12.8b20.2x59x3.3x
Sun, 03 Dec 2023US$761.8bUS$228.9bUS$12.7b21.2x59.8x3.3x
Tue, 31 Oct 2023US$624.2bUS$227.8bUS$11.4b18.3x54.8x2.7x
Thu, 28 Sep 2023US$662.2bUS$226.6bUS$6.8b24.5x97.7x2.9x
Sat, 26 Aug 2023US$674.4bUS$226.3bUS$6.6b21.2x101.9x3x
Mon, 24 Jul 2023US$693.0bUS$228.6bUS$6.2b25.5x111.7x3x
Wed, 21 Jun 2023US$688.0bUS$228.2bUS$5.9b23.9x116.3x3x
Fri, 19 May 2023US$640.1bUS$229.7bUS$6.5b23x99.2x2.8x
Price to Earnings Ratio

99.2x


Total Market Cap: US$640.1bTotal Earnings: US$6.5bTotal Revenue: US$229.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 59.1x202420252026
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 41.1x which is lower than its 3-year average PE of 59.1x.
  • 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 47% per year over the last three years.
  • Revenues for these companies have grown 4.0% 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 Market2.58%
Tech7.51%
IT-4.97%
IT Consulting-3.68%
Data Processing Services-3.80%
Internet Services and Infrastructure-5.98%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 27.6x.
    • Analysts are expecting annual earnings growth of 13.8%, which is lower than the prior year's growth of 24.4% 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 86% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.1% 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
AKAM Akamai TechnologiesUS$153.0144.6%
+US$6.7b		94.2%PE51.1x
DOCN DigitalOcean HoldingsUS$162.7249.5%
+US$5.6b		414.8%PE71.7x
APLD Applied DigitalUS$44.5925.1%
+US$2.6b		739.7%PS39.9x
SNOW SnowflakeUS$151.505.1%
+US$2.5b		-16.1%PS11.2x
MDB MongoDBUS$294.6511.3%
+US$2.4b		53.8%PS9.6x

Latest News

DOCN
US$162.72
DigitalOcean Holdings
7D
49.5%
1Y
414.8%
Seeking Alpha • 4h

DigitalOcean: I Underestimated The Agentic AI Boom, Time To Re-Evaluate

Summary DigitalOcean is experiencing a major AI-driven growth inflection, with management guiding for revenue growth to double by next year. DOCN's focus on agentic AI inference has enabled it to outperform expectations, despite intense hyperscaler competition and limited CapEx. Management raised full-year guidance to 27% revenue growth and 39% adjusted EBITDA margin, but consensus long-term estimates may be too optimistic. I maintain a "Neutral" rating on DOCN, citing valuation concerns, margin risks, and potential long-term pressure from hyperscalers despite recent outperformance. Read the full article on Seeking Alpha
CRWV
US$114.70
CoreWeave
7D
-8.6%
1Y
96.1%
SHOP
US$102.54
Shopify
7D
-19.6%
1Y
-1.7%
MDB
US$294.65
MongoDB
7D
11.3%
1Y
53.8%
APLD
US$44.59
Applied Digital
7D
25.1%
1Y
739.7%
AKAM
US$153.01
Akamai Technologies
7D
44.6%
1Y
94.2%
CTSH
US$49.25
Cognizant Technology Solutions
7D
-5.0%
1Y
-39.8%
NET
US$193.52
Cloudflare
7D
-13.7%
1Y
35.9%
FSLY
US$19.58
Fastly
7D
-28.8%
1Y
141.7%
Seeking Alpha • May 09

Fastly, Inc.: The Edge Cloud Inflection Nobody Is Pricing Correctly

Summary Fastly (FSLY) is rated a buy, with a fair value estimate of $30 versus a current price of $20.50, driven by accelerating growth and robust fundamentals. FSLY posted Q1 2026 revenue of $173M (+20% YoY), security revenue up 47% YoY, net retention rate at 113%, and RPO up 63% YoY to $369M. Management raised 2026 revenue guidance to $710–$725M and EPS guidance by 15%, signaling fundamental earnings model reset and durable growth trajectory. Capex intensity (10–12% of 2026 revenue) introduces execution risk, but is viewed as a strategic investment to support future AI-driven edge and security demand. Read the full article on Seeking Alpha
EPAM
US$97.35
EPAM Systems
7D
-12.0%
1Y
-47.8%
OKTA
US$81.69
Okta
7D
5.8%
1Y
-34.2%
Narrative Update • May 09

OKTA: AI Agent Identity And Q4 Execution Will Drive Repricing

Narrative Update The analyst price target for Okta is now slightly lower at about $100. Many analysts cite mixed signals between strong Q4 execution, growing interest in Okta's role in securing AI agents, and sector wide multiple compression as the key drivers behind their revised assumptions.
IBM
US$223.55
International Business Machines
7D
-2.6%
1Y
-11.9%
TWLO
US$198.59
Twilio
7D
4.7%
1Y
78.6%
Analysis Article • May 08

The Strong Earnings Posted By Twilio (NYSE:TWLO) Are A Good Indication Of The Strength Of The Business

Twilio Inc. ( NYSE:TWLO ) recently posted some strong earnings, and the market responded positively. We have done some...
VRSN
US$286.47
VeriSign
7D
4.5%
1Y
2.5%
Seeking Alpha • May 07

VeriSign Stock Now Appears Fairly Priced

Summary VeriSign trades at reasonably high-20s earnings multiples, supported by strong margins and return on invested capital. VRSN's investment case hinges on whether generative AI is a threat or tailwind, with valuation sensitivity to AI-driven market perceptions. Growth from .com and .net is mature; future upside depends on AI-driven infrastructure demand and successful expansion into new domains. Near-term stock performance will be driven more by the AI narrative than by VRSN's earnings, presenting both opportunity and significant risk. Read the full article on Seeking Alpha
ACN
US$172.35
Accenture
7D
-4.3%
1Y
-46.5%
SNOW
US$151.50
Snowflake
7D
5.1%
1Y
-16.1%