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U.S. IT Industry Analysis

UpdatedSep 11, 2026
DataAggregated Company Financials
Companies122
  • 7D-3.5%
  • 3M5.5%
  • 1Y0.3%
  • YTD-3.9%

Over the last 7 days, the IT industry has dropped 3.5%, driven by a pullback from Shopify of 13%. In contrast, Cloudflare has gained 9.4%. As for the longer term, the industry's performance has been flat for the past year. Earnings are forecast to grow by 22% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 11 Sep 2026US$1.0tUS$265.3bUS$21.1b20.6x47.5x3.8x
Sun, 09 Aug 2026US$1.0tUS$262.9bUS$20.7b19x49.5x3.9x
Tue, 07 Jul 2026US$924.9bUS$260.6bUS$20.2b18.6x45.8x3.5x
Thu, 04 Jun 2026US$1.1tUS$259.5bUS$20.1b19.6x52.5x4.1x
Sat, 02 May 2026US$830.1bUS$261.7bUS$21.8b21x38.1x3.2x
Mon, 30 Mar 2026US$814.8bUS$259.6bUS$21.6b19.3x37.8x3.1x
Wed, 25 Feb 2026US$811.9bUS$256.7bUS$21.7b20.1x37.5x3.2x
Fri, 23 Jan 2026US$1.0tUS$252.7bUS$19.8b27.8x51.2x4x
Sun, 21 Dec 2025US$1.1tUS$282.7bUS$20.9b29.8x52.5x3.9x
Tue, 18 Nov 2025US$1.0tUS$281.4bUS$20.8b26.9x50.4x3.7x
Thu, 16 Oct 2025US$1.1tUS$282.6bUS$20.0b32.7x53.6x3.8x
Sat, 13 Sep 2025US$1.0tUS$250.9bUS$19.3b29x51.9x4x
Mon, 11 Aug 2025US$958.2bUS$249.4bUS$19.5b28.8x49.2x3.8x
Wed, 09 Jul 2025US$1.0tUS$241.7bUS$17.3b29.7x59.1x4.2x
Fri, 06 Jun 2025US$979.9bUS$240.5bUS$17.1b29.2x57.4x4.1x
Sun, 04 May 2025US$857.7bUS$238.4bUS$17.0b36.3x50.4x3.6x
Tue, 01 Apr 2025US$864.9bUS$242.4bUS$18.4b35.1x46.9x3.6x
Thu, 27 Feb 2025US$955.7bUS$239.7bUS$18.2b39.6x52.6x4x
Sat, 25 Jan 2025US$892.4bUS$234.1bUS$16.3b43.5x54.7x3.8x
Mon, 23 Dec 2024US$880.0bUS$234.7bUS$16.7b40.9x52.7x3.7x
Wed, 20 Nov 2024US$826.9bUS$232.8bUS$16.4b44.8x50.5x3.6x
Fri, 18 Oct 2024US$828.0bUS$232.8bUS$17.8b46.6x46.6x3.6x
Sun, 15 Sep 2024US$773.2bUS$233.3bUS$17.5b35.5x44.1x3.3x
Tue, 13 Aug 2024US$721.4bUS$232.7bUS$17.5b30.6x41.2x3.1x
Thu, 11 Jul 2024US$711.2bUS$236.9bUS$17.2b26.6x41.4x3x
Sat, 08 Jun 2024US$681.1bUS$237.2bUS$17.3b26.8x39.5x2.9x
Mon, 06 May 2024US$728.5bUS$236.9bUS$16.0b23.7x45.4x3.1x
Wed, 03 Apr 2024US$777.1bUS$227.8bUS$13.8b25.9x56.2x3.4x
Fri, 01 Mar 2024US$826.5bUS$227.7bUS$14.3b21.3x57.7x3.6x
Sun, 28 Jan 2024US$832.2bUS$230.1bUS$13.4b23.3x62.3x3.6x
Tue, 26 Dec 2023US$791.8bUS$229.5bUS$12.8b20.8x61.8x3.4x
Thu, 23 Nov 2023US$726.4bUS$228.5bUS$12.7b20.7x57.2x3.2x
Sat, 21 Oct 2023US$637.1bUS$227.2bUS$6.5b18.8x98.5x2.8x
Mon, 18 Sep 2023US$689.0bUS$226.6bUS$6.8b23.7x101.5x3x
Price to Earnings Ratio

101.5x


Total Market Cap: US$689.0bTotal Earnings: US$6.8bTotal Revenue: US$226.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 52.1x202420252026
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 47.5x which is lower than its 3-year average PE of 52.1x.
  • 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 46% per year over the last three years.
  • Revenues for these companies have grown 5.4% 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 Market-2.20%
Tech-1.40%
IT-3.46%
IT Consulting-3.42%
Internet Services and Infrastructure-3.49%
Data Processing Services-7.13%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above its 3-year average PE ratio of 28.0x.
    • Analysts expect its future annual earnings growth (14.3%) to be largely in line with prior year's earnings growth.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 31% over the next 5 years.
  • However this is lower than its past earnings growth rate of 81% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.0% 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
NET CloudflareUS$311.179.4%
+US$9.5b		38.5%PS44.1x
DOCN DigitalOcean HoldingsUS$131.0519.8%
+US$2.5b		258.5%PE65.5x
CRWV CoreWeaveUS$89.125.4%
+US$2.5b		-20.9%PS6.5x
FSLY FastlyUS$22.717.5%
+US$253.3m		187.8%PS5.3x
MGRT Mega FortuneUS$120.7011.8%
+US$174.8m		3,329.0%PE928x

Latest News

NET
US$311.17
Cloudflare
7D
9.4%
1Y
38.5%
Seeking Alpha • 6h

Cloudflare Is Flying Too High, Time To Sell

Summary Cloudflare (NET) is rated Sell with a $262 price target, citing overvaluation despite strong fundamentals and recent 60% YTD rally. NET’s growth drivers include rising internet complexity, AI-driven cybersecurity demand, and high recurring revenue, but current multiples require 40-50% top-line growth to justify. Guidance remains conservative, with expected 34% revenue and 41% EPS growth, yet margins have not meaningfully expanded and free cash flow remains thin. Valuation metrics (225x forward earnings, 143.9x EV/EBITDA) far exceed peers, exposing NET to downside risk if growth does not accelerate further. Read the full article on Seeking Alpha
AKAM
US$107.13
Akamai Technologies
7D
0.6%
1Y
35.3%
CRWV
US$89.12
CoreWeave
7D
5.4%
1Y
-20.9%
MDB
US$373.87
MongoDB
7D
-2.8%
1Y
12.6%
SHOP
US$126.60
Shopify
7D
-13.2%
1Y
-12.7%
ACN
US$177.91
Accenture
7D
-7.9%
1Y
-27.1%
SNOW
US$329.72
Snowflake
7D
-7.5%
1Y
46.8%
Narrative Update • Sep 10

SNOW: AI Consumption Flywheel Should Support Long-Term Earnings Power

Snowflake's analyst fair value estimate has moved sharply higher from about $293 to roughly $413 as analysts respond to stronger Q2 results, raised guidance, and growing conviction that the company's AI products are reinforcing its consumption based revenue model. Analyst Commentary Recent Street research on Snowflake points to a broadly constructive view following the latest Q2 results, with many institutions lifting price targets and highlighting the role of AI products in supporting the company’s consumption model and revenue outlook.
TWLO
US$231.13
Twilio
7D
-3.9%
1Y
125.4%
Narrative Update • Sep 10

TWLO: Elevated AI Hype And Rich P/E Will Pressure Future Returns

Twilio's analyst fair value estimate has been raised from $167.56 to $182.27 as analysts respond to a series of higher price targets following a strong Q2, accelerating organic growth across messaging and voice, and growing confidence in the company's AI driven product opportunity. Analyst Commentary Street research on Twilio has shifted more constructive after Q2, with a series of higher price targets and supportive comments around organic growth in messaging and voice, as well as the pipeline for AI driven products.
GDDY
US$96.37
GoDaddy
7D
-7.0%
1Y
-35.1%
Narrative Update • Sep 09

GDDY: AI Search And Legal Fallout Will Pressure Promotional Pricing

Analysts have trimmed their fair value estimate for GoDaddy to $76 from $80, reflecting slightly softer revenue growth assumptions, a modestly lower future P/E, and rising concern that higher domain pricing and a slower applications and commerce ramp could weigh on market share and near term top line momentum as AI led search discovery reshapes customer acquisition. Analyst Commentary Recent research on GoDaddy shows a clear tilt toward more cautious views, with several firms revising ratings and price targets lower following the latest quarterly updates and product transition commentary.
DOCN
US$131.05
DigitalOcean Holdings
7D
19.8%
1Y
258.5%
CTSH
US$58.32
Cognizant Technology Solutions
7D
-9.8%
1Y
-17.3%
SHAZ
US$56.57
SharonAI Holdings
7D
2.9%
1Y
2.9%
FSLY
US$22.71
Fastly
7D
7.5%
1Y
187.8%
IT
US$170.62
Gartner
7D
-12.7%
1Y
-29.2%
Narrative Update • Sep 03

IT: AI Adoption And Security Headwinds Will Pressure Contract Value And Buybacks

Analysts have raised their price target for Gartner to $150 from $126 to reflect updated views on fair value, discount rate, expected revenue growth, profit margins, and future P/E assumptions. What’s in the News for Gartner Gartner reports that only 22% of organizations have successfully scaled AI across multiple business units or adopted an AI first approach, while 85% of functional leaders plan to raise AI spending in 2026 and allocate an average of 12% of their budgets to AI in 2025.
OKTA
US$171.11
Okta
7D
0.4%
1Y
86.1%
Narrative Update • Sep 03

OKTA: Elevated AI Identity Hopes Will Likely Outpace Real Demand

Okta's fair value estimate in this framework has moved from $88.17 to $147.54 as analysts lift price targets across the board, citing stronger identity security demand, early traction in AI agent workloads, and broadly supportive cybersecurity spending checks. Analyst Commentary Recent research on Okta points to a clear shift toward more optimistic targets, with a long list of firms lifting their price objectives and turning more constructive on identity security and AI agent use cases.
MGRT
US$120.70
Mega Fortune
7D
11.8%
1Y
3,329.0%