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

U.S. IT Industry Analysis

UpdatedAug 03, 2026
DataAggregated Company Financials
Companies123
  • 7D5.4%
  • 3M1.5%
  • 1Y-1.8%
  • YTD-11.5%

In the last week, the IT industry is up 5.4%, with Accenture up 13%. During this same period, the GoDaddy underperformed, falling 11%. Despite this gain, the industry's performance has been flat over the past year. As for the next few years, earnings are expected to grow by 25% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 03 Aug 2026US$917.5bUS$261.4bUS$19.8b17.4x46.3x3.5x
Wed, 01 Jul 2026US$901.5bUS$260.6bUS$20.2b16.6x44.6x3.5x
Fri, 29 May 2026US$869.7bUS$259.2bUS$20.1b20.5x43.3x3.4x
Sun, 26 Apr 2026US$843.3bUS$261.1bUS$21.7b20.6x38.8x3.2x
Tue, 24 Mar 2026US$850.2bUS$259.6bUS$21.6b19.4x39.4x3.3x
Thu, 19 Feb 2026US$884.4bUS$256.5bUS$21.7b22.9x40.7x3.4x
Sat, 17 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.3x4.2x
Mon, 15 Dec 2025US$1.1tUS$282.0bUS$21.0b29.9x52.1x3.9x
Wed, 12 Nov 2025US$1.1tUS$281.0bUS$20.5b30.5x54.1x3.9x
Fri, 10 Oct 2025US$1.1tUS$282.2bUS$20.0b32.4x55.8x4x
Sun, 07 Sep 2025US$974.0bUS$250.9bUS$19.3b29.3x50.4x3.9x
Tue, 05 Aug 2025US$921.3bUS$243.5bUS$17.8b26.8x51.7x3.8x
Thu, 03 Jul 2025US$1.0tUS$241.7bUS$17.4b28.9x58.2x4.2x
Sat, 31 May 2025US$945.0bUS$240.3bUS$17.0b29x55.5x3.9x
Mon, 28 Apr 2025US$841.9bUS$242.4bUS$18.0b31.6x46.9x3.5x
Wed, 26 Mar 2025US$887.0bUS$240.8bUS$19.2b47.3x46.1x3.7x
Fri, 21 Feb 2025US$1.0tUS$239.6bUS$18.2b45.7x56.9x4.3x
Sun, 19 Jan 2025US$872.5bUS$234.1bUS$16.3b42.1x53.4x3.7x
Tue, 17 Dec 2024US$894.9bUS$233.2bUS$16.4b44.7x54.6x3.8x
Thu, 14 Nov 2024US$848.9bUS$232.6bUS$16.3b46.1x51.9x3.6x
Sat, 12 Oct 2024US$820.4bUS$232.9bUS$17.8b43.4x46.2x3.5x
Mon, 09 Sep 2024US$739.3bUS$233.3bUS$17.5b35.4x42.1x3.2x
Wed, 07 Aug 2024US$679.2bUS$232.5bUS$16.1b28.6x42.1x2.9x
Fri, 05 Jul 2024US$720.0bUS$237.0bUS$17.2b28.3x41.9x3x
Sun, 02 Jun 2024US$671.5bUS$237.1bUS$17.3b28.3x38.8x2.8x
Tue, 30 Apr 2024US$712.8bUS$228.0bUS$14.4b25x49.6x3.1x
Thu, 28 Mar 2024US$781.0bUS$227.7bUS$14.2b22.3x55.2x3.4x
Sat, 24 Feb 2024US$827.0bUS$227.5bUS$14.2b22x58.2x3.6x
Mon, 22 Jan 2024US$808.6bUS$229.4bUS$12.9b22x62.5x3.5x
Wed, 20 Dec 2023US$787.8bUS$229.5bUS$12.8b20.3x61.5x3.4x
Fri, 17 Nov 2023US$716.5bUS$228.4bUS$12.7b21.1x56.4x3.1x
Sun, 15 Oct 2023US$651.0bUS$227.2bUS$6.5b20.7x100.6x2.9x
Tue, 12 Sep 2023US$711.0bUS$226.6bUS$6.8b23.5x104.5x3.1x
Thu, 10 Aug 2023US$665.3bUS$226.0bUS$6.7b22.8x99.3x2.9x
Price to Earnings Ratio

99.3x


Total Market Cap: US$665.3bTotal Earnings: US$6.7bTotal Revenue: US$226.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 54x202420252026
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 46.3x which is lower than its 3-year average PE of 54.0x.
  • 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 44% per year over the last three years.
  • Revenues for these companies have grown 5.0% 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 Market0.85%
Tech0.87%
IT5.43%
IT Consulting7.39%
Data Processing Services4.25%
Internet Services and Infrastructure4.10%
Industry PE
  • Investors are most optimistic about the Data Processing Services industry which is trading above 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 37% 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 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
ACN AccentureUS$165.9212.9%
+US$11.6b		-35.0%PE13x
IBM International Business MachinesUS$223.654.4%
+US$8.9b		-10.6%PE19.7x
SNOW SnowflakeUS$293.289.4%
+US$8.7b		43.0%PS20.2x
NET CloudflareUS$278.986.4%
+US$6.0b		39.4%PS42.5x
CTSH Cognizant Technology SolutionsUS$55.3521.8%
+US$3.4b		-21.6%PE11.2x

Latest News

SHOP
US$117.15
Shopify
7D
-7.7%
1Y
-6.4%
GDDY
US$82.74
GoDaddy
7D
-11.2%
1Y
-47.1%
Seeking Alpha • Aug 02

GoDaddy: Not Exciting, But Cheap FCF Multiples Could Set Up A Rebound (Rating Upgrade)

Summary GoDaddy suffered a ~15% post-Q2 earnings drop, but the market reaction appears overdone given stable fundamentals. GDDY maintains high single-digit revenue growth and a low-30s adjusted EBITDA margin, supporting a Rule of 40 profile. Valuation is compelling at 2.6x EV/FY26 revenue and 7.5x EV/FY26 FCF, essentially pricing GDDY like a utility. I reset my rating to neutral, citing balanced risks: competitive pressures, debt-fueled buybacks, and resilient recurring revenue. Read the full article on Seeking Alpha
ACN
US$165.92
Accenture
7D
12.9%
1Y
-35.0%
CTSH
US$55.35
Cognizant Technology Solutions
7D
21.8%
1Y
-21.6%
Analysis Article • Aug 01

Analyst Estimates: Here's What Brokers Think Of Cognizant Technology Solutions Corporation (NASDAQ:CTSH) After Its Second-Quarter Report

The investors in Cognizant Technology Solutions Corporation 's ( NASDAQ:CTSH ) will be rubbing their hands together...
MDB
US$337.48
MongoDB
7D
13.2%
1Y
52.7%
Seeking Alpha • Jul 31

MongoDB: The Growth Inflection Is Emerging While The Stock Price Has Fallen

Summary MongoDB is the NoSQL category leader, with a visible growth inflection driven by AI-related use cases and rising market share above 45%. I recommend purchasing MDB shares at current levels due to underappreciated growth catalysts, attractive relative valuation (7x EV/S), and rising free cash flow margins. Recent results beat expectations: Q1 revenue grew 25%, Atlas revenues rose 29%, and new technologies like Vector Search and RAG are achieving accelerating adoption. Risks include sector rotation, execution with new sales leadership, and dependency on continued NoSQL and AI-driven demand, but the asset-light model and margin expansion support the thesis. Read the full article on Seeking Alpha
SNOW
US$293.28
Snowflake
7D
9.4%
1Y
43.0%
Seeking Alpha • Jul 31

Why Snowflake Stock's Rally May Be Running Out

Summary Snowflake Inc. stock has doubled in three months, driven by a successful pivot to AI-centric data solutions and robust revenue growth. SNOW delivered strong Q1 FY2027 results: 33.5% revenue growth, 126% net revenue retention, and a 12% adjusted EBIT margin, all beating consensus. I downgrade SNOW from Buy to Hold, citing overvaluation—current market cap exceeds fair value by ~18% even at a generous 15x FY2027 sales multiple. Despite operational excellence and AI-driven momentum, a limited margin of safety and downside risk on even modest revenue misses warrant portfolio caution. Read the full article on Seeking Alpha
CSQR
US$19.96
Csquare
7D
-12.3%
1Y
n/a
IBM
US$223.65
International Business Machines
7D
4.4%
1Y
-10.6%
CRWV
US$71.77
CoreWeave
7D
-0.2%
1Y
-31.1%
NET
US$278.98
Cloudflare
7D
6.4%
1Y
39.4%
Narrative Update • Jul 30

NET: AI And Edge Demand Will Continue To Outrun Sustainable Margin Execution

Cloudflare's fair value estimate has edged down to $150.47 from $155.03 as analysts raise Street price targets on the stock. They cite stronger AI driven demand for security, edge compute and developer services, along with sector wide multiple expansion.
TWLO
US$197.35
Twilio
7D
3.1%
1Y
62.9%
Narrative Update • Jul 29

TWLO: Elevated AI Hype Will Test Gross Profit And Margin Durability

Twilio's updated analyst price target framework now reflects a slightly lower fair value of $130.47, with analysts pointing to stronger organic growth and gross profit trends, improving margin expectations, and a somewhat higher discount rate as they recalibrate assumptions around the company’s AI driven customer engagement opportunity. Analyst Commentary Recent Street research on Twilio points to a generally constructive view on the stock, with many firms lifting price targets and highlighting progress in organic growth, gross profit trends, and AI driven customer engagement.
VRSN
US$290.02
VeriSign
7D
3.6%
1Y
9.3%
BRUN
US$20.04
Boost Run
7D
-7.8%
1Y
94.0%
SHAZ
US$48.25
SharonAI Holdings
7D
-25.6%
1Y
-2.5%
DOCN
US$117.50
DigitalOcean Holdings
7D
-4.9%
1Y
356.5%
Seeking Alpha • Jul 27

DigitalOcean: AI Revenue Is Pouring In, But Cash Flow Isn't Keeping Up - Strong Sell

Summary While DigitalOcean (DOCN) has shown strong revenue growth in recent quarters, I believe that this fact is overshadowing the reality that the stock is overvalued. DOCN is focusing heavily on AI spending, but this could ultimately create pressure on margins. Peers of DOCN can often be found at more attractive valuations. Currently, the stock is priced for a level of perfection that I believe should concern investors. Read the full article on Seeking Alpha
TDTH
US$2.33
Trident Digital Tech Holdings
7D
-21.0%
1Y
n/a