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U.S. IT Industry Analysis

UpdatedAug 05, 2026
DataAggregated Company Financials
Companies123
  • 7D7.2%
  • 3M10.2%
  • 1Y-0.4%
  • YTD-5.7%

Over the last 7 days, the IT industry has risen 7.2%, and Snowflake contributed the most with a gain of 17%. 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
Wed, 05 Aug 2026US$949.5bUS$261.4bUS$19.8b18.1x47.9x3.6x
Fri, 03 Jul 2026US$927.3bUS$260.6bUS$20.2b16.6x45.9x3.6x
Sun, 31 May 2026US$988.4bUS$259.4bUS$20.1b20.6x49.1x3.8x
Tue, 28 Apr 2026US$843.9bUS$261.1bUS$21.7b20.2x38.8x3.2x
Thu, 26 Mar 2026US$840.3bUS$259.5bUS$21.6b19.2x39x3.2x
Sat, 21 Feb 2026US$896.0bUS$256.7bUS$21.7b21.5x41.4x3.5x
Mon, 19 Jan 2026US$1.1tUS$252.7bUS$19.8b28.9x53.5x4.2x
Wed, 17 Dec 2025US$1.1tUS$282.2bUS$21.0b29.3x51.4x3.8x
Fri, 14 Nov 2025US$1.1tUS$280.8bUS$20.5b31.3x53.2x3.9x
Sun, 12 Oct 2025US$1.1tUS$282.5bUS$20.0b30.7x53.2x3.8x
Tue, 09 Sep 2025US$985.7bUS$250.9bUS$19.3b29.4x51x3.9x
Thu, 07 Aug 2025US$928.1bUS$244.2bUS$18.6b26.4x49.8x3.8x
Sat, 05 Jul 2025US$1.0tUS$241.7bUS$17.4b29.5x59.3x4.3x
Mon, 02 Jun 2025US$948.6bUS$240.3bUS$17.0b29x55.7x3.9x
Wed, 30 Apr 2025US$848.6bUS$242.4bUS$18.0b31x47.2x3.5x
Fri, 28 Mar 2025US$891.3bUS$242.7bUS$18.3b42.5x48.7x3.7x
Sun, 23 Feb 2025US$976.6bUS$239.7bUS$18.2b40.2x53.8x4.1x
Tue, 21 Jan 2025US$872.5bUS$234.1bUS$16.3b42.1x53.4x3.7x
Thu, 19 Dec 2024US$901.0bUS$233.2bUS$16.4b43.7x55x3.9x
Sat, 16 Nov 2024US$846.0bUS$232.7bUS$16.3b44.3x51.8x3.6x
Mon, 14 Oct 2024US$823.0bUS$232.9bUS$17.8b43.4x46.3x3.5x
Wed, 11 Sep 2024US$746.9bUS$233.2bUS$17.5b35.5x42.6x3.2x
Fri, 09 Aug 2024US$712.2bUS$232.9bUS$17.5b29x40.6x3.1x
Sun, 07 Jul 2024US$718.8bUS$236.9bUS$17.2b26.9x41.8x3x
Tue, 04 Jun 2024US$671.5bUS$237.1bUS$17.3b27.8x38.8x2.8x
Thu, 02 May 2024US$699.6bUS$228.0bUS$14.3b26.2x48.9x3.1x
Sat, 30 Mar 2024US$783.3bUS$227.8bUS$13.8b24.5x56.6x3.4x
Mon, 26 Feb 2024US$827.1bUS$227.5bUS$14.2b22x58.2x3.6x
Wed, 24 Jan 2024US$818.4bUS$229.4bUS$12.9b23.2x63.2x3.6x
Fri, 22 Dec 2023US$774.9bUS$229.5bUS$12.8b20.3x60.5x3.4x
Sun, 19 Nov 2023US$717.0bUS$228.4bUS$12.7b20.7x56.5x3.1x
Tue, 17 Oct 2023US$659.4bUS$227.2bUS$6.5b20.9x101.9x2.9x
Thu, 14 Sep 2023US$693.9bUS$226.6bUS$6.8b22.9x102.2x3.1x
Sat, 12 Aug 2023US$665.1bUS$226.3bUS$6.7b22.8x99.6x2.9x
Price to Earnings Ratio

99.6x


Total Market Cap: US$665.1bTotal Earnings: US$6.7bTotal Revenue: US$226.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. IT Industry Price to Earnings3Y Average 53.8x202420252026
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 47.9x which is lower than its 3-year average PE of 53.8x.
  • 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 44% per year over the last three years.
  • Revenues for these companies have grown 4.9% 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 Market4.85%
Tech9.52%
IT7.24%
Internet Services and Infrastructure9.41%
Data Processing Services5.06%
IT Consulting4.13%
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 36% 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
SNOW SnowflakeUS$316.7717.2%
+US$16.1b		53.9%PS21.8x
CRWV CoreWeaveUS$91.9036.6%
+US$13.4b		-17.8%PS8.1x
NET CloudflareUS$301.3314.1%
+US$13.2b		45.0%PS45.9x
IBM International Business MachinesUS$235.153.3%
+US$7.2b		-6.2%PE20.7x
MDB MongoDBUS$380.0422.3%
+US$5.6b		66.5%PS11.7x

Latest News

IT
US$185.79
Gartner
7D
19.2%
1Y
-23.8%
CRWV
US$91.90
CoreWeave
7D
36.6%
1Y
-17.8%
DOCN
US$128.89
DigitalOcean Holdings
7D
14.6%
1Y
270.3%
Seeking Alpha • 7h

DigitalOcean Affirms 50%+ Growth Acceleration In FY 2027, Buy The Dip

Summary DigitalOcean offers a compelling buy-the-dip opportunity as shares are down ~25% from YTD highs despite strong fundamentals. DOCN posted a Q2 beat-and-raise, lifting full-year revenue guidance to over 30% y/y growth, underscoring robust AI-native enterprise momentum. Recurring revenue and $1.1B ARR growing >10% sequentially position DOCN favorably versus chip stocks reliant on one-time sales. With >40% adjusted EBITDA margins and a net leverage ratio of 0.7x, DOCN combines profitability with financial flexibility for continued capacity investment. Read the full article on Seeking Alpha
SHOP
US$123.30
Shopify
7D
-4.5%
1Y
-20.4%
GDDY
US$89.09
GoDaddy
7D
-13.4%
1Y
-41.9%
MDB
US$380.04
MongoDB
7D
22.3%
1Y
66.5%
NET
US$301.33
Cloudflare
7D
14.1%
1Y
45.0%
Seeking Alpha • Aug 04

Three Things I Love About Cloudflare And Why I'm Stuck At Hold Anyway

Summary Cloudflare (NET) is fundamentally strong and well-positioned in AI and edge computing, but its valuation is prohibitively high. NET's robust growth—31.55% revenue growth, 73% gross margins, and expanding free cash flow—supports its business prospects, yet not its current price. Despite likely earnings beats, NET's extreme valuation (P/S ~42, non-GAAP PE ~276) risks post-earnings pullbacks if expectations aren't exceeded. I maintain a hold rating, awaiting a significant pullback or evidence NET can deliver the required >50% FCF growth to justify its valuation. Read the full article on Seeking Alpha
SNOW
US$316.77
Snowflake
7D
17.2%
1Y
53.9%
ACN
US$170.43
Accenture
7D
3.5%
1Y
-31.0%
CSQR
US$20.77
Csquare
7D
-4.2%
1Y
n/a
UIS
US$2.99
Unisys
7D
-12.8%
1Y
-26.0%
IBM
US$235.15
International Business Machines
7D
3.3%
1Y
-6.2%
TWLO
US$194.05
Twilio
7D
-0.1%
1Y
55.7%
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.
IOND
US$61.44
Ionic Digital
7D
-2.3%
1Y
n/a
MGRT
US$95.50
Mega Fortune
7D
-6.4%
1Y
3,170.5%
Analysis Article • Jul 16

We Ran A Stock Scan For Earnings Growth And Mega Fortune (NASDAQ:MGRT) Passed With Ease

It's common for many investors, especially those who are inexperienced, to buy shares in companies with a good story...
ATGL
US$8.00
Alpha Technology Group
7D
-10.9%
1Y
-60.0%