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U.S. IT Industry Analysis

UpdatedAug 07, 2026
DataAggregated Company Financials
Companies122
  • 7D7.6%
  • 3M13.6%
  • 1Y1.7%
  • YTD-4.0%

The IT industry is up 7.6% in the last week, with Shopify up 20%. In the same time, GoDaddy was down 9.0%. The industry has been flat over the past 12 months despite the gain this week. Earnings are forecast to grow by 23% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 07 Aug 2026US$996.7bUS$262.3bUS$20.3b18.6x49x3.8x
Sun, 05 Jul 2026US$924.8bUS$260.6bUS$20.2b16.6x45.7x3.5x
Tue, 02 Jun 2026US$988.6bUS$259.4bUS$20.1b20.6x49.1x3.8x
Thu, 30 Apr 2026US$831.9bUS$261.1bUS$21.7b20.4x38.3x3.2x
Sat, 28 Mar 2026US$836.5bUS$259.5bUS$21.6b19.3x38.8x3.2x
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
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 53.7x202420252026
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 49.0x which is lower than its 3-year average PE of 53.7x.
  • 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 45% 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 Market3.47%
Tech5.11%
IT7.63%
Internet Services and Infrastructure9.26%
IT Consulting5.21%
Data Processing Services3.88%
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 14.9%, which is lower than the prior year's growth of 19.0% per year.
Forecasted Growth
  • Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 33% over the next 5 years.
  • However this is lower than its past earnings growth rate of 63% per year.
  • In contrast, the IT Consulting industry is expected to see its earnings grow by 8.2% 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$147.4420.5%
+US$30.5b		-2.4%PE98.4x
IBM International Business MachinesUS$233.435.3%
+US$11.0b		-6.7%PE20.5x
SNOW SnowflakeUS$318.006.7%
+US$6.9b		54.1%PS21.9x
CRWV CoreWeaveUS$85.3315.5%
+US$6.2b		-29.5%PS7.5x
ACN AccentureUS$171.114.8%
+US$4.8b		-29.2%PE13.4x

Latest News

CMRC
US$2.32
Commerce.com
7D
-26.6%
1Y
-48.7%
SNOW
US$318.00
Snowflake
7D
6.7%
1Y
54.1%
IOND
US$58.65
Ionic Digital
7D
-16.2%
1Y
n/a
EPAM
US$93.07
EPAM Systems
7D
-10.2%
1Y
-41.0%
IBM
US$233.43
International Business Machines
7D
5.3%
1Y
-6.7%
SHOP
US$147.44
Shopify
7D
20.5%
1Y
-2.4%
Narrative Update • Aug 05

SHOP: AI Commerce Adoption And Buybacks Will Support Durable Upside Into 2026

Shopify's updated fair value estimate has increased to $160.59 from $148.22 as analysts raise price targets to a range of $175 to $192, citing broad-based growth across enterprise, international, and payments; faster AI-related adoption such as Sidekick; and a view that the platform remains well positioned in agentic commerce with solid defensibility against AI-driven software displacement. Analyst Commentary Recent research on Shopify shows a mix of optimism and caution as analysts refresh their models after the latest results and AI product updates.
CRWV
US$85.33
CoreWeave
7D
15.5%
1Y
-29.5%
VNET
US$7.01
VNET Group
7D
-4.2%
1Y
-14.0%
Narrative Update • Aug 05

VNET: AI Power Capacity And New Contracts Will Drive Future Upside

Analysts have trimmed their fair value estimate for VNET Group by about $0.53 to $8.19, as updated forecasts reflect a slightly lower future P/E alongside modest adjustments to growth and margin assumptions, while recent research notes continued interest in the stock supported by data center demand and AI related opportunities. Analyst Commentary on VNET Group Recent Street research on VNET Group highlights a mix of optimism around data center demand and AI related opportunities, alongside some more cautious points that readers should weigh carefully when thinking about valuation, execution and growth risks.
IT
US$184.82
Gartner
7D
20.9%
1Y
-19.5%
Narrative Update • Aug 05

IT: Higher Margins And Buybacks Should Support Fairly Valued Shares Over Time

Analysts have raised their price target for Gartner from $198.98 to $203.00. This reflects updated assumptions for revenue growth, profit margin and a slightly lower future P/E, which together result in a modestly stronger valuation view.
GDDY
US$90.35
GoDaddy
7D
-9.0%
1Y
-39.9%
MDB
US$370.00
MongoDB
7D
13.5%
1Y
62.4%
CTSH
US$56.89
Cognizant Technology Solutions
7D
5.6%
1Y
-17.7%
Narrative Update • Aug 04

CTSH: AI Bookings And Large Deal Volatility Will Pressure Future Repricing

The analyst price target for Cognizant Technology Solutions has been revised higher in this update, with the fair value estimate moving from $42.00 to about $44.28, as analysts factor in recent price target changes that cite better-than-feared Q2 results, solid large deal bookings, and improving peer group multiples. Analyst Commentary Recent research on Cognizant Technology Solutions shows a split picture.
ACN
US$171.11
Accenture
7D
4.8%
1Y
-29.2%
CSQR
US$20.07
Csquare
7D
-4.3%
1Y
n/a
BRUN
US$17.19
Boost Run
7D
-13.4%
1Y
66.6%
CHRN
US$20.25
ChronoScale Holdings
7D
-3.8%
1Y
544.9%