The global IT sector continues to outperform, driven by massive AI-related earnings growth and corporate capex. Unlike previous cycles, returns are largely fundamental-based, with valuation multiples actually compressing in the US and emerging markets.
Key Takeaways
- 1.Global IT equity returns are being driven by earnings growth rather than valuation expansion, particularly in the US and Emerging Markets.
- 2.The MSCI All Country World IT Index saw a 43% upward revision in forward earnings estimates during the 1Q26 earnings season.
- 3.Emerging Markets IT showed the most extreme earnings-driven rally, with gains of 182.7% supported by over 209% earnings growth.
Table of Contents
- THE CONTEXT
- THE DATA
- OUR VIEW
- TODAY'S DATA RELEASES
- Legal Notices
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Authors
Christian StockerEdoardo Campanella
Securities
MSCI All Country World IT IndexMSCI USA IT IndexMSCI EM IT Index
Themes
AI-fuelled profit boomEarnings-driven vs. Valuation-driven returnsSemiconductor structural demand
Regions
North AmericaEuropeGlobalUnited States