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U.S. Software Industry Analysis

UpdatedFeb 12, 2026
DataAggregated Company Financials
Companies430
  • 7D1.5%
  • 3M-22.3%
  • 1Y-13.2%
  • YTD-17.3%

In the last week, the Software industry is up 1.5%, with Microsoft up 2.7%. Meanwhile, Salesforce actually underperformed within the industry, shrinking 7.2% in the last week. In contrast, the industry has lost 13% in the last 12 months. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 12 Feb 2026US$5.8tUS$663.0bUS$162.4b27.1x35.8x8.8x
Sat, 10 Jan 2026US$7.0tUS$648.9bUS$165.0b32.6x42.5x10.8x
Mon, 08 Dec 2025US$7.2tUS$641.9bUS$162.0b31.5x44.7x11.3x
Wed, 05 Nov 2025US$7.8tUS$637.6bUS$159.0b35.2x48.8x12.2x
Fri, 03 Oct 2025US$7.8tUS$621.4bUS$151.8b35.6x51.6x12.6x
Sun, 31 Aug 2025US$7.4tUS$616.6bUS$150.8b35.9x49x12x
Tue, 29 Jul 2025US$7.6tUS$597.2bUS$130.9b46.6x57.8x12.7x
Thu, 26 Jun 2025US$7.2tUS$599.0bUS$131.1b42.2x55x12x
Sat, 24 May 2025US$6.7tUS$593.0bUS$131.7b35.3x50.7x11.3x
Mon, 21 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.6x9.4x
Wed, 19 Mar 2025US$5.9tUS$582.8bUS$131.2b28.2x45.1x10.1x
Fri, 14 Feb 2025US$6.5tUS$588.2bUS$131.9b42.3x49.4x11.1x
Sun, 12 Jan 2025US$6.3tUS$569.1bUS$129.3b38.8x48.3x11x
Tue, 10 Dec 2024US$6.9tUS$566.7bUS$128.2b43.6x53.5x12.1x
Thu, 07 Nov 2024US$6.1tUS$562.1bUS$126.3b39.4x48x10.8x
Sat, 05 Oct 2024US$5.9tUS$551.7bUS$124.1b38.8x47.7x10.7x
Mon, 02 Sep 2024US$5.8tUS$551.5bUS$122.1b38.3x47.8x10.6x
Wed, 31 Jul 2024US$5.8tUS$532.0bUS$117.8b40x48.8x10.8x
Fri, 28 Jun 2024US$5.9tUS$531.0bUS$118.1b40.5x50.2x11.2x
Sun, 26 May 2024US$5.4tUS$475.8bUS$105.8b42.2x50.8x11.3x
Tue, 23 Apr 2024US$5.0tUS$466.6bUS$98.4b43.1x51.3x10.8x
Thu, 21 Mar 2024US$5.4tUS$465.8bUS$98.0b44.5x55x11.6x
Sat, 17 Feb 2024US$5.4tUS$465.2bUS$90.9b42.6x59x11.5x
Mon, 15 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Wed, 13 Dec 2023US$5.1tUS$485.6bUS$82.5b47.4x61.9x10.5x
Fri, 10 Nov 2023US$4.8tUS$481.8bUS$79.2b42.5x60.2x9.9x
Sun, 08 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Tue, 05 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Thu, 03 Aug 2023US$4.5tUS$466.4bUS$65.9b44.7x67.9x9.6x
Sat, 01 Jul 2023US$4.5tUS$460.6bUS$62.2b45.3x72.4x9.8x
Mon, 29 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Wed, 26 Apr 2023US$3.7tUS$453.8bUS$60.6b42x61.9x8.3x
Fri, 24 Mar 2023US$3.8tUS$453.7bUS$59.8b42.2x63.5x8.4x
Sun, 19 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Price to Earnings Ratio

61.7x


Total Market Cap: US$3.6tTotal Earnings: US$58.1bTotal Revenue: US$437.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.3x202420252026
Current Industry PE
  • Investors are pessimistic on the American Software 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 35.8x which is lower than its 3-year average PE of 54.3x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.8x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 41% per year over the last three years.
  • Revenues for these companies have grown 15% 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 Market1.43%
Tech4.94%
Software1.47%
Systems Software2.61%
Application Software-1.03%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 5.6x.
    • Analysts are expecting annual earnings growth of 23.3%, which is higher than its past year's earnings growth of 17.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 40.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 23% over the next 5 years.
  • This is better than its past earnings growth rate of 18% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 16% 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
MSFT MicrosoftUS$404.372.7%
+US$79.5b		-1.5%PE25.2x
ORCL OracleUS$157.167.2%
+US$30.1b		-8.7%PE29.3x
APP AppLovinUS$456.8117.9%
+US$23.5b		20.1%PE52.9x
CDNS Cadence Design SystemsUS$299.6510.4%
+US$7.7b		1.9%PE76.9x
MSTR StrategyUS$126.0717.8%
+US$6.3b		-61.2%PS87.8x

Latest News

MSFT
US$404.37
Microsoft
7D
2.7%
1Y
-1.5%
WDAY
US$144.55
Workday
7D
-15.0%
1Y
-44.0%
CRM
US$185.00
Salesforce
7D
-7.2%
1Y
-43.3%
INTU
US$399.69
Intuit
7D
-8.1%
1Y
-31.5%
CDNS
US$299.65
Cadence Design Systems
7D
10.4%
1Y
1.9%
DDOG
US$127.33
Datadog
7D
10.0%
1Y
-14.0%
ORCL
US$157.16
Oracle
7D
7.2%
1Y
-8.7%
APP
US$456.81
AppLovin
7D
17.9%
1Y
20.1%
FTNT
US$87.82
Fortinet
7D
8.3%
1Y
-18.5%
TEAM
US$86.97
Atlassian
7D
-17.2%
1Y
-72.7%
MSTR
US$126.07
Strategy
7D
17.8%
1Y
-61.2%
SNPS
US$438.21
Synopsys
7D
4.6%
1Y
-14.0%

SNPS: NVIDIA Alliance Will Drive AI Shift For Undervalued IP Business

Analysts have trimmed their outlook on Synopsys, cutting the price target to $520 from $602 as they factor in potential headwinds to the company’s $1.75b intellectual property business. These concerns stem from engineering and fabrication capacity shifting toward AI and high performance data center chips and away from consumer designs.
PLTR
US$135.68
Palantir Technologies
7D
-2.8%
1Y
15.6%

Need To Know: Analysts Are Much More Bullish On Palantir Technologies Inc. (NASDAQ:PLTR)

Feb 06
Need To Know: Analysts Are Much More Bullish On Palantir Technologies Inc. (NASDAQ:PLTR)
NOW
US$100.58
ServiceNow
7D
-9.4%
1Y
-48.8%

We Like ServiceNow's (NYSE:NOW) Earnings For More Than Just Statutory Profit

Feb 05
We Like ServiceNow's (NYSE:NOW) Earnings For More Than Just Statutory Profit
ROP
US$333.80
Roper Technologies
7D
-7.2%
1Y
-41.1%

ROP: Recurring Software Cash Flows And Buybacks Will Support Future Compounding

Analysts have trimmed their fair value estimate for Roper Technologies from about $548 to roughly $462, reflecting lower assumed revenue growth, a slightly higher discount rate, and a more conservative future P/E outlook across multiple recent price target cuts. Analyst Commentary Recent research on Roper Technologies has become more cautious, with several firms cutting price targets and some moving to more neutral or negative ratings.
ADBE
US$257.16
Adobe
7D
-8.1%
1Y
-44.4%

ADBE: AI Transition And Semrush Deal Will Reshape Future Cash Flows

Analysts have trimmed their fair value estimate for Adobe slightly, to about $576 per share. They cite a wave of recent downgrades and reduced price targets that reflect concerns about limited near term upside, competitive pressure in creative tools, and uncertainty over how much the current AI transition will benefit the business.