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U.S. Software Industry Analysis

UpdatedFeb 04, 2026
DataAggregated Company Financials
Companies429
  • 7D-13.5%
  • 3M-23.0%
  • 1Y-11.1%
  • YTD-15.3%

Over the last 7 days, the Software industry has dropped 13%, driven by Microsoft declining 14%. In contrast, MMTec has gained 23%. Overall the industry is down 11% in 12 months. 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, 05 Feb 2026US$5.9tUS$661.3bUS$174.7b26.2x33.8x8.9x
Sat, 03 Jan 2026US$7.0tUS$645.3bUS$164.7b31.7x42.5x10.8x
Mon, 01 Dec 2025US$7.1tUS$640.4bUS$161.2b31.8x44x11.1x
Wed, 29 Oct 2025US$8.0tUS$621.6bUS$152.0b34.3x52.5x12.8x
Fri, 26 Sep 2025US$7.8tUS$620.9bUS$151.9b36x51.4x12.6x
Sun, 24 Aug 2025US$7.4tUS$615.8bUS$150.8b35x49x12x
Tue, 22 Jul 2025US$7.5tUS$596.3bUS$130.8b43.6x57.3x12.6x
Thu, 19 Jun 2025US$7.1tUS$598.9bUS$131.1b41x53.9x11.8x
Sat, 17 May 2025US$6.7tUS$591.1bUS$131.4b34.9x51.1x11.4x
Mon, 14 Apr 2025US$5.7tUS$581.3bUS$131.8b29.3x42.9x9.7x
Wed, 12 Mar 2025US$5.7tUS$583.2bUS$130.1b30.6x43.9x9.8x
Fri, 07 Feb 2025US$6.5tUS$586.1bUS$131.8b41.9x49.6x11.1x
Sun, 05 Jan 2025US$6.4tUS$569.1bUS$129.0b40.3x49.9x11.3x
Tue, 03 Dec 2024US$6.5tUS$566.8bUS$127.5b42.2x51.2x11.5x
Thu, 31 Oct 2024US$6.2tUS$552.9bUS$124.3b38.4x49.9x11.2x
Sat, 28 Sep 2024US$6.1tUS$552.4bUS$124.0b38.7x48.8x11x
Mon, 26 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.8x10.6x
Wed, 24 Jul 2024US$5.9tUS$531.1bUS$118.4b41.1x49.8x11.1x
Fri, 21 Jun 2024US$5.9tUS$531.3bUS$118.0b40.2x49.7x11x
Sun, 19 May 2024US$5.3tUS$474.3bUS$104.9b45.1x51x11.3x
Tue, 16 Apr 2024US$5.3tUS$466.3bUS$98.4b41.1x54.2x11.4x
Thu, 14 Mar 2024US$5.4tUS$470.1bUS$98.5b46.6x55.2x11.6x
Sat, 10 Feb 2024US$5.5tUS$464.2bUS$90.0b42.7x61.1x11.8x
Mon, 08 Jan 2024US$5.0tUS$486.2bUS$82.8b45.1x60.3x10.3x
Wed, 06 Dec 2023US$5.0tUS$485.3bUS$82.3b44.7x61x10.3x
Fri, 03 Nov 2023US$4.6tUS$485.3bUS$79.7b43.3x57.5x9.4x
Sun, 01 Oct 2023US$4.4tUS$477.3bUS$73.4b44.8x59.9x9.2x
Tue, 29 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Thu, 27 Jul 2023US$4.6tUS$465.5bUS$63.6b47.9x71.9x9.8x
Sat, 24 Jun 2023US$4.4tUS$460.5bUS$62.3b44x70.8x9.6x
Mon, 22 May 2023US$4.2tUS$457.4bUS$61.0b39.9x68.1x9.1x
Wed, 19 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x65x8.7x
Fri, 17 Mar 2023US$3.8tUS$453.7bUS$60.3b42.1x62.7x8.3x
Sun, 12 Feb 2023US$3.6tUS$437.0bUS$57.8b42.8x62.6x8.3x
Price to Earnings Ratio

62.6x


Total Market Cap: US$3.6tTotal Earnings: US$57.8bTotal Revenue: US$437.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.5x202420252026
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 34.9x which is lower than its 3-year average PE of 54.5x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 9.2x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 45% 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 Market-1.35%
Tech-5.09%
Software-13.49%
Application Software-13.10%
Systems Software-13.66%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 3.4x.
    • Analysts are expecting annual earnings growth of 22.9%, which is lower than the prior year's growth of 30.7% 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.
  • However this is lower than its past earnings growth rate of 31% 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
DLB Dolby LaboratoriesUS$64.485.4%
+US$332.2m		-23.6%PE25.6x
EGHT 8x8US$2.4442.7%
+US$101.2m		-9.3%PS0.5x
AGYS AgilysysUS$86.881.4%
+US$33.8m		-1.4%PE80x
CCSI Consensus Cloud SolutionsUS$23.026.6%
+US$27.0m		-18.0%PE5.3x
MTC MMTecUS$3.4922.0%
+US$15.9m		132.7%PS32.9x

Latest News

CRM
US$199.44
Salesforce
7D
-12.5%
1Y
-42.7%
EGHT
US$2.44
8x8
7D
42.7%
1Y
-9.3%
ORCL
US$146.67
Oracle
7D
-15.1%
1Y
-14.6%
NOW
US$111.07
ServiceNow
7D
-14.3%
1Y
-45.9%

ServiceNow, Inc.'s (NYSE:NOW) Stock Retreats 26% But Earnings Haven't Escaped The Attention Of Investors

Feb 04
ServiceNow, Inc.'s (NYSE:NOW) Stock Retreats 26% But Earnings Haven't Escaped The Attention Of Investors
DLB
US$64.48
Dolby Laboratories
7D
5.4%
1Y
-23.6%
SNPS
US$418.98
Synopsys
7D
-18.1%
1Y
-20.7%
PLTR
US$139.54
Palantir Technologies
7D
-11.3%
1Y
37.7%
FATN
US$2.69
FatPipe
7D
40.1%
1Y
n/a
INTU
US$445.64
Intuit
7D
-17.3%
1Y
-24.2%
APP
US$387.34
AppLovin
7D
-28.6%
1Y
5.2%

APP: Ongoing Buybacks And Rich Margins Will Likely Keep Shares Rangebound

Analysts now see lower upside for AppLovin, trimming their price expectations from about US$544.25 to roughly US$530.78, citing updated assumptions around discount rates, revenue growth, profit margins, and future P/E levels. What's in the News AppLovin issued earnings guidance for the fourth quarter of 2025, with expected revenue in a range of US$1,570m to US$1,600m.
AGYS
US$86.88
Agilysys
7D
1.4%
1Y
-1.4%
MSFT
US$414.19
Microsoft
7D
-4.5%
1Y
-0.4%
DJCO
US$576.86
Daily Journal
7D
1.4%
1Y
41.9%
AUID
US$1.68
authID
7D
17.5%
1Y
-75.3%
CCSI
US$23.02
Consensus Cloud Solutions
7D
6.6%
1Y
-18.0%
MTC
US$3.49
MMTec
7D
22.0%
1Y
132.7%