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U.S. Software Industry Analysis

UpdatedFeb 20, 2026
DataAggregated Company Financials
Companies426
  • 7D0.2%
  • 3M-17.6%
  • 1Y-14.5%
  • YTD-18.3%

Over the last 7 days, the Software industry has remained flat, although notably AppLovin gained 12%. Unfortunately though, the industry is down 14% over the past 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
Fri, 20 Feb 2026US$5.7tUS$660.9bUS$163.6b25.8x34.6x8.6x
Sun, 18 Jan 2026US$6.7tUS$648.9bUS$159.8b31.6x41.9x10.3x
Tue, 16 Dec 2025US$7.1tUS$645.9bUS$164.8b32.4x43.2x11x
Thu, 13 Nov 2025US$7.5tUS$640.5bUS$158.5b32.1x47.4x11.7x
Sat, 11 Oct 2025US$7.9tUS$621.4bUS$151.7b34.8x52x12.7x
Mon, 08 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.2x11.8x
Wed, 06 Aug 2025US$7.6tUS$610.7bUS$147.7b38.9x51.7x12.5x
Fri, 04 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Sun, 01 Jun 2025US$6.8tUS$594.2bUS$131.7b36.8x51.4x11.4x
Tue, 29 Apr 2025US$5.9tUS$581.3bUS$131.8b31.7x45x10.2x
Thu, 27 Mar 2025US$6.1tUS$582.2bUS$131.6b29x46.1x10.4x
Sat, 22 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Mon, 20 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.8x11.3x
Wed, 18 Dec 2024US$6.8tUS$569.1bUS$128.8b42x52.8x12x
Fri, 15 Nov 2024US$6.5tUS$566.7bUS$127.0b42.2x51.3x11.5x
Sun, 13 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Tue, 10 Sep 2024US$5.7tUS$551.3bUS$123.1b35.7x46.1x10.3x
Thu, 08 Aug 2024US$5.4tUS$547.6bUS$121.7b37x44.7x9.9x
Sat, 06 Jul 2024US$6.1tUS$530.5bUS$118.1b40.9x51.6x11.5x
Mon, 03 Jun 2024US$5.1tUS$476.0bUS$106.9b39.8x47.8x10.7x
Wed, 01 May 2024US$5.0tUS$476.8bUS$102.4b42.2x48.7x10.5x
Fri, 29 Mar 2024US$5.4tUS$465.9bUS$98.2b45.1x55.1x11.6x
Sun, 25 Feb 2024US$5.3tUS$466.5bUS$93.1b43.9x57.1x11.4x
Tue, 23 Jan 2024US$5.4tUS$486.2bUS$82.1b46.8x65.7x11.1x
Thu, 21 Dec 2023US$5.2tUS$486.1bUS$82.9b43.9x62.2x10.6x
Sat, 18 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x62x10.3x
Mon, 16 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Wed, 13 Sep 2023US$4.7tUS$476.3bUS$73.0b45x64.2x9.8x
Fri, 11 Aug 2023US$4.4tUS$473.0bUS$69.9b45.7x63.4x9.4x
Sun, 09 Jul 2023US$4.5tUS$460.7bUS$60.4b47x73.8x9.7x
Tue, 06 Jun 2023US$4.4tUS$459.8bUS$62.0b42.4x70.9x9.6x
Thu, 04 May 2023US$3.9tUS$453.6bUS$61.2b39.8x63.8x8.6x
Sat, 01 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.5x8.7x
Mon, 27 Feb 2023US$3.5tUS$438.0bUS$58.9b42.3x59x7.9x
Price to Earnings Ratio

59x


Total Market Cap: US$3.5tTotal Earnings: US$58.9bTotal Revenue: US$438.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.1x202420252026
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 34.6x which is lower than its 3-year average PE of 54.1x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.6x.
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 Market0.64%
Tech0.58%
Software0.19%
Application Software2.39%
Systems Software-0.72%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 8.0x.
    • Analysts are expecting annual earnings growth of 22.5%, which is higher than its past year's earnings growth of 20.0% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 40.1x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 22% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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
APP AppLovinUS$412.0012.3%
+US$15.3b		-8.4%PE40.6x
PLTR Palantir TechnologiesUS$134.894.5%
+US$14.8b		26.9%PE198.5x
PANW Palo Alto NetworksUS$150.99-7.3%
US$9.7b		-24.1%PE96.1x
NBIS Nebius GroupUS$107.6119.9%
+US$4.5b		132.7%PE938.9x
NOW ServiceNowUS$107.374.0%
+US$4.3b		-44.5%PE64.3x

Latest News

SNPS
US$442.44
Synopsys
7D
4.5%
1Y
-10.4%
PANW
US$150.99
Palo Alto Networks
7D
-7.3%
1Y
-24.1%
FIG
US$25.86
Figma
7D
17.4%
1Y
n/a
TEAM
US$80.26
Atlassian
7D
-7.2%
1Y
-73.1%
FTNT
US$81.67
Fortinet
7D
-3.1%
1Y
-28.5%
CRWD
US$422.14
CrowdStrike Holdings
7D
2.6%
1Y
-3.2%

CRWD: Future Performance Will Reflect AI Security Leadership And Expanding Identity Platform

Narrative Update: CrowdStrike Holdings The updated analyst price target for CrowdStrike edges higher to about $547 from roughly $533, as analysts factor in slightly stronger modeled revenue growth and profit margins, along with a more moderate future P/E assumption and mixed, but generally constructive, Street research around AI security positioning and recent rating changes. Analyst Commentary Recent research on CrowdStrike gives you a mixed but generally constructive picture, with several firms adjusting price targets and ratings as they reassess AI risk, software multiples, and security spending trends.
MSFT
US$398.46
Microsoft
7D
-0.7%
1Y
-2.4%

MSFT: AI Self Sufficiency And Global Data Center Expansion Will Sustain Cloud Leadership

Our analyst price target for Microsoft has been nudged lower by a few dollars to reflect a slightly reduced fair value estimate of about $596, as analysts balance ongoing enthusiasm around AI driven capital spending with a wave of recent target trims. These largely stem from valuation discipline and concerns that prior long term assumptions, including P/E and margin expectations, may have been set too high.
ADBE
US$259.21
Adobe
7D
-1.3%
1Y
-43.0%

ADBE: AI Transition And Creative Ecosystem Partnerships Will Reshape Future Cash Flows

Our fair value estimate for Adobe has edged higher to $580.27 from $575.83 as analysts broadly reduce price targets and ratings in response to softer Digital Media growth expectations, questions about the durability of the competitive moat, and concerns that AI benefits may be slower to show up in revenue and margins than previously hoped. Analyst Commentary Recent Street research on Adobe has tilted more cautious, with several firms cutting ratings and price targets as they reassess Digital Media growth expectations, competition, and the timing of AI monetization.
APP
US$412.00
AppLovin
7D
12.3%
1Y
-8.4%

APP: Higher 2026 Revenue Outlook And Rich Margins Will Support Upside Potential

Analysts have adjusted their price target on AppLovin to $476.89 from $530.78, citing updated assumptions around revenue growth, profit margins, and future P/E multiples. What's in the News AppLovin issued new earnings guidance for the first quarter of 2026, setting expected total revenue in a range of US$1.745b to US$1.775b (Key Developments).
NBIS
US$107.61
Nebius Group
7D
19.9%
1Y
132.7%

NBIS: Microsoft Contract And 2.5GW Power Sourcing Will Support Future Capacity

Analysts have kept their Nebius Group price target steady at $211, but are now using slightly higher discount rates and a richer future P/E of about 34x. This reflects a mix of bullish views on the Microsoft contract, cautious revenue and margin assumptions, and a wide range of initial ratings from neutral to top pick calls.
DDOG
US$120.60
Datadog
7D
-4.4%
1Y
-4.5%
NOW
US$107.37
ServiceNow
7D
4.0%
1Y
-44.5%

NOW: AI Partnerships And Share Repurchases Will Drive Future Upside

Analysts have trimmed their price target on ServiceNow to about $189 from roughly $226, citing updated assumptions that include slightly lower discount rates, a future P/E of about 62.5, and revised expectations for revenue growth and profit margins that they believe better reflect the company’s current risk and return profile. What's in the News Kearney and ServiceNow formed a partnership around the ServiceNow AI Platform to support enterprise-wide business process reengineering, targeting gains in operational efficiency, workflow speed, and AI driven process orchestration across functions such as sales, operations, and IT (Key Developments).
PLTR
US$134.89
Palantir Technologies
7D
4.5%
1Y
26.9%
WDAY
US$140.02
Workday
7D
-2.8%
1Y
-46.5%
INTU
US$381.54
Intuit
7D
-4.1%
1Y
-34.1%
GEN
US$22.34
Gen Digital
7D
-5.1%
1Y
-18.2%

Gen Digital (NASDAQ:GEN) Is Paying Out A Dividend Of $0.125

Feb 09
Gen Digital (NASDAQ:GEN) Is Paying Out A Dividend Of $0.125