Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Software Industry Analysis

UpdatedDec 02, 2025
DataAggregated Company Financials
Companies419
  • 7D2.2%
  • 3M-4.4%
  • 1Y6.2%
  • YTD9.6%

The Software industry is up 2.2% in the last week, with Microsoft up 2.7%. This means that the industry has gained 6.2% over the past year. Earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 02 Dec 2025US$7.1tUS$640.4bUS$161.2b32x44x11.1x
Thu, 30 Oct 2025US$8.0tUS$622.3bUS$151.9b34.8x52.9x12.9x
Sat, 27 Sep 2025US$7.7tUS$620.9bUS$151.9b36x50.8x12.4x
Mon, 25 Aug 2025US$7.4tUS$615.8bUS$150.8b35x49x12x
Wed, 23 Jul 2025US$7.5tUS$596.6bUS$130.8b42.7x57.2x12.5x
Fri, 20 Jun 2025US$7.1tUS$599.0bUS$131.1b41x54x11.8x
Sun, 18 May 2025US$6.7tUS$591.1bUS$131.4b36x51.3x11.4x
Tue, 15 Apr 2025US$5.7tUS$581.3bUS$131.8b29.2x42.9x9.7x
Thu, 13 Mar 2025US$5.7tUS$582.9bUS$130.4b29.8x44x9.9x
Sat, 08 Feb 2025US$6.6tUS$586.2bUS$132.4b43.2x49.5x11.2x
Mon, 06 Jan 2025US$6.4tUS$569.1bUS$129.0b40.3x49.9x11.3x
Wed, 04 Dec 2024US$6.6tUS$566.9bUS$127.6b42.2x51.6x11.6x
Fri, 01 Nov 2024US$5.9tUS$562.0bUS$126.3b38.5x47x10.6x
Sun, 29 Sep 2024US$6.0tUS$552.4bUS$124.0b38.7x48.6x10.9x
Tue, 27 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.8x10.6x
Thu, 25 Jul 2024US$5.9tUS$531.2bUS$118.4b39.7x50.1x11.2x
Sat, 22 Jun 2024US$5.9tUS$531.3bUS$118.0b40.6x49.7x11x
Mon, 20 May 2024US$5.3tUS$474.3bUS$104.9b45.1x51x11.3x
Wed, 17 Apr 2024US$5.2tUS$466.3bUS$98.3b40.2x52.8x11.1x
Fri, 15 Mar 2024US$5.4tUS$470.2bUS$98.7b47x54.9x11.5x
Sun, 11 Feb 2024US$5.5tUS$464.2bUS$90.0b42.7x61.1x11.8x
Tue, 09 Jan 2024US$5.0tUS$486.2bUS$82.8b45.7x60.9x10.4x
Thu, 07 Dec 2023US$5.0tUS$485.4bUS$82.3b44.7x60.7x10.3x
Sat, 04 Nov 2023US$4.7tUS$481.2bUS$79.0b43.3x58.9x9.7x
Mon, 02 Oct 2023US$4.4tUS$477.3bUS$73.4b44.8x59.9x9.2x
Wed, 30 Aug 2023US$4.5tUS$474.5bUS$71.2b45.2x63.9x9.6x
Fri, 28 Jul 2023US$4.6tUS$465.6bUS$63.6b47.9x71.8x9.8x
Sun, 25 Jun 2023US$4.4tUS$460.6bUS$62.3b44x70.9x9.6x
Tue, 23 May 2023US$4.2tUS$457.4bUS$61.0b40.4x68.7x9.2x
Thu, 20 Apr 2023US$3.9tUS$453.6bUS$60.5b42.9x65x8.7x
Sat, 18 Mar 2023US$3.8tUS$453.6bUS$59.7b42.2x63.6x8.4x
Mon, 13 Feb 2023US$3.6tUS$437.0bUS$57.8b42.8x62.6x8.3x
Wed, 11 Jan 2023US$3.2tUS$434.5bUS$60.2b39.9x53.1x7.4x
Fri, 09 Dec 2022US$3.3tUS$433.6bUS$60.9b44.2x54.9x7.7x
Price to Earnings Ratio

54.9x


Total Market Cap: US$3.3tTotal Earnings: US$60.9bTotal Revenue: US$433.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.3x202320242025
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 42.6x which is lower than its 3-year average PE of 55.3x.
  • The industry is trading close to its 3-year average PS ratio of 10.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 38% per year over the last three years.
  • Revenues for these companies have grown 14% 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 Market1.79%
Tech1.83%
Software2.22%
Application Software2.53%
Systems Software2.09%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 24.1%, which is lower than the prior year's growth of 31.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 39.9x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 32% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 18% 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$486.742.0%
+US$72.5b		12.9%PE34.5x
APP AppLovinUS$623.5912.2%
+US$22.8b		70.1%PE72.3x
ORCL OracleUS$200.942.0%
+US$11.1b		9.9%PE46x
PLTR Palantir TechnologiesUS$167.492.4%
+US$9.4b		136.0%PE364.4x
SNPS SynopsysUS$438.299.1%
+US$6.8b		-23.1%PE69.8x

Latest News

NTNX
US$47.19
Nutanix
7D
-19.7%
1Y
-28.5%
FICO
US$1,768.68
Fair Isaac
7D
-2.3%
1Y
-24.6%
SNPS
US$438.29
Synopsys
7D
9.1%
1Y
-23.1%
ZS
US$243.28
Zscaler
7D
-16.0%
1Y
22.5%

ZS: Future Returns Will Rely On Sustained Demand For Cybersecurity Solutions

Zscaler's analyst price target saw a marginal increase of $0.25. Analysts cited solid emerging product traction and improved profit margin expectations, despite mixed operational results.
ORCL
US$200.94
Oracle
7D
2.0%
1Y
9.9%

ORCL: Accelerating AI Demand Will Drive Large-Scale Data Center Expansion Ahead

Oracle's analyst price target has edged down modestly to $342 from $344, as analysts cite ongoing questions around cloud contract quality, margin pressures from heavy AI investments, and evolving customer demand trends as factors moderating their outlook. Analyst Commentary Analysts remain divided in their outlook for Oracle, with perspectives shaped by the company's recent cloud momentum, ambitious AI initiatives, and evolving leadership structure.
NBIS
US$100.15
Nebius Group
7D
12.7%
1Y
241.5%

NBIS: Multi-Billion Dollar Microsoft Deal Will Accelerate Capacity Expansion

Nebius Group's analyst price target has been revised downward from $166 to approximately $159. Analysts cite improving revenue growth and profit margins, but also note a moderation in longer-term earnings multiples, which tempers immediate upside expectations.
APP
US$623.59
AppLovin
7D
12.2%
1Y
70.1%
MSFT
US$486.74
Microsoft
7D
2.0%
1Y
12.9%

Shareholders Will Probably Hold Off On Increasing Microsoft Corporation's (NASDAQ:MSFT) CEO Compensation For The Time Being

Nov 28
Shareholders Will Probably Hold Off On Increasing Microsoft Corporation's (NASDAQ:MSFT) CEO Compensation For The Time Being
CRM
US$232.83
Salesforce
7D
2.6%
1Y
-29.7%
NOW
US$822.07
ServiceNow
7D
-0.4%
1Y
-22.2%
ADSK
US$305.12
Autodesk
7D
3.6%
1Y
2.1%

ADSK: Future Operating Margin Expansion Will Drive Shares Higher This Cycle

Autodesk's average analyst price target has increased modestly to approximately $373. This reflects analyst optimism around improving revenue growth, expanded profit margins, and consistent execution in recent quarters.
INTU
US$631.62
Intuit
7D
-2.5%
1Y
-0.7%

INTU: OpenAI Partnership Will Expand Distribution Reach and Drive Upside Momentum

Intuit’s analyst price target has decreased slightly, moving from $807.12 to $805.22, as analysts balance improved Credit Karma prospects and new partnerships with OpenAI with modest adjustments to forecasts. Analyst Commentary Analysts have offered a variety of perspectives on Intuit’s outlook, drawing from recent developments in partnerships and Credit Karma performance.
WDAY
US$213.35
Workday
7D
-8.7%
1Y
-17.0%

WDAY: AI Adoption And Margin Improvements Will Drive Renewed Market Confidence

Workday's analyst price target has been reduced slightly from $282.05 to $277.28, as analysts cite a mix of solid business execution along with ongoing concerns about the company's growth trajectory and the impact of artificial intelligence trends. Analyst Commentary Recent Street research demonstrates a spectrum of perspectives regarding Workday's near-term and medium-term prospects.
ABTC
US$3.58
American Bitcoin
7D
-16.7%
1Y
n/a
PLTR
US$167.49
Palantir Technologies
7D
2.4%
1Y
136.0%
CRWD
US$504.13
CrowdStrike Holdings
7D
-1.6%
1Y
44.1%

CRWD: Future Performance Will Hinge On AI Expansion Amid Competitive Pressures

CrowdStrike Holdings' fair value estimate has been raised by analysts from approximately $506 to $519 per share. This reflects increased confidence in the company's growth prospects, and strong recent channel checks support higher price targets across Wall Street.