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U.S. Software Industry Analysis

UpdatedFeb 09, 2026
DataAggregated Company Financials
Companies429
  • 7D-8.0%
  • 3M-25.3%
  • 1Y-13.6%
  • YTD-18.1%

Over the last 7 days, the Software industry has dropped 8.0%, driven by a pullback from Microsoft of 6.8%. On the other hand InterDigital is actually up 14%. Overall the industry is down 14% in 12 months. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 09 Feb 2026US$5.7tUS$662.4bUS$162.0b26.9x35x8.6x
Wed, 07 Jan 2026US$7.0tUS$648.9bUS$165.0b32.7x42.2x10.7x
Fri, 05 Dec 2025US$7.1tUS$641.7bUS$161.9b31.4x43.9x11.1x
Sun, 02 Nov 2025US$7.8tUS$636.9bUS$158.3b34.9x49.3x12.3x
Tue, 30 Sep 2025US$7.7tUS$620.9bUS$151.9b35.1x51x12.5x
Thu, 28 Aug 2025US$7.4tUS$615.8bUS$150.8b35.1x48.8x11.9x
Sat, 26 Jul 2025US$7.5tUS$597.2bUS$130.9b45.7x57.5x12.6x
Mon, 23 Jun 2025US$7.0tUS$599.0bUS$131.1b40.7x53.5x11.7x
Wed, 21 May 2025US$6.8tUS$591.1bUS$131.4b36.1x51.4x11.4x
Fri, 18 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.9x9.5x
Sun, 16 Mar 2025US$5.9tUS$582.9bUS$131.2b28.1x44.7x10.1x
Tue, 11 Feb 2025US$6.5tUS$586.3bUS$132.4b42.9x49x11.1x
Thu, 09 Jan 2025US$6.4tUS$569.1bUS$129.0b39x49.3x11.2x
Sat, 07 Dec 2024US$6.8tUS$566.7bUS$128.2b43.4x52.9x12x
Mon, 04 Nov 2024US$6.0tUS$561.9bUS$126.3b39x47.5x10.7x
Wed, 02 Oct 2024US$6.0tUS$551.7bUS$124.1b38.4x48.8x11x
Fri, 30 Aug 2024US$5.7tUS$551.3bUS$122.0b37.8x47x10.4x
Sun, 28 Jul 2024US$5.8tUS$532.0bUS$117.8b40.7x49x10.8x
Tue, 25 Jun 2024US$5.9tUS$531.3bUS$118.0b40.7x50.1x11.1x
Thu, 23 May 2024US$5.4tUS$474.6bUS$105.3b42.5x51.4x11.4x
Sat, 20 Apr 2024US$5.1tUS$466.6bUS$98.4b42x51.9x10.9x
Mon, 18 Mar 2024US$5.3tUS$471.0bUS$98.1b45.8x54.4x11.3x
Wed, 14 Feb 2024US$5.3tUS$464.6bUS$90.2b41.8x58.8x11.4x
Fri, 12 Jan 2024US$5.2tUS$486.2bUS$82.2b45.8x63.3x10.7x
Sun, 10 Dec 2023US$5.1tUS$485.6bUS$82.5b47.1x61.3x10.4x
Tue, 07 Nov 2023US$4.7tUS$481.3bUS$79.0b43x58.9x9.7x
Thu, 05 Oct 2023US$4.4tUS$477.3bUS$73.4b44.8x60.6x9.3x
Sat, 02 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Mon, 31 Jul 2023US$4.6tUS$466.2bUS$64.9b47.7x70.8x9.9x
Wed, 28 Jun 2023US$4.4tUS$460.6bUS$62.3b44.2x71.2x9.6x
Fri, 26 May 2023US$4.1tUS$458.2bUS$61.4b40.5x67x9x
Sun, 23 Apr 2023US$3.9tUS$453.7bUS$60.6b42.4x64.4x8.6x
Tue, 21 Mar 2023US$3.7tUS$453.6bUS$59.7b42.5x62.5x8.2x
Thu, 16 Feb 2023US$3.7tUS$437.3bUS$58.1b43.3x64.3x8.5x
Price to Earnings Ratio

64.3x


Total Market Cap: US$3.7tTotal Earnings: US$58.1bTotal Revenue: US$437.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.4x202420252026
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 35.0x which is lower than its 3-year average PE of 54.4x.
  • 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 Market-0.071%
Tech-1.49%
Software-8.02%
Systems Software-7.74%
Application Software-8.66%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 4.7x.
    • Analysts are expecting annual earnings growth of 23.1%, which is higher than its past year's earnings growth of 20.3% 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 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
IDCC InterDigitalUS$371.0813.7%
+US$1.1b		81.6%PE23.4x
FTNT FortinetUS$82.761.8%
+US$1.1b		-23.1%PE33.2x
BILL BILL HoldingsUS$48.9413.4%
+US$519.4m		-21.2%PS3.1x
WULF TeraWulfUS$14.296.9%
+US$385.2m		184.1%PS35.7x
NTNX NutanixUS$40.262.4%
+US$251.5m		-42.9%PE49.4x

Latest News

IDCC
US$371.08
InterDigital
7D
13.7%
1Y
81.6%
APP
US$406.72
AppLovin
7D
-14.0%
1Y
8.3%
BILL
US$48.94
BILL Holdings
7D
13.4%
1Y
-21.2%
FTNT
US$82.76
Fortinet
7D
1.8%
1Y
-23.1%
CRM
US$191.35
Salesforce
7D
-9.9%
1Y
-41.3%

CRM: AI And 2026 Setup Will Support Durable Long Term Value

Narrative Update: Salesforce Analysts have made a modest trim to their Salesforce price target, reflecting a fair value move of about US$2 to US$328. This adjustment factors in slightly lower valuation multiples, alongside supportive views on profit margins and the potential impact of artificial intelligence on key performance indicators.
PATH
US$12.89
UiPath
7D
2.4%
1Y
-7.7%

Some Confidence Is Lacking In UiPath, Inc. (NYSE:PATH) As Shares Slide 30%

Feb 06
Some Confidence Is Lacking In UiPath, Inc. (NYSE:PATH) As Shares Slide 30%
NTNX
US$40.26
Nutanix
7D
2.4%
1Y
-42.9%

Some Confidence Is Lacking In Nutanix, Inc. (NASDAQ:NTNX) As Shares Slide 26%

Feb 06
Some Confidence Is Lacking In Nutanix, Inc. (NASDAQ:NTNX) As Shares Slide 26%
PLTR
US$135.90
Palantir Technologies
7D
-7.3%
1Y
22.6%

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)
WULF
US$14.29
TeraWulf
7D
6.9%
1Y
184.1%

WULF: Expanded High Performance Computing Contracts Will Reshape Crypto Infrastructure Exposure

Narrative Update on TeraWulf Analysts have lifted their price target on TeraWulf to about US$17.00 from roughly US$7.51, citing stronger modeled revenue growth, a higher future P/E multiple, and recent research noting Q3 adjusted EBITDA of US$18.1m and expanded high performance computing and colocation plans as key supports for the updated valuation framework. Analyst Commentary Recent Street research around TeraWulf highlights both interest in the story and pockets of caution, particularly around execution on growth plans and the broader crypto policy backdrop.
PONY
US$14.31
Pony AI
7D
3.1%
1Y
2.2%
MSFT
US$401.14
Microsoft
7D
-6.8%
1Y
-2.1%
PANW
US$159.32
Palo Alto Networks
7D
-10.0%
1Y
-17.9%
NOW
US$100.74
ServiceNow
7D
-13.9%
1Y
-50.0%

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
ORCL
US$142.82
Oracle
7D
-13.2%
1Y
-18.1%
INTU
US$443.77
Intuit
7D
-11.1%
1Y
-23.3%
NBIS
US$86.10
Nebius Group
7D
1.1%
1Y
125.8%

NBIS: Long Term AI Power Contracts Will Support Future Capacity Utilization

Analysts kept their Nebius Group price target steady at US$211 while modestly adjusting assumptions around the discount rate, growth, margins, and future P/E to reflect recent initiation coverage, data center reliability metrics, and the long-term Microsoft contract backdrop. Analyst Commentary Bullish analysts have framed Nebius Group as a specialized power and data center provider tied closely to artificial intelligence and high performance compute, with coverage initiations and target adjustments centering on contracted demand, reliability metrics, and long-term visibility from major customer agreements.