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Feb 04
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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 a pullback from Microsoft of 14%. Meanwhile, MMTec actually outperformed within the industry, gaining 23% in the last week. However, the industry is down 11% over the past year. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 04 Feb 2026 | US$6.1t | US$661.2b | US$174.6b | 26.3x | 34.9x | 9.2x |
| Fri, 02 Jan 2026 | US$7.1t | US$645.3b | US$164.7b | 31.8x | 43x | 11x |
| Sun, 30 Nov 2025 | US$7.1t | US$640.4b | US$161.2b | 31.8x | 44x | 11.1x |
| Tue, 28 Oct 2025 | US$7.9t | US$621.4b | US$151.9b | 33.9x | 52x | 12.7x |
| Thu, 25 Sep 2025 | US$7.8t | US$620.8b | US$151.7b | 36.3x | 51.7x | 12.6x |
| Sat, 23 Aug 2025 | US$7.3t | US$615.8b | US$150.8b | 35x | 48.4x | 11.9x |
| Mon, 21 Jul 2025 | US$7.5t | US$596.3b | US$130.8b | 42.9x | 57.3x | 12.6x |
| Wed, 18 Jun 2025 | US$7.1t | US$598.9b | US$131.1b | 40.5x | 54.2x | 11.9x |
| Fri, 16 May 2025 | US$6.7t | US$591.1b | US$131.5b | 32.9x | 51.1x | 11.4x |
| Sun, 13 Apr 2025 | US$5.7t | US$581.3b | US$131.8b | 29.3x | 42.9x | 9.7x |
| Tue, 11 Mar 2025 | US$6.0t | US$582.3b | US$129.6b | 31.7x | 45.9x | 10.2x |
| Thu, 06 Feb 2025 | US$6.5t | US$585.9b | US$132.4b | 42.2x | 49.1x | 11.1x |
| Sat, 04 Jan 2025 | US$6.4t | US$569.1b | US$129.0b | 40.3x | 49.2x | 11.2x |
| Mon, 02 Dec 2024 | US$6.5t | US$566.8b | US$127.5b | 42.3x | 51.2x | 11.5x |
| Wed, 30 Oct 2024 | US$6.1t | US$552.9b | US$124.3b | 38.9x | 49.3x | 11.1x |
| Fri, 27 Sep 2024 | US$6.1t | US$552.4b | US$124.0b | 38.3x | 48.8x | 11x |
| Sun, 25 Aug 2024 | US$5.8t | US$550.2b | US$121.7b | 37.2x | 47.8x | 10.6x |
| Tue, 23 Jul 2024 | US$5.8t | US$530.6b | US$118.4b | 41x | 49.3x | 11x |
| Thu, 20 Jun 2024 | US$5.9t | US$531.3b | US$118.1b | 39.6x | 49.7x | 11x |
| Sat, 18 May 2024 | US$5.3t | US$474.3b | US$104.8b | 45.1x | 51x | 11.3x |
| Mon, 15 Apr 2024 | US$5.3t | US$466.4b | US$98.4b | 41.9x | 54.2x | 11.4x |
| Wed, 13 Mar 2024 | US$5.3t | US$470.2b | US$98.5b | 46.6x | 54.1x | 11.3x |
| Fri, 09 Feb 2024 | US$5.4t | US$464.0b | US$89.8b | 42.9x | 59.9x | 11.6x |
| Sun, 07 Jan 2024 | US$5.0t | US$486.2b | US$82.8b | 45.1x | 60.3x | 10.3x |
| Tue, 05 Dec 2023 | US$5.1t | US$485.2b | US$81.9b | 44.7x | 62x | 10.5x |
| Thu, 02 Nov 2023 | US$4.5t | US$484.8b | US$79.0b | 42.3x | 57.2x | 9.3x |
| Sat, 30 Sep 2023 | US$4.4t | US$477.4b | US$73.2b | 44.8x | 59.7x | 9.2x |
| Mon, 28 Aug 2023 | US$4.5t | US$474.4b | US$71.2b | 43.5x | 62.6x | 9.4x |
| Wed, 26 Jul 2023 | US$4.7t | US$461.1b | US$60.2b | 47.9x | 77.6x | 10.1x |
| Fri, 23 Jun 2023 | US$4.4t | US$460.5b | US$62.3b | 43.7x | 70.8x | 9.6x |
| Sun, 21 May 2023 | US$4.2t | US$457.4b | US$61.0b | 39.9x | 68.1x | 9.1x |
| Tue, 18 Apr 2023 | US$3.9t | US$453.6b | US$60.5b | 43.6x | 65.1x | 8.7x |
| Thu, 16 Mar 2023 | US$3.7t | US$453.8b | US$60.0b | 41.5x | 60.9x | 8.1x |
| Sat, 11 Feb 2023 | US$3.6t | US$437.0b | US$57.8b | 42.8x | 62.6x | 8.3x |
Price to Earnings Ratio
62.6x
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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MTC MMTec | US$3.48 | 23.0% +US$16.4m | 124.5% | PS32.8x | |
| FATN FatPipe | US$2.60 | 33.3% +US$9.1m | n/a | PE55.4x | |
| MGIC Magic Software Enterprises | US$27.11 | 0.6% +US$7.9m | 109.8% | PE33.4x | |
| CCSI Consensus Cloud Solutions | US$22.01 | 1.5% +US$6.3m | -22.9% | PE5.1x | |
| AMOD Alpha Modus Holdings | US$1.03 | 10.2% +US$4.5m | -55.6% | PE-19.3x |
