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

U.S. Software Industry Analysis

UpdatedFeb 02, 2026
DataAggregated Company Financials
Companies426
  • 7D-7.8%
  • 3M-21.4%
  • 1Y-5.5%
  • YTD-10.9%

Over the last 7 days, the Software industry has dropped 7.8%, driven by a pullback from Microsoft of 8.5%. However, the industry is down 5.5% over the past year. 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
Mon, 02 Feb 2026US$6.2tUS$660.6bUS$174.1b28.2x35.4x9.3x
Wed, 31 Dec 2025US$7.1tUS$645.4bUS$164.8b31.7x43.4x11.1x
Fri, 28 Nov 2025US$7.0tUS$640.4bUS$161.2b30.8x43.5x11x
Sun, 26 Oct 2025US$7.9tUS$621.4bUS$151.9b33.3x51.9x12.7x
Tue, 23 Sep 2025US$7.9tUS$620.8bUS$151.7b36.6x52.2x12.8x
Thu, 21 Aug 2025US$7.4tUS$614.8bUS$150.1b36.7x49x12x
Sat, 19 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.4x12.6x
Mon, 16 Jun 2025US$7.0tUS$598.9bUS$130.9b41.1x53.7x11.7x
Wed, 14 May 2025US$6.6tUS$590.8bUS$130.9b33.1x50.6x11.2x
Fri, 11 Apr 2025US$5.8tUS$581.3bUS$131.9b29.1x43.7x9.9x
Sun, 09 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.1x10.3x
Tue, 04 Feb 2025US$6.5tUS$585.9bUS$132.3b40.9x48.9x11x
Thu, 02 Jan 2025US$6.4tUS$569.1bUS$128.9b40.1x49.4x11.2x
Sat, 30 Nov 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Mon, 28 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49.3x11.1x
Wed, 25 Sep 2024US$6.1tUS$552.4bUS$124.0b38.3x48.9x11x
Fri, 23 Aug 2024US$5.9tUS$549.4bUS$121.8b36.3x48.4x10.7x
Sun, 21 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Tue, 18 Jun 2024US$5.8tUS$531.3bUS$118.1b39.7x49.2x10.9x
Thu, 16 May 2024US$5.3tUS$474.0bUS$104.6b44.8x50.3x11.1x
Sat, 13 Apr 2024US$5.4tUS$466.3bUS$98.4b41.9x55x11.6x
Mon, 11 Mar 2024US$5.3tUS$470.2bUS$98.5b46.9x54.2x11.3x
Wed, 07 Feb 2024US$5.3tUS$462.8bUS$89.5b46.2x58.9x11.4x
Fri, 05 Jan 2024US$5.0tUS$486.2bUS$82.8b45.7x60.3x10.3x
Sun, 03 Dec 2023US$5.1tUS$485.3bUS$81.9b46.1x62.1x10.5x
Tue, 31 Oct 2023US$4.5tUS$484.8bUS$79.0b41.8x56.8x9.3x
Thu, 28 Sep 2023US$4.3tUS$477.4bUS$73.2b44.6x59.4x9.1x
Sat, 26 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Mon, 24 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Wed, 21 Jun 2023US$4.5tUS$460.5bUS$62.3b44.2x71.9x9.7x
Fri, 19 May 2023US$4.2tUS$457.1bUS$61.1b39.9x68.1x9.1x
Sun, 16 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Tue, 14 Mar 2023US$3.5tUS$453.6bUS$60.0b42x59x7.8x
Thu, 09 Feb 2023US$3.7tUS$436.7bUS$57.8b44x63.6x8.4x
Price to Earnings Ratio

63.6x


Total Market Cap: US$3.7tTotal Earnings: US$57.8bTotal Revenue: US$436.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.6x202420252026
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 35.4x which is lower than its 3-year average PE of 54.6x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 9.3x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 44% 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-0.23%
Tech-0.81%
Software-7.84%
Systems Software-7.25%
Application Software-9.13%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 2.8x.
    • Analysts are expecting annual earnings growth of 23.8%, 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 24% 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
IREN IRENUS$53.742.6%
+US$453.1m		403.2%PE33.7x
DLB Dolby LaboratoriesUS$64.193.3%
+US$215.9m		-23.7%PE25.5x
KLTR KalturaUS$1.637.9%
+US$18.8m		-36.1%PS1.4x
GRRR Gorilla Technology GroupUS$14.122.7%
+US$10.6m		9.5%PS4.1x
NTWK NetSol TechnologiesUS$3.5613.7%
+US$5.1m		35.4%PE84.8x

Latest News

DLB
US$64.19
Dolby Laboratories
7D
3.3%
1Y
-23.7%
KLTR
US$1.63
Kaltura
7D
7.9%
1Y
-36.1%
MSFT
US$430.29
Microsoft
7D
-8.5%
1Y
4.7%
IREN
US$53.74
IREN
7D
2.6%
1Y
403.2%
NOW
US$117.01
ServiceNow
7D
-14.2%
1Y
-42.7%
PLTR
US$146.59
Palantir Technologies
7D
-12.5%
1Y
75.1%

Stepping Aside on Palantir

I’ve exited my Palantir position, expecting lower prices. We could revisit the 120–107 range.
JAMF
US$13.05
Jamf Holding
7D
0.2%
1Y
-15.3%
NTWK
US$3.56
NetSol Technologies
7D
13.7%
1Y
35.4%

NetSol Technologies, Inc.'s (NASDAQ:NTWK) Revenues Are Not Doing Enough For Some Investors

Jan 30
NetSol Technologies, Inc.'s (NASDAQ:NTWK) Revenues Are Not Doing Enough For Some Investors
INTU
US$498.92
Intuit
7D
-11.2%
1Y
-17.0%
APP
US$473.11
AppLovin
7D
-11.6%
1Y
29.5%
ORCL
US$164.58
Oracle
7D
-9.8%
1Y
-2.4%
AMOD
US$1.05
Alpha Modus Holdings
7D
11.2%
1Y
-60.0%
SNPS
US$465.12
Synopsys
7D
-7.5%
1Y
-10.6%
GRRR
US$14.12
Gorilla Technology Group
7D
2.7%
1Y
9.5%

GRRR: Abnormal Pipeline Conversion Will Drive Future Upside Despite Heavy Stock Funded Capex

Narrative Update Analysts have nudged their price target on Gorilla Technology Group up by US$1 to US$39, citing recent Q3 results, expectations for very strong growth over the next few years based on business development trends and pipeline, and valuation work anchored on a 10x EV/EBITDA multiple that factors in substantial capital expenditure needs funded mostly with stock and some equity. Analyst Commentary Recent research on Gorilla Technology Group highlights an upbeat price target move to US$39, but the underlying commentary still leaves room for caution if you are weighing the risk and reward profile.
CFLT
US$30.54
Confluent
7D
0.03%
1Y
5.5%

CFLT: IBM Deal And Cloud Momentum Will Guide Future Share Performance

Narrative Update Analysts trimmed their fair value estimate for Confluent slightly from about $30.77 to $30.65, reflecting a mix of cautious views around the pending IBM acquisition and downgrades, as well as more upbeat commentary on stabilizing cloud growth, improving margins, and ongoing product momentum that supports a lower assumed future P/E multiple. Analyst Commentary Recent research has highlighted a split in how professionals view Confluent, with some focused on execution and product momentum and others centering on the pending IBM takeover and deal mechanics.
CRM
US$212.29
Salesforce
7D
-7.5%
1Y
-37.4%

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

Salesforce's analyst price target edges higher by $8 to $338, as analysts highlight a supportive 2026 setup for software, stable macro and IT spending, relatively low sector valuations, and potential benefits from artificial intelligence adoption alongside improving company key performance indicators. Analyst Commentary Recent research points to a generally constructive tone around Salesforce, with several firms updating their views as they look ahead to 2026 and the role artificial intelligence could play in the broader software group.