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U.S. Software Industry Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies431
  • 7D4.6%
  • 3M-13.9%
  • 1Y0.5%
  • YTD-2.3%

Over the last 7 days, the Software industry has risen 4.6%, driven by gains from Microsoft of 8.4%. During this same period, the Palantir Technologies underperformed, falling 5.2%. Overall in the last year, the industry is flat. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 29 Jan 2026US$6.8tUS$649.2bUS$159.8b30.1x42.4x10.4x
Sat, 27 Dec 2025US$7.2tUS$645.4bUS$164.7b31.7x43.8x11.2x
Mon, 24 Nov 2025US$6.8tUS$640.4bUS$160.5b28.8x42.5x10.7x
Wed, 22 Oct 2025US$7.7tUS$621.7bUS$151.8b35.2x51x12.5x
Fri, 19 Sep 2025US$7.7tUS$620.8bUS$151.7b35.4x50.7x12.4x
Sun, 17 Aug 2025US$7.5tUS$614.4bUS$150.3b35.7x50.2x12.3x
Tue, 15 Jul 2025US$7.3tUS$598.9bUS$131.4b42.9x55.7x12.2x
Thu, 12 Jun 2025US$6.9tUS$593.9bUS$131.6b40.9x52.6x11.7x
Sat, 10 May 2025US$6.5tUS$590.8bUS$130.8b33.7x49.3x10.9x
Mon, 07 Apr 2025US$5.3tUS$581.3bUS$131.8b28.8x39.9x9.1x
Wed, 05 Mar 2025US$6.0tUS$580.7bUS$129.4b34.5x46.6x10.4x
Fri, 31 Jan 2025US$6.7tUS$585.4bUS$132.1b41.2x50.4x11.4x
Sun, 29 Dec 2024US$6.5tUS$569.1bUS$128.8b40.7x50.5x11.4x
Tue, 26 Nov 2024US$6.5tUS$566.0bUS$127.5b42.2x51.1x11.5x
Thu, 24 Oct 2024US$6.1tUS$552.0bUS$124.1b37.2x49.3x11.1x
Sat, 21 Sep 2024US$6.1tUS$552.4bUS$124.0b38.4x49.2x11x
Mon, 19 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.7x10.6x
Wed, 17 Jul 2024US$6.1tUS$530.6bUS$118.4b41.7x51.1x11.4x
Fri, 14 Jun 2024US$5.8tUS$530.8bUS$117.8b39.9x48.9x10.9x
Sun, 12 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Tue, 09 Apr 2024US$5.4tUS$466.0bUS$98.3b43.3x54.8x11.6x
Thu, 07 Mar 2024US$5.2tUS$470.0bUS$98.4b45x53.3x11.2x
Sat, 03 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Mon, 01 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Wed, 29 Nov 2023US$5.0tUS$482.7bUS$80.2b46.5x62.3x10.4x
Fri, 27 Oct 2023US$4.4tUS$484.6bUS$78.9b41.4x55.8x9.1x
Sun, 24 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Tue, 22 Aug 2023US$4.3tUS$473.7bUS$70.6b43.7x61.5x9.2x
Thu, 20 Jul 2023US$4.8tUS$460.7bUS$60.1b49.5x79.2x10.3x
Sat, 17 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Mon, 15 May 2023US$4.0tUS$456.8bUS$61.1b39.2x65.4x8.7x
Wed, 12 Apr 2023US$3.9tUS$453.6bUS$60.5b43.6x63.9x8.5x
Fri, 10 Mar 2023US$3.6tUS$453.5bUS$59.8b42.6x59.7x7.9x
Sun, 05 Feb 2023US$3.6tUS$436.2bUS$57.8b44.8x62.6x8.3x
Price to Earnings Ratio

62.6x


Total Market Cap: US$3.6tTotal Earnings: US$57.8bTotal Revenue: US$436.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.7x202420252026
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 42.4x which is lower than its 3-year average PE of 54.7x.
  • The industry is trading close to its 3-year average PS ratio of 10.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% 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 Market0.90%
Tech3.55%
Software4.56%
Systems Software6.67%
Application Software0.021%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 1.7x.
    • Analysts are expecting annual earnings growth of 23.9%, which is lower than the prior year's growth of 36.7% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to 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 37% 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$481.638.4%
+US$278.9b		8.9%PE34.1x
CRM SalesforceUS$227.962.9%
+US$6.0b		-35.6%PE29.6x
CRWD CrowdStrike HoldingsUS$469.195.2%
+US$5.9b		18.2%PS25.9x
FTNT FortinetUS$82.088.4%
+US$4.7b		-17.4%PE32.6x
NOW ServiceNowUS$129.623.4%
+US$4.5b		-43.3%PE77.7x

Latest News

ORCL
US$172.80
Oracle
7D
-0.6%
1Y
6.7%
NOW
US$129.62
ServiceNow
7D
3.4%
1Y
-43.3%
ROP
US$360.37
Roper Technologies
7D
-10.9%
1Y
-33.6%
CVLT
US$89.85
Commvault Systems
7D
-24.8%
1Y
-38.8%
SNPS
US$511.35
Synopsys
7D
-2.0%
1Y
-0.3%
MSTR
US$158.45
Strategy
7D
-3.3%
1Y
-53.6%
FTNT
US$82.08
Fortinet
7D
8.4%
1Y
-17.4%
MSFT
US$481.63
Microsoft
7D
8.4%
1Y
8.9%
ZM
US$96.22
Zoom Communications
7D
18.5%
1Y
10.3%
INTU
US$538.70
Intuit
7D
-1.6%
1Y
-10.9%

INTU: OpenAI Partnership Will Drive Future AI Agent Adoption

Narrative Update on Intuit Our analyst price target for Intuit has edged down by about US$10 to reflect a slightly lower fair value and P/E assumption, even as analysts point to AI tailwinds, the OpenAI partnership, and potential Credit Karma strength. Analysts are also flagging tougher tax season comparisons and awaiting clearer proof of assisted tax share gains.
DDOG
US$140.56
Datadog
7D
13.9%
1Y
-3.5%

DDOG: AI Workloads And Usage Acceleration Will Drive Future Repricing

The analyst fair value estimate for Datadog has shifted from about $190 to $260, with analysts pointing to stronger core usage trends, improved visibility following key AI customer renewals, and updated assumptions for growth and future P/E multiples as key drivers behind the new price target range across recent research. Analyst Commentary Recent research on Datadog shows a wide range of views, but the move in fair value estimates toward the upper end of the US$200 range is largely driven by bullish analysts reacting to Q3 results, key AI customer renewals, and updated assumptions for growth and P/E multiples.
IOT
US$30.12
Samsara
7D
-5.3%
1Y
-40.9%
CRM
US$227.96
Salesforce
7D
2.9%
1Y
-35.6%

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.
CRWD
US$469.19
CrowdStrike Holdings
7D
5.2%
1Y
18.2%

CRWD: AI Identity Push And Crowded Trade Likely To Reshape Future Multiple

Analysts made a small adjustment to our CrowdStrike fair value estimate to about $415 per share from about $416, reflecting slightly higher modeled revenue growth, modestly stronger profitability, and slightly lower future P/E expectations in light of recent price target changes and mixed but generally constructive Street commentary. Analyst Commentary Recent Street research around CrowdStrike has been active, with most firms maintaining constructive views on the business while adjusting price targets within a relatively tight band.
APP
US$542.36
AppLovin
7D
1.8%
1Y
48.0%

APP: Heavy Buybacks And Lofty Margins Will Likely Cap Future Upside

Analysts have nudged their fair value estimate for AppLovin to $544.25, a modest move from $538.97. The change reflects refreshed assumptions around revenue growth, profit margins, discount rate and future P/E multiples.
PLTR
US$157.35
Palantir Technologies
7D
-5.2%
1Y
93.7%