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U.S. Software Industry Analysis

UpdatedFeb 01, 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 Microsoft declining 7.7%. On the other hand Zoom Communications is actually up 7.4%. Overall the industry is down 5.5% 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
Sun, 01 Feb 2026US$6.2tUS$660.6bUS$174.1b28.2x35.4x9.3x
Tue, 30 Dec 2025US$7.2tUS$645.4bUS$164.7b31.5x43.5x11.1x
Thu, 27 Nov 2025US$6.9tUS$641.3bUS$161.2b29.2x43x10.8x
Sat, 25 Oct 2025US$7.8tUS$621.4bUS$151.9b33.3x51.4x12.6x
Mon, 22 Sep 2025US$7.9tUS$620.8bUS$151.7b36.3x52.2x12.8x
Wed, 20 Aug 2025US$7.5tUS$614.8bUS$150.1b36.5x50.2x12.2x
Fri, 18 Jul 2025US$7.4tUS$598.9bUS$131.3b43.5x56.6x12.4x
Sun, 15 Jun 2025US$7.0tUS$598.9bUS$130.9b41.1x53.7x11.7x
Tue, 13 May 2025US$6.5tUS$590.8bUS$131.0b33.4x49.8x11x
Thu, 10 Apr 2025US$5.2tUS$581.3bUS$131.9b29.8x39.5x9x
Sat, 08 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.3x10.3x
Mon, 03 Feb 2025US$6.5tUS$585.7bUS$132.4b41.2x48.9x11x
Wed, 01 Jan 2025US$6.4tUS$569.1bUS$128.9b40.1x49.8x11.3x
Fri, 29 Nov 2024US$6.5tUS$566.8bUS$127.5b42.1x51x11.5x
Sun, 27 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49.3x11.1x
Tue, 24 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Thu, 22 Aug 2024US$5.9tUS$549.1bUS$121.6b36.9x48.3x10.7x
Sat, 20 Jul 2024US$5.9tUS$530.6bUS$118.4b41x49.5x11x
Mon, 17 Jun 2024US$5.8tUS$531.3bUS$118.1b39.5x49.2x10.9x
Wed, 15 May 2024US$5.2tUS$474.0bUS$104.5b44.4x50x11x
Fri, 12 Apr 2024US$5.4tUS$466.3bUS$98.4b42.1x54.5x11.5x
Sun, 10 Mar 2024US$5.3tUS$470.2bUS$98.5b46.9x54.2x11.3x
Tue, 06 Feb 2024US$5.3tUS$462.6bUS$89.3b44.9x59.1x11.4x
Thu, 04 Jan 2024US$5.0tUS$486.2bUS$82.8b46.8x60.6x10.3x
Sat, 02 Dec 2023US$5.1tUS$485.0bUS$82.0b46.6x61.9x10.5x
Mon, 30 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Wed, 27 Sep 2023US$4.3tUS$477.3bUS$73.2b44.6x59.1x9.1x
Fri, 25 Aug 2023US$4.4tUS$473.9bUS$70.8b42.9x62.1x9.3x
Sun, 23 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Tue, 20 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Thu, 18 May 2023US$4.1tUS$456.9bUS$61.0b39.9x66.9x8.9x
Sat, 15 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Mon, 13 Mar 2023US$3.5tUS$453.6bUS$60.0b42.1x58.2x7.7x
Wed, 08 Feb 2023US$3.7tUS$436.5bUS$57.8b42.3x63.7x8.4x
Price to Earnings Ratio

63.7x


Total Market Cap: US$3.7tTotal Earnings: US$57.8bTotal Revenue: US$436.5bTotal 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 2.5x.
    • 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
ZM Zoom CommunicationsUS$92.107.4%
+US$1.9b		5.9%PE17.1x
DLB Dolby LaboratoriesUS$64.193.4%
+US$222.6m		-23.3%PE25.5x
QLYS QualysUS$131.902.4%
+US$111.5m		-5.4%PE25x
ALKT Alkami TechnologyUS$21.192.6%
+US$56.7m		-39.1%PS5.4x
AMOD Alpha Modus HoldingsUS$1.059.7%
+US$9.6m		-63.7%PE-19.6x

Latest News

ZM
US$92.10
Zoom Communications
7D
7.4%
1Y
5.9%
MSFT
US$430.29
Microsoft
7D
-7.7%
1Y
3.7%
NOW
US$117.01
ServiceNow
7D
-12.1%
1Y
-42.6%
PLTR
US$146.59
Palantir Technologies
7D
-13.6%
1Y
77.7%

Stepping Aside on Palantir

I’ve exited my Palantir position, expecting lower prices. We could revisit the 120–107 range.
DLB
US$64.19
Dolby Laboratories
7D
3.4%
1Y
-23.3%
NTWK
US$3.56
NetSol Technologies
7D
14.8%
1Y
32.3%

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
-11.5%
1Y
-17.1%
ALKT
US$21.19
Alkami Technology
7D
2.6%
1Y
-39.1%
APP
US$473.11
AppLovin
7D
-9.8%
1Y
28.0%
ORCL
US$164.58
Oracle
7D
-7.1%
1Y
-3.2%
KARO
US$50.05
Karooooo
7D
0.4%
1Y
8.4%
AMOD
US$1.05
Alpha Modus Holdings
7D
9.7%
1Y
-63.7%
SNPS
US$465.12
Synopsys
7D
-7.2%
1Y
-11.5%
QLYS
US$131.90
Qualys
7D
2.4%
1Y
-5.4%

QLYS: Recent Execution Strength Will Likely Fail To Justify Rich Pricing

Analysts have raised their fair value estimate for Qualys from $110.71 to $117.00, citing recent upward price target revisions, solid Q3 execution with accelerating billings and record operating margins, and five consecutive quarters of guidance outperformance that support expectations for a stronger growth outlook. Analyst Commentary Recent commentary has shifted from outright skepticism to a more balanced, wait and see stance.
CRM
US$212.29
Salesforce
7D
-6.9%
1Y
-37.9%

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.
CGNT
US$9.03
Cognyte Software
7D
1.5%
1Y
-3.0%