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U.S. Software Industry Analysis

UpdatedJan 30, 2026
DataAggregated Company Financials
Companies431
  • 7D-4.4%
  • 3M-20.0%
  • 1Y-3.9%
  • YTD-9.4%

Over the last 7 days, the Software industry has dropped 4.4%, driven by Microsoft declining 3.9%. In contrast, AppLovin has gained 9.1%. However, the industry is down 3.9% 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
Fri, 30 Jan 2026US$6.8tUS$661.5bUS$174.2b28.8x38.8x10.2x
Sun, 28 Dec 2025US$7.2tUS$645.4bUS$164.7b31.7x43.7x11.2x
Tue, 25 Nov 2025US$6.8tUS$640.4bUS$160.5b30.4x42.6x10.7x
Thu, 23 Oct 2025US$7.8tUS$621.4bUS$151.8b34.3x51.3x12.5x
Sat, 20 Sep 2025US$7.8tUS$620.8bUS$151.7b35.3x51.2x12.5x
Mon, 18 Aug 2025US$7.5tUS$614.4bUS$150.3b35.7x50.2x12.3x
Wed, 16 Jul 2025US$7.4tUS$598.9bUS$131.4b43.1x56.1x12.3x
Fri, 13 Jun 2025US$7.0tUS$598.6bUS$130.5b41.3x53.4x11.6x
Sun, 11 May 2025US$6.4tUS$590.8bUS$130.8b33.7x49.2x10.9x
Tue, 08 Apr 2025US$5.3tUS$581.3bUS$131.8b28.7x39.9x9x
Thu, 06 Mar 2025US$6.0tUS$582.0bUS$129.5b34.9x46.5x10.4x
Sat, 01 Feb 2025US$6.5tUS$585.7bUS$132.3b41.2x48.8x11x
Mon, 30 Dec 2024US$6.5tUS$569.1bUS$128.8b40.7x50.5x11.4x
Wed, 27 Nov 2024US$6.5tUS$566.0bUS$127.5b42.3x51.1x11.5x
Fri, 25 Oct 2024US$6.1tUS$552.5bUS$124.3b37.2x48.8x11x
Sun, 22 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Tue, 20 Aug 2024US$5.8tUS$548.8bUS$121.5b36.3x47.7x10.6x
Thu, 18 Jul 2024US$6.0tUS$530.6bUS$118.4b41.5x50.9x11.4x
Sat, 15 Jun 2024US$5.8tUS$530.8bUS$117.8b39.8x48.9x10.9x
Mon, 13 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Wed, 10 Apr 2024US$5.4tUS$466.0bUS$98.4b43.4x54.9x11.6x
Fri, 08 Mar 2024US$5.4tUS$470.0bUS$98.4b44.7x54.4x11.4x
Sun, 04 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Tue, 02 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Thu, 30 Nov 2023US$5.0tUS$483.6bUS$80.7b45.4x62.5x10.4x
Sat, 28 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Mon, 25 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Wed, 23 Aug 2023US$4.4tUS$473.8bUS$70.7b43.8x62.6x9.3x
Fri, 21 Jul 2023US$4.6tUS$460.7bUS$60.1b48.5x77.2x10.1x
Sun, 18 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Tue, 16 May 2023US$4.0tUS$456.9bUS$61.1b39.9x65.8x8.8x
Thu, 13 Apr 2023US$3.9tUS$453.6bUS$60.5b43.7x63.9x8.5x
Sat, 11 Mar 2023US$3.5tUS$453.6bUS$60.0b42.3x58.2x7.7x
Mon, 06 Feb 2023US$3.6tUS$436.5bUS$57.8b42.3x62.6x8.3x
Price to Earnings Ratio

62.6x


Total Market Cap: US$3.6tTotal Earnings: US$57.8bTotal Revenue: US$436.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.7x202420252026
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 38.8x 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 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 Market0.25%
Tech0.98%
Software-4.43%
Systems Software-4.04%
Application Software-5.29%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 2.0x.
    • 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 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 37% 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
APP AppLovinUS$569.249.1%
+US$16.0b		55.7%PE66x
FTNT FortinetUS$81.515.0%
+US$2.9b		-19.2%PE32.4x
IREN IRENUS$59.8414.5%
+US$2.5b		481.0%PE37.5x
ZM Zoom CommunicationsUS$92.589.4%
+US$2.3b		6.1%PE17.2x
HUT Hut 8US$61.5311.6%
+US$692.5m		186.2%PE32.6x

Latest News

ZM
US$92.58
Zoom Communications
7D
9.4%
1Y
6.1%
INTU
US$502.98
Intuit
7D
-8.2%
1Y
-16.8%
CORZ
US$18.84
Core Scientific
7D
4.2%
1Y
53.7%
NOW
US$116.73
ServiceNow
7D
-9.2%
1Y
-42.4%
APP
US$569.24
AppLovin
7D
9.1%
1Y
55.7%
MSFT
US$433.50
Microsoft
7D
-3.9%
1Y
4.5%
ORCL
US$169.01
Oracle
7D
-5.1%
1Y
-0.8%
IREN
US$59.84
IREN
7D
14.5%
1Y
481.0%
SNPS
US$480.00
Synopsys
7D
-5.8%
1Y
-8.8%
MSTR
US$143.19
Strategy
7D
-11.1%
1Y
-57.9%
FTNT
US$81.51
Fortinet
7D
5.0%
1Y
-19.2%
CRM
US$214.08
Salesforce
7D
-6.1%
1Y
-37.7%

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.
WULF
US$14.54
TeraWulf
7D
12.8%
1Y
190.2%

WULF: Long Dated Fluidstack Contracts Will Support Future High Performance Compute Capacity

Analysts have raised their price target on TeraWulf by about $0.66 to roughly $22, citing the company's expanded high performance compute contracts, long term hosting commitments and increased confidence in securing 250 to 500 MW of annual capacity as key supports for the revised valuation. Analyst Commentary Recent research on TeraWulf has focused on its shift toward high performance compute, the scale of its long term contracts, and the feasibility of its capacity goals.
HUT
US$61.53
Hut 8
7D
11.6%
1Y
186.2%

HUT: AI Pipeline Euphoria Will Likely Outrun River Bend Contract Execution

Analysts have lifted their price targets on Hut 8 into the US$60 to US$76 range, pointing to the December River Bend deal, new AI related partnerships, and the value of the company’s development pipeline as key reasons behind the updated valuation inputs. Analyst Commentary Recent Street research on Hut 8 has centered on how the company’s development pipeline, River Bend transaction, and AI related partnerships might translate into long term value.
CIFR
US$17.70
Cipher Mining
7D
1.8%
1Y
276.6%

CIFR: Long Term Hyperscaler Lease Will Support Future AI Data Center Leadership

The analyst fair value estimate for Cipher Mining has edged down from US$27.25 to about US$26.68 as analysts factor in higher Street price targets tied to the Amazon Web Services AI infrastructure lease, along with emerging views on earnings visibility and valuation multiples in high density data centers. Analyst Commentary Recent Street research around Cipher Mining is clustering around the long term Amazon Web Services AI infrastructure lease and what it could mean for valuation, execution risk and growth in high density data centers.
PLTR
US$151.86
Palantir Technologies
7D
-8.5%
1Y
87.0%