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U.S. Software Industry Analysis

UpdatedFeb 11, 2026
DataAggregated Company Financials
Companies429
  • 7D0.8%
  • 3M-21.4%
  • 1Y-11.0%
  • YTD-15.0%

In the last week, the Software industry is down 2.4% with IREN down the most at 21%. Overall the industry is down 12% in 12 months. 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
Wed, 11 Feb 2026US$5.9tUS$662.8bUS$162.0b28.7x36.2x8.8x
Fri, 09 Jan 2026US$7.1tUS$648.9bUS$165.0b32.2x43.1x11x
Sun, 07 Dec 2025US$7.2tUS$641.9bUS$162.0b31.5x44.7x11.3x
Tue, 04 Nov 2025US$7.8tUS$637.0bUS$158.3b35.9x49.3x12.2x
Thu, 02 Oct 2025US$7.8tUS$621.0bUS$151.9b35.5x51.4x12.6x
Sat, 30 Aug 2025US$7.5tUS$616.5bUS$150.7b34.9x49.5x12.1x
Mon, 28 Jul 2025US$7.6tUS$597.2bUS$130.9b45.7x57.8x12.7x
Wed, 25 Jun 2025US$7.2tUS$599.0bUS$131.1b42.5x55x12.1x
Fri, 23 May 2025US$6.6tUS$591.8bUS$131.4b35.6x50.6x11.2x
Sun, 20 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.7x9.4x
Tue, 18 Mar 2025US$5.9tUS$582.9bUS$131.2b28.3x44.7x10.1x
Thu, 13 Feb 2025US$6.5tUS$587.2bUS$131.5b42.3x49.8x11.1x
Sat, 11 Jan 2025US$6.4tUS$569.1bUS$129.3b38.8x49.3x11.2x
Mon, 09 Dec 2024US$6.9tUS$566.7bUS$128.2b43.4x53.5x12.1x
Wed, 06 Nov 2024US$6.0tUS$562.1bUS$126.3b35.5x47.4x10.6x
Fri, 04 Oct 2024US$5.9tUS$551.7bUS$124.1b38.7x47.7x10.7x
Sun, 01 Sep 2024US$5.8tUS$551.5bUS$122.1b38.3x47.8x10.6x
Tue, 30 Jul 2024US$5.8tUS$532.0bUS$117.8b40.1x49x10.8x
Thu, 27 Jun 2024US$5.9tUS$531.3bUS$118.1b40.6x50.1x11.1x
Sat, 25 May 2024US$5.4tUS$475.8bUS$105.8b41.4x50.8x11.3x
Mon, 22 Apr 2024US$5.0tUS$466.6bUS$98.4b43.1x51.3x10.8x
Wed, 20 Mar 2024US$5.4tUS$465.8bUS$98.1b45x55x11.6x
Fri, 16 Feb 2024US$5.4tUS$464.9bUS$90.6b42.6x59.5x11.6x
Sun, 14 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Tue, 12 Dec 2023US$5.1tUS$485.6bUS$82.5b47.3x61.4x10.4x
Thu, 09 Nov 2023US$4.7tUS$481.7bUS$79.2b42.3x60x9.9x
Sat, 07 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Mon, 04 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Wed, 02 Aug 2023US$4.6tUS$466.2bUS$64.9b48x71.1x9.9x
Fri, 30 Jun 2023US$4.4tUS$460.6bUS$62.3b44.7x71.5x9.7x
Sun, 28 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Tue, 25 Apr 2023US$3.9tUS$453.7bUS$60.6b42.3x63.7x8.5x
Thu, 23 Mar 2023US$3.7tUS$453.7bUS$59.8b41.8x62.4x8.2x
Sat, 18 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Price to Earnings Ratio

61.7x


Total Market Cap: US$3.6tTotal Earnings: US$58.1bTotal Revenue: US$437.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.4x202420252026
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 35.7x which is lower than its 3-year average PE of 54.4x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 41% 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 Market0.99%
Tech2.89%
Software0.78%
Application Software0.88%
Systems Software0.74%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 5.3x.
    • Analysts are expecting annual earnings growth of 23.2%, which is higher than its past year's earnings growth of 20.3% 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.
  • This is roughly in line with its past earnings growth rate.
  • 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
MSFT MicrosoftUS$413.270.5%
+US$15.3b		0.4%PE25.7x
ORCL OracleUS$159.893.4%
+US$15.0b		-9.8%PE29.8x
CDNS Cadence Design SystemsUS$299.0011.4%
+US$8.3b		-1.6%PE76.7x
FTNT FortinetUS$85.537.9%
+US$4.6b		-21.0%PE34.3x
APP AppLovinUS$472.922.4%
+US$3.8b		26.0%PE54.8x

Latest News

CDNS
US$299.00
Cadence Design Systems
7D
11.4%
1Y
-1.6%
DDOG
US$129.67
Datadog
7D
8.4%
1Y
-10.8%
ORCL
US$159.89
Oracle
7D
3.4%
1Y
-9.8%
INTU
US$421.39
Intuit
7D
-2.9%
1Y
-28.1%
APP
US$472.92
AppLovin
7D
2.4%
1Y
26.0%
IREN
US$42.93
IREN
7D
-21.1%
1Y
245.7%
FTNT
US$85.53
Fortinet
7D
7.9%
1Y
-21.0%
TEAM
US$92.92
Atlassian
7D
-11.5%
1Y
-70.5%
CRM
US$193.45
Salesforce
7D
-1.5%
1Y
-40.4%

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

Narrative Update: Salesforce Analysts have made a modest trim to their Salesforce price target, reflecting a fair value move of about US$2 to US$328. This adjustment factors in slightly lower valuation multiples, alongside supportive views on profit margins and the potential impact of artificial intelligence on key performance indicators.
SNPS
US$437.45
Synopsys
7D
4.4%
1Y
-17.3%

SNPS: NVIDIA Alliance Will Drive AI Shift For Undervalued IP Business

Analysts have trimmed their outlook on Synopsys, cutting the price target to $520 from $602 as they factor in potential headwinds to the company’s $1.75b intellectual property business. These concerns stem from engineering and fabrication capacity shifting toward AI and high performance data center chips and away from consumer designs.
CRWD
US$413.39
CrowdStrike Holdings
7D
-2.0%
1Y
-4.2%
ZS
US$174.34
Zscaler
7D
-7.3%
1Y
-16.7%

ZS: Future Returns Will Rely On Expanding Zero Trust AI Security Adoption

Analysts have lowered their price targets for Zscaler by roughly $40 to $50, placing them in the $300 to $320 range. This reflects survey feedback on security budgets, shifts in peer multiples, and mixed read-throughs from recent ARR and emerging product trends.
IOT
US$27.90
Samsara
7D
13.2%
1Y
-49.5%
MSFT
US$413.27
Microsoft
7D
0.5%
1Y
0.4%
NOW
US$106.48
ServiceNow
7D
-3.0%
1Y
-47.2%

We Like ServiceNow's (NYSE:NOW) Earnings For More Than Just Statutory Profit

Feb 05
We Like ServiceNow's (NYSE:NOW) Earnings For More Than Just Statutory Profit
ADBE
US$264.67
Adobe
7D
-2.7%
1Y
-42.3%

ADBE: AI Transition And Semrush Deal Will Reshape Future Cash Flows

Analysts have trimmed their fair value estimate for Adobe slightly, to about $576 per share. They cite a wave of recent downgrades and reduced price targets that reflect concerns about limited near term upside, competitive pressure in creative tools, and uncertainty over how much the current AI transition will benefit the business.