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U.S. Software Industry Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies425
  • 7D-3.2%
  • 3M-18.8%
  • 1Y-3.9%
  • YTD-17.1%

Over the last 7 days, the Software industry has dropped 3.2%, driven by Microsoft declining 3.4%. The industry has fallen 3.9% in the last 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, 16 Mar 2026US$5.7tUS$669.3bUS$161.5b27.8x35.4x8.5x
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
Price to Earnings Ratio

62.4x


Total Market Cap: US$3.7tTotal Earnings: US$59.8bTotal Revenue: US$453.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.6x202420252026
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 53.6x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 39% 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 Market-2.40%
Tech-2.42%
Software-3.23%
Systems Software-2.45%
Application Software-4.93%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 15.3x.
    • Analysts are expecting annual earnings growth of 24.8%, which is higher than its past year's earnings growth of 18.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 40.0x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 18% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 15% 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
ORCL OracleUS$155.112.3%
+US$10.5b		0.7%PE27.6x
NBIS Nebius GroupUS$112.9519.0%
+US$4.6b		299.3%PE985.5x
CRCL Circle Internet GroupUS$115.3813.2%
+US$3.7b		n/aPS10.2x
CRWD CrowdStrike HoldingsUS$441.781.8%
+US$1.9b		21.1%PS23.3x
IREN IRENUS$41.5813.3%
+US$1.6b		476.7%PE35.5x

Latest News

APP
US$458.67
AppLovin
7D
-8.7%
1Y
56.6%
ORCL
US$155.11
Oracle
7D
2.3%
1Y
0.7%
NBIS
US$112.95
Nebius Group
7D
19.0%
1Y
299.3%
ADBE
US$249.32
Adobe
7D
-11.7%
1Y
-37.6%
MSFT
US$395.55
Microsoft
7D
-3.4%
1Y
1.8%
FICO
US$1,131.22
Fair Isaac
7D
-23.4%
1Y
-37.2%
PANW
US$167.02
Palo Alto Networks
7D
1.2%
1Y
-9.7%

PANW: AI Security Consolidation And Geopolitical Positioning Will Drive Future Repricing

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INTU
US$439.96
Intuit
7D
-7.1%
1Y
-26.9%

INTU: AI Adoption In Tax And Small Business Will Support Future Usage

Our updated fair value estimate for Intuit moves lower to align with the Street's reset in price targets toward the $500 to $600 range, as analysts factor in slightly softer growth and margin assumptions while still highlighting resilient tax and small business franchises and emerging AI traction despite recent AI related concerns. Analyst Commentary Street research on Intuit has shifted toward lower price targets clustered around the $500 to $600 range, but with many firms still maintaining positive ratings.
CRCL
US$115.38
Circle Internet Group
7D
13.2%
1Y
n/a

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CRM
US$192.83
Salesforce
7D
-3.0%
1Y
-31.3%

CRM: AI Adoption And FY27 Execution Will Drive Balanced Risk Outlook

Our updated Salesforce narrative reflects a lower fair value estimate, from about $232.85 to $190.00, as analysts reset price targets around $200 and trim assumed profit margins and future P/E multiples, while still pointing to Agentforce and potential revenue reacceleration in fiscal 2027 as key supports to the long term story. Analyst Commentary Across recent research, you see two clear threads on Salesforce.
NOW
US$113.62
ServiceNow
7D
-6.8%
1Y
-32.6%
WULF
US$14.67
TeraWulf
7D
6.7%
1Y
350.0%

WULF: Power Portfolio Monetization Will Anchor Future AI Hosting Cash Flow

The analyst fair value estimate for TeraWulf has increased from $26.00 to about $34.00. Analysts attribute this change to rising price targets, a shift toward high performance computing, and expectations around monetizing the company’s 2.2 GW power portfolio.
CORZ
US$16.49
Core Scientific
7D
11.0%
1Y
87.2%

CORZ: AI Hosting Expansion And Texas Power Capacity Will Drive Future Upside

Analysts lifted their Core Scientific fair value estimate to $20 from $17, pointing to progress on new Texas capacity, AI hosting expansion, and expectations around additional lease signings as key drivers behind the higher price target range across recent research updates. Analyst Commentary Street research on Core Scientific has been active, with several firms updating their views around the company’s shift toward AI and high performance compute hosting, the timing of new lease signings, and the evolving power portfolio.
CRWD
US$441.78
CrowdStrike Holdings
7D
1.8%
1Y
21.1%

CRWD: AI Security Platform And Identity Expansion Will Temper Crowded Trade Fears

Narrative Update on CrowdStrike Holdings Our updated view reflects a lower analyst price target of $374.82, down from $414.96, as analysts recalibrate revenue growth, profit margin and future P/E assumptions, while still highlighting strong Q4 execution, resilient ARR trends and ongoing AI and platform tailwinds across recent research. Analyst Commentary Across recent research, you are seeing a mix of optimism on CrowdStrike's execution and platform, paired with a clear reset in expectations as many firms trim price targets.
IREN
US$41.58
IREN
7D
13.3%
1Y
476.7%

IREN: AI Infrastructure Expansion And Microsoft Contract Will Drive Transformative Multi Year Upside

Analysts have trimmed their average price target on IREN by $5.54 to reflect a lower fair value estimate of $79.31, citing revised assumptions around growth, profitability and a very large projected future P/E multiple, even as recent research highlights IREN's exposure to AI infrastructure and its sizable contract with Microsoft. Analyst Commentary Recent research on IREN highlights a mix of optimism around its AI infrastructure exposure and caution around valuation and execution risk, especially in light of the large projected future P/E multiple embedded in some models.
PLTR
US$150.95
Palantir Technologies
7D
-3.5%
1Y
72.8%

Analysis of Palantir Technologies: Commercial Acceleration and Financial Maturity

Palantir Technologies Inc. has evolved from a specialized government contractor into a broad-market software provider.