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U.S. Software Industry Analysis

UpdatedJul 31, 2026
DataAggregated Company Financials
Companies423
  • 7D11.5%
  • 3M6.0%
  • 1Y-19.4%
  • YTD-9.1%

Over the last 7 days, the Software industry has remained flat, although notably Microsoft gained 18%. Unfortunately though, the industry is down 24% over the past 12 months. Earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 31 Jul 2026US$5.8tUS$714.9bUS$165.9b28.8x34.9x8.1x
Sun, 28 Jun 2026US$5.6tUS$697.7bUS$156.3b26.5x35.9x8x
Tue, 26 May 2026US$6.2tUS$687.1bUS$155.3b28.4x40x9x
Thu, 23 Apr 2026US$6.0tUS$667.8bUS$157.0b31.3x38.2x9x
Sat, 21 Mar 2026US$5.6tUS$668.3bUS$166.9b29.4x33.6x8.4x
Mon, 16 Feb 2026US$5.7tUS$660.4bUS$164.0b26.4x34.7x8.6x
Wed, 14 Jan 2026US$7.1tUS$648.9bUS$165.0b32.9x42.8x10.9x
Fri, 12 Dec 2025US$7.2tUS$645.3bUS$165.5b32.7x43.8x11.2x
Sun, 09 Nov 2025US$7.4tUS$640.0bUS$159.1b33.5x46.5x11.6x
Tue, 07 Oct 2025US$7.8tUS$621.4bUS$151.8b36.1x51.2x12.5x
Thu, 04 Sep 2025US$7.3tUS$616.8bUS$150.8b36.6x48.7x11.9x
Sat, 02 Aug 2025US$7.7tUS$611.0bUS$147.0b39.7x52.6x12.7x
Mon, 30 Jun 2025US$7.2tUS$599.0bUS$131.2b42x55.1x12.1x
Wed, 28 May 2025US$6.6tUS$593.0bUS$131.7b36.4x50.2x11.2x
Fri, 25 Apr 2025US$5.6tUS$581.1bUS$131.9b31.4x42.5x9.7x
Sun, 23 Mar 2025US$5.9tUS$582.8bUS$131.2b29.5x45.2x10.2x
Tue, 18 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Thu, 16 Jan 2025US$6.2tUS$569.1bUS$129.3b40x48.2x11x
Sat, 14 Dec 2024US$6.8tUS$568.6bUS$128.6b41.7x52.8x11.9x
Mon, 11 Nov 2024US$6.4tUS$567.0bUS$127.1b40.6x50.4x11.3x
Wed, 09 Oct 2024US$5.9tUS$551.7bUS$124.1b39.5x47.4x10.7x
Fri, 06 Sep 2024US$5.7tUS$551.1bUS$122.2b37.5x46.7x10.3x
Sun, 04 Aug 2024US$5.5tUS$541.8bUS$120.2b38.2x45.8x10.2x
Tue, 02 Jul 2024US$6.0tUS$531.0bUS$118.1b41x50.5x11.2x
Thu, 30 May 2024US$5.3tUS$475.0bUS$105.6b40.3x50.6x11.3x
Sat, 27 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Mon, 25 Mar 2024US$5.5tUS$465.8bUS$98.0b45x55.8x11.7x
Wed, 21 Feb 2024US$5.3tUS$465.3bUS$90.9b45.1x57.9x11.3x
Fri, 19 Jan 2024US$5.3tUS$486.2bUS$82.1b45.7x64.6x10.9x
Sun, 17 Dec 2023US$5.1tUS$486.1bUS$82.9b47.3x61.6x10.5x
Tue, 14 Nov 2023US$4.8tUS$482.1bUS$79.1b44.9x61x10x
Thu, 12 Oct 2023US$4.6tUS$477.3bUS$73.7b45.3x62.3x9.6x
Sat, 09 Sep 2023US$4.6tUS$476.3bUS$73.0b44.8x63.2x9.7x
Mon, 07 Aug 2023US$4.5tUS$473.0bUS$68.4b47.4x65.9x9.5x
Price to Earnings Ratio

65.9x


Total Market Cap: US$4.5tTotal Earnings: US$68.4bTotal Revenue: US$473.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 49.6x202420252026
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 36.9x which is lower than its 3-year average PE of 49.6x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 8.3x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 32% 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 Market0.50%
Tech0.084%
Software11.48%
Systems Software13.61%
Application Software6.67%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 69.7x.
    • Analysts are expecting annual earnings growth of 26.1%, which is higher than its past year's earnings growth of 11.8% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 38.4x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings growth rate of 12% 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$451.1018.2%
+US$515.1b		-15.4%PE25x
ORCL OracleUS$127.566.3%
+US$21.7b		-49.7%PE21.6x
CRM SalesforceUS$180.7115.2%
+US$19.5b		-30.0%PE18.4x
NOW ServiceNowUS$110.0719.7%
+US$18.7b		-41.6%PE68.1x
ADBE AdobeUS$247.9116.8%
+US$14.2b		-30.7%PE13.6x

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