Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Systems Software Industry Analysis

UpdatedJan 26, 2026
DataAggregated Company Financials
Companies69
  • 7D0.1%
  • 3M-17.0%
  • 1Y1.0%
  • YTDn/a

In the last week, the Systems Software industry is flat overall, with Oracle standing out by going down 4.5%. Furthermore, the industry has been flat for the past year as well. As for the next few years, earnings are expected to grow by 17% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 27 Jan 2026US$4.6tUS$416.9bUS$125.7b33x36.6x11x
Thu, 25 Dec 2025US$4.9tUS$416.9bUS$125.7b37.3x38.7x11.7x
Sat, 22 Nov 2025US$4.8tUS$413.7bUS$123.2b36.9x38.9x11.6x
Mon, 20 Oct 2025US$5.4tUS$399.7bUS$120.0b39.9x44.9x13.5x
Wed, 17 Sep 2025US$5.4tUS$399.6bUS$120.0b37.2x45.1x13.5x
Fri, 15 Aug 2025US$5.2tUS$397.2bUS$120.1b38.1x43.5x13.1x
Sun, 13 Jul 2025US$5.1tUS$383.0bUS$114.3b38.7x44.7x13.3x
Tue, 10 Jun 2025US$4.7tUS$381.3bUS$114.0b38.6x41.6x12.4x
Thu, 08 May 2025US$4.3tUS$380.2bUS$114.2b33.9x37.9x11.4x
Sat, 05 Apr 2025US$3.8tUS$372.1bUS$110.4b28.8x34x10.1x
Mon, 03 Mar 2025US$4.1tUS$370.8bUS$109.9b33.2x37.4x11.1x
Wed, 29 Jan 2025US$4.5tUS$371.2bUS$109.1b38.3x41.2x12.1x
Fri, 27 Dec 2024US$4.4tUS$362.5bUS$108.9b38.2x40.8x12.3x
Sun, 24 Nov 2024US$4.3tUS$360.9bUS$108.0b39.5x40.1x12x
Tue, 22 Oct 2024US$4.2tUS$350.5bUS$105.1b39.6x40.2x12.1x
Thu, 19 Sep 2024US$4.3tUS$350.5bUS$105.0b39.4x40.8x12.2x
Sat, 17 Aug 2024US$4.1tUS$348.9bUS$104.3b36.9x39.1x11.7x
Mon, 15 Jul 2024US$4.3tUS$333.6bUS$101.7b40.2x42.2x12.8x
Wed, 12 Jun 2024US$3.7tUS$280.7bUS$91.2b39.9x40.2x13.1x
Fri, 10 May 2024US$3.5tUS$280.1bUS$91.2b38.6x38.6x12.6x
Sun, 07 Apr 2024US$3.6tUS$271.0bUS$87.0b38.3x41.9x13.5x
Tue, 05 Mar 2024US$3.6tUS$270.6bUS$87.0b39.3x41.3x13.3x
Thu, 01 Feb 2024US$3.6tUS$286.6bUS$85.9b40.8x42.5x12.7x
Sat, 30 Dec 2023US$3.3tUS$276.8bUS$80.3b41.5x41.7x12.1x
Mon, 27 Nov 2023US$3.3tUS$276.0bUS$79.7b42.3x41.6x12x
Wed, 25 Oct 2023US$2.9tUS$273.4bUS$74.8b41.6x39.3x10.8x
Fri, 22 Sep 2023US$2.9tUS$273.4bUS$74.8b42.3x38.4x10.5x
Sun, 20 Aug 2023US$2.8tUS$272.8bUS$74.5b42.4x38x10.4x
Tue, 18 Jul 2023US$3.0tUS$262.2bUS$68.2b47.9x44.3x11.5x
Thu, 15 Jun 2023US$3.0tUS$262.1bUS$68.3b44.8x43.3x11.3x
Sat, 13 May 2023US$2.7tUS$261.1bUS$67.9b41.3x39.4x10.2x
Mon, 10 Apr 2023US$2.6tUS$256.9bUS$65.0b43.8x39.2x9.9x
Wed, 08 Mar 2023US$2.3tUS$256.5bUS$65.2b42.3x34.8x8.8x
Fri, 03 Feb 2023US$2.3tUS$242.8bUS$63.4b44.6x36.4x9.5x
Price to Earnings Ratio

36.4x


Total Market Cap: US$2.3tTotal Earnings: US$63.4bTotal Revenue: US$242.8bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Systems Software Industry Price to Earnings3Y Average 40.2x202420252026
Current Industry PE
  • Investors are pessimistic on the American Systems 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 36.6x which is lower than its 3-year average PE of 40.2x.
  • The industry is trading close to its 3-year average PS ratio of 11.8x.
Past Earnings Growth
  • The earnings for companies in the Systems Software industry have grown 26% per year over the last three years.
  • Revenues for these companies have grown 20% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Comparison

How does U.S. Systems Software compare with similar industries?

US Market-0.36%
Tech-0.95%
Software-0.12%
Systems Software0.13%
Application Software-0.67%
Industry PEThere are no additional sub-industries under this industry.
Forecasted GrowthThere are no additional sub-industries under this industry.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
MSFT MicrosoftUS$470.282.3%
+US$77.4b		8.2%PE33.3x
NOW ServiceNowUS$136.347.1%
+US$9.4b		-40.2%PE81.7x
FTNT FortinetUS$83.0710.2%
+US$5.7b		-14.2%PE33x
CRWD CrowdStrike HoldingsUS$468.333.2%
+US$3.6b		25.3%PS25.9x
GTLB GitLabUS$38.1711.8%
+US$678.6m		-41.1%PS7.1x

Latest News

PANW
US$184.22
Palo Alto Networks
7D
-1.8%
1Y
-2.7%

PANW: AI Security And Observability M&A Will Drive Future Share Gains

Analysts have made a slight downward adjustment to the Palo Alto Networks fair value estimate, trimming their blended price target by less than US$1. They are balancing enthusiasm around the company’s role in security consolidation and AI driven demand with more cautious views on valuation, acquisitions and long term growth assumptions.
QLYS
US$132.18
Qualys
7D
-1.8%
1Y
-10.0%

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.
ORCL
US$182.44
Oracle
7D
-4.5%
1Y
15.3%

ORCL: AI Data Center Expansion Will Support Long-Term Cloud Demand Upside

Analysts have trimmed their average Oracle price target by $107 to US$240. This reflects a mix of renewed optimism around artificial intelligence driven infrastructure as a service demand, along with concerns about concentration in large AI contracts, elevated investment needs and recent recalibrations of prior bullish assumptions.
CVLT
US$129.36
Commvault Systems
7D
5.9%
1Y
-18.3%

CVLT: Shorter Contracts And Margin Pressure Will Create Future Upside Potential

Analysts have trimmed their fair value estimate for Commvault Systems to about $175 per share from roughly $187, reflecting a series of reduced price targets that cite slightly lower peer multiples, increased caution around security budgets, competitive concerns, and a less favorable margin outlook tied to shorter term contracts. Analyst Commentary Street research on Commvault Systems has centered on recalibrating price targets, with analysts weighing solid fundamental pillars against pockets of execution and competitive risk.
AIP
US$16.15
Arteris
7D
-8.1%
1Y
56.8%

AIP: Index Inclusion And New Design Wins Will Likely Unlock Upside

Analysts have raised their fair value estimate for Arteris from US$17.13 to US$19.25, citing updated assumptions on revenue growth, profit margins and future P/E that they view as better aligned with the company’s current risk profile. What's in the News Arteris, Inc.
GEN
US$25.63
Gen Digital
7D
-1.8%
1Y
-6.8%

GEN: Solid Execution And Cyber Safety Demand Will Support Future Upside

Analysts have trimmed their price target on Gen Digital to $29 from $33, reflecting lower peer group valuation multiples, even as they point to solid recent results and mid single to low double digit growth rates as support for the company’s ongoing potential. Analyst Commentary Recent commentary from bullish analysts centers on solid Q3 execution and what they see as encouraging underlying growth, even with a lower price target tied to peer multiple compression rather than company specific issues.
GTLB
US$38.17
GitLab
7D
11.8%
1Y
-41.1%

GTLB: AI Execution And Product Adoption Will Support Future Upside

Narrative Update: GitLab The analyst price target for GitLab has been adjusted modestly lower to reflect a new fair value of about US$51.15, trimmed from roughly US$51.78. This reflects analysts factoring in slower expected revenue growth, a slightly lower future P/E, ongoing concerns around competitive pressure and AI related risks, and recent rating changes across the software group.
CYBR
US$446.46
CyberArk Software
7D
-1.6%
1Y
24.2%

CYBR: Fairly Valued On AI Security And Pending Platform Integration Risks

Analysts have trimmed their price target on CyberArk by $2.50, reflecting slightly lower fair value and P/E assumptions, while still pointing to potential benefits from the pending Palo Alto Networks deal and broader AI security interest. Analyst Commentary Recent research around CyberArk and the pending Palo Alto Networks acquisition gives you a mixed but useful picture of how Wall Street is thinking about growth, execution, and what a combined platform could be worth over time.
PATH
US$14.91
UiPath
7D
4.0%
1Y
8.4%

PATH: AI Software Setup And Index Adds Will Support Automation Outlook

Narrative update Analysts have nudged their fair value view for UiPath slightly higher, reflecting price target moves such as Barclays lifting its target to US$18 from US$16 and RBC Capital moving to US$14 from US$12, citing a more constructive setup for software and AI exposed names. Analyst Commentary Recent research is broadly constructive, but it also highlights that expectations around AI and software can still be a source of swings in sentiment for UiPath.
CHKP
US$184.71
Check Point Software Technologies
7D
-0.4%
1Y
-6.8%
CRWD
US$468.33
CrowdStrike Holdings
7D
3.2%
1Y
25.3%

CRWD: AI Identity Push And Crowded Trade Likely To Reshape Future Multiple

Analysts made a small adjustment to our CrowdStrike fair value estimate to about $415 per share from about $416, reflecting slightly higher modeled revenue growth, modestly stronger profitability, and slightly lower future P/E expectations in light of recent price target changes and mixed but generally constructive Street commentary. Analyst Commentary Recent Street research around CrowdStrike has been active, with most firms maintaining constructive views on the business while adjusting price targets within a relatively tight band.
MSFT
US$470.28
Microsoft
7D
2.3%
1Y
8.2%

MSFT: AI Infrastructure Buildout And OpenAI Partnership Will Sustain Cloud Leadership

Microsoft's updated analyst price target edges slightly lower, with fair value now at about $622.19, as analysts balance modest tweaks to the discount rate and P/E assumptions against ongoing AI related demand signals highlighted in recent research. Analyst Commentary Recent research around Microsoft clusters into two broad camps, with most commentary still constructive on AI driven growth and cloud execution, while a smaller group is more cautious on capital intensity and hyperscaler economics.
NOW
US$136.34
ServiceNow
7D
7.1%
1Y
-40.2%
NBIS
US$91.46
Nebius Group
7D
-15.9%
1Y
250.7%

NBIS: Long Term Power Contracts And Capacity Buildout Will Support AI Demand

Analysts kept their Nebius Group price target at US$211, citing updated assumptions for slightly lower discount rates, modestly higher revenue growth and profit margins, and a marginally lower future P/E that together support the existing valuation framework. Analyst Commentary Recent research on Nebius Group has leaned constructive, with several bullish analysts highlighting the company’s positioning in high performance compute and artificial intelligence infrastructure, as well as the support from large customer contracts.
FTNT
US$83.07
Fortinet
7D
10.2%
1Y
-14.2%

FTNT: Hardware Refresh Caution Will Contrast With Stronger Margins And Buybacks

Analysts have nudged their implied fair value for Fortinet lower from about $110 to $108, as a reduced future P/E assumption and more cautious views on hardware refresh demand offset still solid revenue and billings metrics reflected in recent research updates. Analyst Commentary Recent research has been mixed, but there are still clear pockets of optimism around Fortinet that center on execution, earnings quality, and how those feed into valuation support.
FROG
US$59.63
JFrog
7D
4.8%
1Y
73.1%