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U.S. Systems Software Industry Analysis

UpdatedJan 23, 2026
DataAggregated Company Financials
Companies69
  • 7D-2.4%
  • 3M-18.0%
  • 1Y-1.6%
  • YTDn/a

Over the last 7 days, the Systems Software industry has dropped 4.3%, driven by Microsoft declining 3.3%. However, the industry is down 3.4% over the past year. 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
Fri, 23 Jan 2026US$4.5tUS$416.9bUS$125.7b32.6x35.6x10.7x
Sun, 21 Dec 2025US$4.8tUS$416.9bUS$125.7b36.6x38.5x11.6x
Tue, 18 Nov 2025US$5.1tUS$413.3bUS$123.2b36x41.8x12.5x
Thu, 16 Oct 2025US$5.4tUS$399.7bUS$120.0b40.5x45.1x13.5x
Sat, 13 Sep 2025US$5.4tUS$399.6bUS$120.0b37.2x44.7x13.4x
Mon, 11 Aug 2025US$5.2tUS$397.1bUS$120.1b38.1x43.6x13.2x
Wed, 09 Jul 2025US$5.1tUS$383.0bUS$114.3b39.5x44.8x13.4x
Fri, 06 Jun 2025US$4.7tUS$381.3bUS$114.0b37.7x40.9x12.2x
Sun, 04 May 2025US$4.4tUS$380.1bUS$114.2b34.1x38.2x11.5x
Tue, 01 Apr 2025US$3.8tUS$372.1bUS$110.4b30.1x34.8x10.3x
Thu, 27 Feb 2025US$4.1tUS$370.8bUS$109.8b33.6x37.5x11.1x
Sat, 25 Jan 2025US$4.6tUS$362.5bUS$108.9b38.4x41.8x12.6x
Mon, 23 Dec 2024US$4.4tUS$362.5bUS$108.9b38.4x40.5x12.2x
Wed, 20 Nov 2024US$4.3tUS$360.6bUS$107.8b41.6x39.7x11.9x
Fri, 18 Oct 2024US$4.2tUS$350.5bUS$105.1b40x40.1x12x
Sun, 15 Sep 2024US$4.2tUS$350.5bUS$105.0b38.9x40.3x12.1x
Tue, 13 Aug 2024US$3.9tUS$348.8bUS$104.2b34.9x37.7x11.3x
Thu, 11 Jul 2024US$4.3tUS$333.6bUS$101.7b40.2x42.5x12.9x
Sat, 08 Jun 2024US$3.6tUS$280.7bUS$91.2b39.9x39.8x12.9x
Mon, 06 May 2024US$3.5tUS$280.0bUS$91.3b40.8x38.3x12.5x
Wed, 03 Apr 2024US$3.6tUS$271.0bUS$87.0b38.8x41.9x13.5x
Fri, 01 Mar 2024US$3.5tUS$270.5bUS$87.0b39.2x40.7x13.1x
Sun, 28 Jan 2024US$3.6tUS$277.3bUS$80.4b41.1x44.8x13x
Tue, 26 Dec 2023US$3.3tUS$276.8bUS$80.3b41.4x41.6x12.1x
Thu, 23 Nov 2023US$3.3tUS$276.0bUS$79.7b42.3x41.5x12x
Sat, 21 Oct 2023US$2.9tUS$273.4bUS$74.8b41.8x39x10.7x
Mon, 18 Sep 2023US$3.0tUS$273.4bUS$74.8b42.3x39.7x10.9x
Wed, 16 Aug 2023US$2.9tUS$272.4bUS$74.3b43.9x38.8x10.6x
Fri, 14 Jul 2023US$3.0tUS$262.2bUS$68.2b47.6x44.1x11.5x
Sun, 11 Jun 2023US$2.9tUS$262.1bUS$68.3b43.6x41.9x10.9x
Tue, 09 May 2023US$2.7tUS$260.8bUS$67.2b40x39.7x10.2x
Thu, 06 Apr 2023US$2.5tUS$256.9bUS$65.2b43.7x38.3x9.7x
Sat, 04 Mar 2023US$2.3tUS$256.5bUS$65.2b42.3x35x8.9x
Mon, 30 Jan 2023US$2.2tUS$242.8bUS$63.4b42.5x34.1x8.9x
Price to Earnings Ratio

34.1x


Total Market Cap: US$2.2tTotal 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 35.9x 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-0.28%
Tech-1.23%
Software-2.70%
Systems Software-2.35%
Application Software-3.46%
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
FTNT FortinetUS$77.621.7%
+US$966.7m		-20.3%PE30.8x
GTLB GitLabUS$37.437.7%
+US$450.4m		-41.5%PS7x
PATH UiPathUS$15.152.4%
+US$192.5m		9.9%PE35.3x
VRNS Varonis SystemsUS$34.792.4%
+US$97.9m		-21.4%PS6.7x
ADEA AdeiaUS$19.913.9%
+US$81.0m		49.1%PE29.7x

Latest News

ADEA
US$19.91
Adeia
7D
3.9%
1Y
49.1%
S
US$14.19
SentinelOne
7D
0.8%
1Y
-38.7%

S: Public Sector Compliance Gains Will Support Constructive Long Term Outlook

Analysts have kept their fair value estimate for SentinelOne steady at US$16.00. They cited only modest tweaks to assumptions around discount rate, revenue growth, profit margin and future P/E that did not justify a change in the price target.
PRGS
US$42.75
Progress Software
7D
4.5%
1Y
-21.0%
PATH
US$15.15
UiPath
7D
2.4%
1Y
9.9%

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$178.16
Check Point Software Technologies
7D
-5.5%
1Y
-9.3%
MSFT
US$451.14
Microsoft
7D
-1.9%
1Y
1.6%

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$128.56
ServiceNow
7D
-2.0%
1Y
-43.3%
NBIS
US$96.85
Nebius Group
7D
-6.8%
1Y
150.6%

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$77.62
Fortinet
7D
1.7%
1Y
-20.3%

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.
RBRK
US$65.10
Rubrik
7D
-5.7%
1Y
-7.4%
GTLB
US$37.43
GitLab
7D
7.7%
1Y
-41.5%
ORCL
US$178.18
Oracle
7D
-6.1%
1Y
-4.4%
PANW
US$182.27
Palo Alto Networks
7D
-2.9%
1Y
-2.7%
GEN
US$25.22
Gen Digital
7D
-4.4%
1Y
-8.3%

GEN: Solid Execution And Combined Model Will Support Future Share Upside

Narrative Update Analysts have trimmed their price target on Gen Digital from US$33 to US$29, citing peer group multiple compression. Recent results were viewed as solid, with growth metrics that support the ongoing potential of the combined model.
VRNS
US$34.79
Varonis Systems
7D
2.4%
1Y
-21.4%

VRNS: SaaS And AI Security Demand Will Support Future Upside

Analysts have trimmed their fair value estimate for Varonis Systems to about $50.15 from $51.84, reflecting lower Street price targets clustered around $45 to $50 as they weigh weaker on-prem renewals against ongoing SaaS traction, AI-related demand, and potential sponsor interest. Analyst Commentary Recent research around Varonis reflects a split view, with analysts weighing solid SaaS progress and AI interest against pressure from weaker on prem renewals and a more mixed read on execution.
NTSK
US$15.60
Netskope
7D
1.3%
1Y
n/a