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

U.S. Systems Software Industry Analysis

UpdatedFeb 20, 2026
DataAggregated Company Financials
Companies71
  • 7D-0.7%
  • 3M-16.8%
  • 1Y-8.8%
  • YTDn/a

Over the last 7 days, the Systems Software industry has dropped 1.2%, driven by Microsoft declining 1.2%. Meanwhile, ServiceNow actually outperformed within the industry, gaining 7.2% in the last week. However, the industry is down 9.0% over the past year. Earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 20 Feb 2026US$4.0tUS$429.1bUS$140.5b27.6x28.2x9.3x
Sun, 18 Jan 2026US$4.6tUS$416.9bUS$125.7b34.4x36.6x11x
Tue, 16 Dec 2025US$4.8tUS$416.9bUS$125.7b36x38.3x11.5x
Thu, 13 Nov 2025US$5.2tUS$413.3bUS$123.2b37.9x42.3x12.6x
Sat, 11 Oct 2025US$5.5tUS$399.7bUS$120.0b39.5x45.8x13.7x
Mon, 08 Sep 2025US$5.0tUS$398.0bUS$120.0b36.1x41.9x12.6x
Wed, 06 Aug 2025US$5.3tUS$395.6bUS$119.5b38.5x44.6x13.5x
Fri, 04 Jul 2025US$5.1tUS$383.0bUS$114.3b40.8x45.1x13.4x
Sun, 01 Jun 2025US$4.6tUS$381.1bUS$114.1b36.8x40.5x12.1x
Tue, 29 Apr 2025US$4.0tUS$371.8bUS$110.4b31.8x36x10.7x
Thu, 27 Mar 2025US$4.0tUS$372.1bUS$110.4b31.3x36.6x10.9x
Sat, 22 Feb 2025US$4.2tUS$370.8bUS$109.8b33.8x38.3x11.3x
Mon, 20 Jan 2025US$4.3tUS$362.5bUS$108.9b37.2x39.7x11.9x
Wed, 18 Dec 2024US$4.6tUS$362.5bUS$108.9b39.6x41.9x12.6x
Fri, 15 Nov 2024US$4.4tUS$360.5bUS$107.8b44.7x40.7x12.2x
Sun, 13 Oct 2024US$4.2tUS$350.5bUS$105.1b42.5x40.2x12.1x
Tue, 10 Sep 2024US$4.0tUS$349.6bUS$104.5b36.3x38x11.4x
Thu, 08 Aug 2024US$3.8tUS$348.7bUS$104.2b36.9x36.9x11x
Sat, 06 Jul 2024US$4.4tUS$333.6bUS$101.7b40.3x42.8x13x
Mon, 03 Jun 2024US$3.5tUS$280.2bUS$91.0b39x38.9x12.6x
Wed, 01 May 2024US$3.4tUS$280.5bUS$90.9b39.7x36.9x12x
Fri, 29 Mar 2024US$3.6tUS$271.0bUS$87.0b40.3x41.7x13.4x
Sun, 25 Feb 2024US$3.5tUS$270.5bUS$86.6b38.4x40.9x13.1x
Tue, 23 Jan 2024US$3.5tUS$276.8bUS$80.3b41.3x44.2x12.8x
Thu, 21 Dec 2023US$3.3tUS$276.8bUS$80.3b41.5x41.6x12.1x
Sat, 18 Nov 2023US$3.3tUS$276.0bUS$79.8b42.3x41.2x11.9x
Mon, 16 Oct 2023US$3.0tUS$273.4bUS$74.8b42.3x39.5x10.8x
Wed, 13 Sep 2023US$3.0tUS$273.4bUS$74.8b42.3x40.7x11.1x
Fri, 11 Aug 2023US$2.9tUS$272.3bUS$74.3b44.9x38.9x10.6x
Sun, 09 Jul 2023US$2.9tUS$262.2bUS$68.2b44.6x43.2x11.2x
Tue, 06 Jun 2023US$2.9tUS$262.1bUS$68.3b43.4x42.8x11.2x
Thu, 04 May 2023US$2.6tUS$260.8bUS$67.1b42.3x39x10x
Sat, 01 Apr 2023US$2.5tUS$256.9bUS$65.2b44.6x38.9x9.9x
Mon, 27 Feb 2023US$2.2tUS$243.0bUS$63.9b42.5x34.1x9x
Price to Earnings Ratio

34.1x


Total Market Cap: US$2.2tTotal Earnings: US$63.9bTotal Revenue: US$243.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Systems Software Industry Price to Earnings3Y Average 40.1x202420252026
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 28.0x which is lower than its 3-year average PE of 40.1x.
  • The 3-year average PS ratio of 11.8x is higher than the industry's current PS ratio of 9.2x.
Past Earnings Growth
  • The earnings for companies in the Systems Software industry have grown 30% per year over the last three years.
  • Revenues for these companies have grown 21% 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 Market0.64%
Tech0.58%
Software0.19%
Systems Software-0.72%
Application Software2.39%
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
PANW Palo Alto NetworksUS$150.99-7.3%
US$9.7b		-24.1%PE96.1x
NBIS Nebius GroupUS$107.6119.9%
+US$4.5b		132.7%PE938.9x
NOW ServiceNowUS$107.374.0%
+US$4.3b		-44.5%PE64.3x
CRWD CrowdStrike HoldingsUS$422.142.6%
+US$2.7b		-3.2%PS23.3x
CVLT Commvault SystemsUS$92.345.8%
+US$221.6m		-50.1%PE46.7x

Latest News

PANW
US$150.99
Palo Alto Networks
7D
-7.3%
1Y
-24.1%
APPN
US$24.54
Appian
7D
9.7%
1Y
-29.1%
DLB
US$64.25
Dolby Laboratories
7D
-3.5%
1Y
-22.0%

DLB: Broad Media Partnerships And Buybacks Will Support Steady Returns

Analysts maintained their Dolby Laboratories fair value estimate at $68.00, with only minor adjustments to assumptions around discount rate, revenue growth, profit margin, and future P/E informing the updated price target rationale. What's in the News Dolby updated earnings guidance for the second quarter of fiscal 2026, with total revenue estimated at US$375 million to US$405 million and GAAP diluted EPS expected at US$0.94 to US$1.09.
GTLB
US$28.74
GitLab
7D
-2.8%
1Y
-57.4%
FTNT
US$81.67
Fortinet
7D
-3.1%
1Y
-28.5%
CRWD
US$422.14
CrowdStrike Holdings
7D
2.6%
1Y
-3.2%

CRWD: Future Performance Will Reflect AI Security Leadership And Expanding Identity Platform

Narrative Update: CrowdStrike Holdings The updated analyst price target for CrowdStrike edges higher to about $547 from roughly $533, as analysts factor in slightly stronger modeled revenue growth and profit margins, along with a more moderate future P/E assumption and mixed, but generally constructive, Street research around AI security positioning and recent rating changes. Analyst Commentary Recent research on CrowdStrike gives you a mixed but generally constructive picture, with several firms adjusting price targets and ratings as they reassess AI risk, software multiples, and security spending trends.
MSFT
US$398.46
Microsoft
7D
-0.7%
1Y
-2.4%

MSFT: AI Self Sufficiency And Global Data Center Expansion Will Sustain Cloud Leadership

Our analyst price target for Microsoft has been nudged lower by a few dollars to reflect a slightly reduced fair value estimate of about $596, as analysts balance ongoing enthusiasm around AI driven capital spending with a wave of recent target trims. These largely stem from valuation discipline and concerns that prior long term assumptions, including P/E and margin expectations, may have been set too high.
RBRK
US$54.16
Rubrik
7D
1.8%
1Y
-25.0%

Cyber Resilience And AI Operations Will Create Long Term Upside Potential

Catalysts About Rubrik Rubrik provides cloud based cyber resilience, identity security and AI operations software focused on protecting and recovering critical enterprise data and systems. What are the underlying business or industry changes driving this perspective?
CHKP
US$159.05
Check Point Software Technologies
7D
-3.3%
1Y
-27.4%
NBIS
US$107.61
Nebius Group
7D
19.9%
1Y
132.7%

NBIS: Microsoft Contract And 2.5GW Power Sourcing Will Support Future Capacity

Analysts have kept their Nebius Group price target steady at $211, but are now using slightly higher discount rates and a richer future P/E of about 34x. This reflects a mix of bullish views on the Microsoft contract, cautious revenue and margin assumptions, and a wide range of initial ratings from neutral to top pick calls.
NOW
US$107.37
ServiceNow
7D
4.0%
1Y
-44.5%

NOW: AI Partnerships And Share Repurchases Will Drive Future Upside

Analysts have trimmed their price target on ServiceNow to about $189 from roughly $226, citing updated assumptions that include slightly lower discount rates, a future P/E of about 62.5, and revised expectations for revenue growth and profit margins that they believe better reflect the company’s current risk and return profile. What's in the News Kearney and ServiceNow formed a partnership around the ServiceNow AI Platform to support enterprise-wide business process reengineering, targeting gains in operational efficiency, workflow speed, and AI driven process orchestration across functions such as sales, operations, and IT (Key Developments).
FROG
US$50.29
JFrog
7D
-5.6%
1Y
28.3%
ORCL
US$156.54
Oracle
7D
0.04%
1Y
-11.1%
ZS
US$168.99
Zscaler
7D
-1.1%
1Y
-18.4%

AI Security And Zero Trust Execution Risks Will Challenge Progress Yet Still Support Long-Term Upside

Catalysts About Zscaler Zscaler provides cloud delivered security services that help enterprises protect users, data and applications. What are the underlying business or industry changes driving this perspective?
GEN
US$22.34
Gen Digital
7D
-5.1%
1Y
-18.2%

Gen Digital (NASDAQ:GEN) Is Paying Out A Dividend Of $0.125

Feb 09
Gen Digital (NASDAQ:GEN) Is Paying Out A Dividend Of $0.125
CVLT
US$92.34
Commvault Systems
7D
5.8%
1Y
-50.1%

CVLT: Reset Multiples And Higher Margins Will Create Future Upside Potential

Analysts have reset their price expectations for Commvault Systems, trimming the fair value estimate from about $175 to roughly $140 as they incorporate lower Street price targets, slightly higher discount rates, modestly softer revenue growth assumptions and a reduced future P/E, partly balanced by higher projected profit margins. Analyst Commentary Street research over the recent period has been dominated by a series of lower price targets for Commvault Systems, with multiple firms adjusting their views on valuation in light of changing sector multiples, security spending expectations and competitive considerations.