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U.S. Systems Software Industry Analysis

UpdatedMar 04, 2026
DataAggregated Company Financials
Companies70
  • 7D4.1%
  • 3M-18.2%
  • 1Y-1.3%
  • YTDn/a

Over the last 7 days, the Systems Software industry has dropped 1.2%, driven by Nebius Group declining 15%. However, the industry is down 6.5% over the past year. Looking forward, 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
Thu, 05 Mar 2026US$3.9tUS$429.4bUS$140.5b25.7x27.9x9.1x
Sat, 31 Jan 2026US$4.3tUS$429.2bUS$140.0b30x30.8x10x
Mon, 29 Dec 2025US$4.9tUS$416.9bUS$125.7b37.7x38.8x11.7x
Wed, 26 Nov 2025US$4.8tUS$413.7bUS$123.2b37.4x38.8x11.6x
Fri, 24 Oct 2025US$5.4tUS$399.7bUS$120.0b39.8x45x13.5x
Sun, 21 Sep 2025US$5.5tUS$399.6bUS$120.0b37.8x45.7x13.7x
Tue, 19 Aug 2025US$5.2tUS$397.2bUS$120.1b37.7x43.5x13.2x
Thu, 17 Jul 2025US$5.1tUS$383.0bUS$114.3b38.9x45.1x13.4x
Sat, 14 Jun 2025US$4.9tUS$383.0bUS$114.3b41.1x42.6x12.7x
Mon, 12 May 2025US$4.4tUS$380.4bUS$114.3b34.2x38.3x11.5x
Wed, 09 Apr 2025US$3.6tUS$372.1bUS$110.4b28.4x32.3x9.6x
Fri, 07 Mar 2025US$4.1tUS$371.2bUS$109.9b33.5x37.4x11.1x
Sun, 02 Feb 2025US$4.3tUS$379.4bUS$111.5b38x38.3x11.3x
Tue, 31 Dec 2024US$4.4tUS$362.5bUS$108.9b37x40x12x
Thu, 28 Nov 2024US$4.4tUS$361.1bUS$107.9b39.2x41x12.2x
Sat, 26 Oct 2024US$4.3tUS$351.0bUS$105.3b40x40.6x12.2x
Mon, 23 Sep 2024US$4.3tUS$350.5bUS$105.0b40.2x41.1x12.3x
Wed, 21 Aug 2024US$4.1tUS$349.1bUS$104.4b37.1x39.2x11.7x
Fri, 19 Jul 2024US$4.2tUS$333.6bUS$101.7b40.7x41.2x12.5x
Sun, 16 Jun 2024US$4.2tUS$333.7bUS$101.6b38.8x41x12.5x
Tue, 14 May 2024US$3.6tUS$280.1bUS$90.5b38.5x39.3x12.7x
Thu, 11 Apr 2024US$3.7tUS$271.0bUS$87.1b39.8x42x13.5x
Sat, 09 Mar 2024US$3.5tUS$270.9bUS$87.1b39.7x40.3x13x
Mon, 05 Feb 2024US$3.7tUS$286.6bUS$85.8b41.5x42.7x12.8x
Wed, 03 Jan 2024US$3.3tUS$276.8bUS$80.3b41.4x41.1x11.9x
Fri, 01 Dec 2023US$3.3tUS$276.4bUS$79.9b42.3x41.8x12.1x
Sun, 29 Oct 2023US$2.9tUS$280.2bUS$79.7b41.7x36.8x10.5x
Tue, 26 Sep 2023US$2.9tUS$273.4bUS$74.8b42.3x38.2x10.5x
Thu, 24 Aug 2023US$2.9tUS$272.8bUS$74.5b42.3x39.3x10.8x
Sat, 22 Jul 2023US$3.0tUS$262.2bUS$68.2b48.3x44.2x11.5x
Mon, 19 Jun 2023US$3.0tUS$262.1bUS$68.3b45.1x43.9x11.4x
Wed, 17 May 2023US$2.7tUS$261.1bUS$68.0b41.2x39.7x10.3x
Fri, 14 Apr 2023US$2.5tUS$256.9bUS$65.0b44.8x39.2x9.9x
Sun, 12 Mar 2023US$2.2tUS$256.7bUS$65.2b41.9x33.9x8.6x
Price to Earnings Ratio

33.9x


Total Market Cap: US$2.2tTotal Earnings: US$65.2bTotal Revenue: US$256.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Systems Software Industry Price to Earnings3Y Average 40x202420252026
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 27.5x which is lower than its 3-year average PE of 40.0x.
  • The 3-year average PS ratio of 11.8x is higher than the industry's current PS ratio of 9.0x.
Past Earnings Growth
  • The earnings for companies in the Systems Software industry have grown 29% per year over the last three years.
  • Revenues for these companies have grown 19% 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-1.39%
Tech-2.43%
Software5.20%
Systems Software4.10%
Application Software7.76%
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$405.051.1%
+US$33.0b		1.0%PE25.2x
ORCL OracleUS$152.373.0%
+US$12.9b		-5.7%PE28.4x
PANW Palo Alto NetworksUS$158.569.5%
+US$11.2b		-14.0%PE100.9x
CRWD CrowdStrike HoldingsUS$407.6812.2%
+US$11.2b		11.6%PS21.4x
NOW ServiceNowUS$113.869.2%
+US$10.1b		-37.8%PE68.1x

Latest News

CRWD
US$407.68
CrowdStrike Holdings
7D
12.2%
1Y
11.6%
GTLB
US$25.05
GitLab
7D
-3.5%
1Y
-59.5%
ORCL
US$152.37
Oracle
7D
3.0%
1Y
-5.7%
OSPN
US$10.53
OneSpan
7D
-5.5%
1Y
-36.8%
FTNT
US$82.79
Fortinet
7D
7.0%
1Y
-22.5%

FTNT: Hardware Dependence And Fading Refresh Cycle Will Pressure Future Returns

We are trimming our Fortinet fair value estimate to $68.00 from $70.25 as analysts factor in slower expected revenue growth, ongoing firewall hardware refresh risk, and a lower future P/E multiple around 25.6x, partly offset by a higher projected profit margin near 25.7%. Analyst Commentary Recent research has highlighted a more cautious tone around Fortinet, with several bearish analysts flagging risks around hardware reliance, growth sustainability, and valuation.
NOW
US$113.86
ServiceNow
7D
9.2%
1Y
-37.8%

NOW: Future AI And Cybersecurity Expansion Will Drive Long Term Upside

Analysts have revised their ServiceNow price target from about $904 to roughly $133. This reflects updated views on fair value, discount rate, revenue growth, profit margin, and future P/E assumptions.
TDC
US$28.72
Teradata
7D
-5.6%
1Y
22.1%
CHKP
US$158.04
Check Point Software Technologies
7D
3.4%
1Y
-28.7%

CHKP: Limited China Exposure Will Support AI Security Partnerships Going Forward

Analysts have reduced their price target for Check Point Software Technologies by $13.02 to $204.61. This reflects updated assumptions around discount rates, profitability, and revenue growth after a series of mixed reactions to recent results and sector research.
XTKG
US$1.34
X3 Holdings
7D
-25.2%
1Y
-98.9%
NTSK
US$10.59
Netskope
7D
-3.6%
1Y
n/a
MSFT
US$405.05
Microsoft
7D
1.1%
1Y
1.0%
PATH
US$11.07
UiPath
7D
11.4%
1Y
-8.3%
PANW
US$158.56
Palo Alto Networks
7D
9.5%
1Y
-14.0%

PANW: AI Security Platform Consolidation Will Drive Future Share Repricing

The updated analyst price target for Palo Alto Networks has been reduced to $209.61 from $226.65 as analysts trim valuation multiples and fair value assumptions following Q2 earnings, while many still highlight resilient cybersecurity demand and limited disruption from emerging AI developer tools. Analyst Commentary Street research on Palo Alto Networks has turned more cautious on valuation multiples, even as many firms still flag resilient demand for cybersecurity platforms and limited impact from new AI developer tools such as Claude Code Security.
PRGS
US$38.70
Progress Software
7D
-5.6%
1Y
-30.8%

PRGS: AI And Buybacks Will Support A More Constructive Forward Outlook

Analysts have adjusted their view on Progress Software, with the latest research indicating a modest change in the price target in dollar terms as they refine assumptions around the discount rate, revenue growth, profit margins, and future P/E expectations. Analyst Commentary Recent research on Progress Software has included both upward and downward price target revisions, which signals that opinion is mixed and that the risk and reward trade off is being reassessed.
AIP
US$16.46
Arteris
7D
-3.2%
1Y
95.7%

AIP: Index Addition And Expanding Design Wins Will Likely Support Upside

Analysts have raised their Arteris price target by $1 to $20.25, citing updates to revenue growth assumptions, profit margin outlook, discount rate inputs, and future P/E estimates reflected in recent Street research. Analyst Commentary Bullish Takeaways Bullish analysts highlight that the higher price target to $20.25 reflects refreshed assumptions on revenue growth and profitability, which they see as better aligned with recent Street modeling.
NBIS
US$97.78
Nebius Group
7D
-7.9%
1Y
224.1%

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.