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U.S. Systems Software Industry Analysis

UpdatedFeb 26, 2026
DataAggregated Company Financials
Companies71
  • 7D-1.0%
  • 3M-20.5%
  • 1Y-4.8%
  • YTDn/a

Over the last 7 days, the Systems Software industry has dropped 3.4%, driven by a pullback from Microsoft of 2.0%. The industry has fallen 7.8% in the last 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
Thu, 26 Feb 2026US$3.9tUS$429.2bUS$140.6b25.5x27.8x9.1x
Sat, 24 Jan 2026US$4.5tUS$416.9bUS$125.7b33x35.7x10.8x
Mon, 22 Dec 2025US$4.8tUS$416.9bUS$125.7b36.6x38.5x11.6x
Wed, 19 Nov 2025US$5.0tUS$413.3bUS$123.2b35.3x40.6x12.1x
Fri, 17 Oct 2025US$5.4tUS$399.7bUS$120.0b39.7x45.2x13.6x
Sun, 14 Sep 2025US$5.3tUS$399.6bUS$120.0b37.2x44.3x13.3x
Tue, 12 Aug 2025US$5.2tUS$397.1bUS$120.1b38.1x43.6x13.2x
Thu, 10 Jul 2025US$5.1tUS$383.0bUS$114.3b38.7x44.8x13.4x
Sat, 07 Jun 2025US$4.7tUS$381.3bUS$114.0b38.2x41.3x12.3x
Mon, 05 May 2025US$4.4tUS$380.1bUS$114.2b34.1x38.2x11.5x
Wed, 02 Apr 2025US$3.8tUS$372.2bUS$110.4b30.6x34.4x10.2x
Fri, 28 Feb 2025US$4.2tUS$370.8bUS$109.9b32.9x37.8x11.2x
Sun, 26 Jan 2025US$4.5tUS$362.5bUS$108.9b38.4x41.5x12.5x
Tue, 24 Dec 2024US$4.4tUS$362.5bUS$108.9b38x40.5x12.2x
Thu, 21 Nov 2024US$4.3tUS$360.6bUS$107.8b42.2x40x11.9x
Sat, 19 Oct 2024US$4.2tUS$350.5bUS$105.1b39.9x40.1x12x
Mon, 16 Sep 2024US$4.2tUS$350.5bUS$105.0b38.9x40.3x12.1x
Wed, 14 Aug 2024US$3.9tUS$348.9bUS$104.3b35.9x37.8x11.3x
Fri, 12 Jul 2024US$4.4tUS$333.6bUS$101.7b40.1x43x13.1x
Sun, 09 Jun 2024US$3.6tUS$280.7bUS$91.2b39.9x39.8x12.9x
Tue, 07 May 2024US$3.6tUS$280.0bUS$91.3b41.4x38.9x12.7x
Thu, 04 Apr 2024US$3.6tUS$271.0bUS$87.0b38.2x41.5x13.3x
Sat, 02 Mar 2024US$3.6tUS$270.6bUS$87.0b39.2x41.4x13.3x
Mon, 29 Jan 2024US$3.6tUS$277.3bUS$80.4b41.1x44.8x13x
Wed, 27 Dec 2023US$3.3tUS$276.8bUS$80.3b41.6x41.6x12.1x
Fri, 24 Nov 2023US$3.3tUS$276.0bUS$79.7b42.3x41x11.9x
Sun, 22 Oct 2023US$2.9tUS$273.4bUS$74.8b41.8x39x10.7x
Tue, 19 Sep 2023US$3.0tUS$273.4bUS$74.8b42.3x39.5x10.8x
Thu, 17 Aug 2023US$2.9tUS$272.4bUS$74.3b43.1x38.6x10.5x
Sat, 15 Jul 2023US$3.0tUS$262.2bUS$68.2b47.3x44.3x11.5x
Mon, 12 Jun 2023US$2.9tUS$262.1bUS$68.3b43.6x41.9x10.9x
Wed, 10 May 2023US$2.7tUS$260.8bUS$67.1b41x39.6x10.2x
Fri, 07 Apr 2023US$2.6tUS$256.9bUS$65.2b43.8x39.1x9.9x
Sun, 05 Mar 2023US$2.3tUS$256.5bUS$65.2b42.3x35x8.9x
Price to Earnings Ratio

35x


Total Market Cap: US$2.3tTotal Earnings: US$65.2bTotal Revenue: US$256.5bTotal 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 26.8x 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 8.8x.
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 Market0.90%
Tech2.11%
Software-0.63%
Systems Software-1.01%
Application Software0.30%
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$400.600.5%
+US$15.9b		2.1%PE24.9x
NBIS Nebius GroupUS$106.124.2%
+US$1.1b		194.9%PE925.9x
ADEA AdeiaUS$20.6711.5%
+US$234.4m		28.9%PE20.4x
PRGS Progress SoftwareUS$41.0114.5%
+US$219.0m		-26.1%PE23.6x
APPN AppianUS$26.339.4%
+US$171.2m		-20.2%PE1579.4x

Latest News

XPER
US$5.56
Xperi
7D
2.4%
1Y
-35.0%
NOW
US$104.23
ServiceNow
7D
-3.3%
1Y
-44.7%
MSFT
US$400.60
Microsoft
7D
0.5%
1Y
2.1%
ADEA
US$20.67
Adeia
7D
11.5%
1Y
28.9%
PANW
US$144.84
Palo Alto Networks
7D
-4.9%
1Y
-23.6%

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.
ORCL
US$147.89
Oracle
7D
-5.3%
1Y
-14.3%

ORCL: AI Infrastructure Buildout And Debt Funding Will Drive Future Upside

Analysts have trimmed their average price targets on Oracle by around $20 to $30. The changes reflect recent rating adjustments and revised expectations for fair value, discount rate, revenue growth, profit margins, and future P/E assumptions.
PRGS
US$41.01
Progress Software
7D
14.5%
1Y
-26.1%

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$17.01
Arteris
7D
18.2%
1Y
85.5%

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.
APPN
US$26.33
Appian
7D
9.4%
1Y
-20.2%
ZS
US$155.70
Zscaler
7D
-9.5%
1Y
-20.5%

ZS: Future Returns Will Rely On Zero Trust AI Security Leadership

Narrative Update: Zscaler We trim our Zscaler fair value estimate by about $13 to $304, reflecting lower assumed profit margins and a slightly less aggressive future P/E multiple, while analysts broadly reduce price targets on the stock even as they continue to highlight its Zero Trust leadership, AI security exposure, and potential for earnings beats. Analyst Commentary Recent Street research on Zscaler has shifted toward lower price targets, but most firms still frame the company as a key Zero Trust and AI security player with ongoing execution questions rather than a broken growth story.
FTNT
US$77.35
Fortinet
7D
-4.1%
1Y
-29.0%
CRWD
US$363.31
CrowdStrike Holdings
7D
-12.6%
1Y
-7.9%

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.
CHKP
US$152.84
Check Point Software Technologies
7D
-6.8%
1Y
-30.8%
NBIS
US$106.12
Nebius Group
7D
4.2%
1Y
194.9%

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.
FROG
US$38.76
JFrog
7D
-18.6%
1Y
3.6%
AISP
US$2.81
Airship AI Holdings
7D
16.1%
1Y
-37.2%

Why Investors Shouldn't Be Surprised By Airship AI Holdings, Inc.'s (NASDAQ:AISP) 53% Share Price Surge

Jan 17
Why Investors Shouldn't Be Surprised By Airship AI Holdings, Inc.'s (NASDAQ:AISP) 53% Share Price Surge