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

U.S. Systems Software Industry Analysis

UpdatedJan 29, 2026
DataAggregated Company Financials
Companies70
  • 7D6.7%
  • 3M-13.2%
  • 1Y4.8%
  • YTDn/a

In the last week, the Systems Software industry is up 4.4%, with Microsoft up 5.7%. This takes the industry's 12 month performance to a gain of 3.3%. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 29 Jan 2026US$4.7tUS$417.0bUS$125.7b32.7x37.5x11.3x
Sat, 27 Dec 2025US$4.9tUS$416.9bUS$125.7b37.7x38.7x11.7x
Mon, 24 Nov 2025US$4.8tUS$413.7bUS$123.2b36.9x38.6x11.5x
Wed, 22 Oct 2025US$5.4tUS$399.7bUS$120.0b41x44.8x13.5x
Fri, 19 Sep 2025US$5.4tUS$399.6bUS$120.0b37.1x44.7x13.4x
Sun, 17 Aug 2025US$5.2tUS$397.2bUS$120.1b38x43.5x13.2x
Tue, 15 Jul 2025US$5.1tUS$383.0bUS$114.3b38.7x44.7x13.3x
Thu, 12 Jun 2025US$4.7tUS$381.3bUS$114.0b40.7x41.6x12.4x
Sat, 10 May 2025US$4.4tUS$380.4bUS$114.3b34.2x38.3x11.5x
Mon, 07 Apr 2025US$3.6tUS$372.1bUS$110.4b28.8x32.5x9.6x
Wed, 05 Mar 2025US$4.0tUS$370.9bUS$110.0b34.8x36.5x10.8x
Fri, 31 Jan 2025US$4.5tUS$379.4bUS$111.4b37.8x40.1x11.8x
Sun, 29 Dec 2024US$4.4tUS$362.5bUS$108.9b37.4x40x12x
Tue, 26 Nov 2024US$4.3tUS$360.9bUS$108.0b39.8x40.1x12x
Thu, 24 Oct 2024US$4.3tUS$350.5bUS$105.1b39.8x40.9x12.3x
Sat, 21 Sep 2024US$4.3tUS$350.5bUS$105.0b40.2x41.2x12.3x
Mon, 19 Aug 2024US$4.1tUS$348.9bUS$104.3b36.9x39x11.6x
Wed, 17 Jul 2024US$4.3tUS$333.6bUS$101.7b40.5x42.2x12.9x
Fri, 14 Jun 2024US$4.2tUS$333.7bUS$101.6b38.7x40.9x12.5x
Sun, 12 May 2024US$3.6tUS$280.1bUS$90.5b38.7x39.3x12.7x
Tue, 09 Apr 2024US$3.6tUS$271.0bUS$87.0b38.2x41.9x13.5x
Thu, 07 Mar 2024US$3.5tUS$270.9bUS$87.1b39.5x39.8x12.8x
Sat, 03 Feb 2024US$3.7tUS$286.6bUS$85.8b41.4x42.7x12.8x
Mon, 01 Jan 2024US$3.4tUS$276.8bUS$80.3b41.5x41.8x12.1x
Wed, 29 Nov 2023US$3.3tUS$276.2bUS$79.8b42.3x41.7x12x
Fri, 27 Oct 2023US$2.9tUS$280.2bUS$79.7b41.3x36.7x10.4x
Sun, 24 Sep 2023US$2.9tUS$273.4bUS$74.8b42.3x38.2x10.4x
Tue, 22 Aug 2023US$2.8tUS$272.8bUS$74.5b42.8x38x10.4x
Thu, 20 Jul 2023US$3.1tUS$262.2bUS$68.2b49.6x45.7x11.9x
Sat, 17 Jun 2023US$3.0tUS$262.1bUS$68.3b45.1x43.9x11.4x
Mon, 15 May 2023US$2.7tUS$261.1bUS$67.9b41.3x39.5x10.3x
Wed, 12 Apr 2023US$2.5tUS$256.9bUS$65.0b43.8x38.3x9.7x
Fri, 10 Mar 2023US$2.2tUS$256.7bUS$65.2b42.3x34.4x8.7x
Sun, 05 Feb 2023US$2.3tUS$243.0bUS$63.4b45.4x35.5x9.3x
Price to Earnings Ratio

35.5x


Total Market Cap: US$2.3tTotal Earnings: US$63.4bTotal Revenue: US$243.0bTotal 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 37.1x 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 Market0.90%
Tech3.55%
Software4.56%
Systems Software6.67%
Application Software0.021%
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$481.638.4%
+US$278.9b		8.9%PE34.1x
CRWD CrowdStrike HoldingsUS$469.195.2%
+US$5.9b		18.2%PS25.9x
FTNT FortinetUS$82.088.4%
+US$4.7b		-17.4%PE32.6x
NOW ServiceNowUS$129.623.4%
+US$4.5b		-43.3%PE77.7x
PANW Palo Alto NetworksUS$183.741.3%
+US$1.6b		-0.9%PE114.7x

Latest News

NOW
US$129.62
ServiceNow
7D
3.4%
1Y
-43.3%
CVLT
US$89.85
Commvault Systems
7D
-24.8%
1Y
-38.8%
FTNT
US$82.08
Fortinet
7D
8.4%
1Y
-17.4%
RBRK
US$63.19
Rubrik
7D
-1.8%
1Y
-14.7%

RBRK: Cyber Resilience Partnerships Will Support Future Repricing Potential

The analyst price target for Rubrik is trimmed slightly from about US$111.95 to about US$110.86, as analysts balance a mix of reduced targets around US$95 to US$100 with ongoing Overweight and Buy ratings that highlight expectations for solid annual recurring revenue and mid 20s percent sales growth. Analyst Commentary Recent research points to a mixed but generally constructive stance on Rubrik, with some analysts trimming price targets while others highlight upside over the next few months.
ZS
US$213.95
Zscaler
7D
2.7%
1Y
5.5%
FROG
US$60.08
JFrog
7D
10.9%
1Y
70.2%

FROG: Cloud And Security Momentum Will Support Stronger Outlook Through 2026

Analysts have nudged their JFrog fair value estimate to US$72.00, reflecting a modestly lower discount rate and slightly higher modeled profit margins in response to recent target hikes across the Street, tied to strong Q3 results, cloud and security momentum, and a more constructive multi year software outlook. Analyst Commentary Recent Street research on JFrog skews constructive, with several firms lifting price targets following Q3 results and updated sector views.
ADEA
US$18.37
Adeia
7D
-7.6%
1Y
40.7%
MSFT
US$481.63
Microsoft
7D
8.4%
1Y
8.9%
PANW
US$183.74
Palo Alto Networks
7D
1.3%
1Y
-0.9%

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.
ORCL
US$172.80
Oracle
7D
-0.6%
1Y
6.7%

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.
PRGS
US$41.41
Progress Software
7D
-3.0%
1Y
-26.4%

PRGS: AI Offerings And Buybacks Will Support Balanced Future Margin Profile

Analysts have recently adjusted their price targets on Progress Software in a mixed fashion, with one firm lifting its target by US$6 and others trimming theirs by US$3 and US$5. These moves reflect updated views on growth, margins and appropriate forward P/E multiples.
MNDY
US$126.15
monday.com
7D
-0.8%
1Y
-49.5%

MNDY: Upmarket Shift And AI Adoption Will Drive Medium Term Upside Potential

Narrative Update We are trimming our fair value estimate for monday.com to $182 from $195 as analysts reduce price targets across the group. They cite softer beats, elongated sales cycles, cautious guidance, and mixed small business trends, even as they highlight continuing upmarket progress, AI adoption, and multi product traction.
GEN
US$24.79
Gen Digital
7D
-1.6%
1Y
-10.3%

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$37.23
GitLab
7D
12.3%
1Y
-47.1%

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.
CRWD
US$469.19
CrowdStrike Holdings
7D
5.2%
1Y
18.2%

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.
DLB
US$61.19
Dolby Laboratories
7D
-1.5%
1Y
-24.1%

DLB: Technology Adoption And Solid Execution Will Support Future Share Gains

Narrative Update on Dolby Laboratories The analyst price target for Dolby Laboratories has shifted down to a range of about $85 to $95 per share. Analysts point to a solid fiscal Q4, guidance in line with expectations, and continued technology adoption despite macro headwinds as key reasons for the updated view.