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U.S. Systems Software Industry Analysis

UpdatedMar 09, 2026
DataAggregated Company Financials
Companies70
  • 7D5.1%
  • 3M-18.8%
  • 1Y0.8%
  • YTDn/a

In the last week, the Systems Software industry is up 5.1%, with Microsoft up 4.1%. The industry has been flat over the past 12 months despite the gain this week. As for the next few years, earnings are expected to grow by 16% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 09 Mar 2026US$4.1tUS$429.7bUS$140.7b26.8x28.8x9.4x
Wed, 04 Feb 2026US$4.2tUS$429.2bUS$140.0b29.2x30.2x9.8x
Fri, 02 Jan 2026US$4.8tUS$416.9bUS$125.7b37.1x38.3x11.6x
Sun, 30 Nov 2025US$4.9tUS$413.8bUS$123.2b37.6x39.9x11.9x
Tue, 28 Oct 2025US$5.5tUS$399.7bUS$120.0b40.4x45.6x13.7x
Thu, 25 Sep 2025US$5.4tUS$399.6bUS$120.0b37.2x45.1x13.6x
Sat, 23 Aug 2025US$5.1tUS$397.5bUS$120.0b37x42.2x12.8x
Mon, 21 Jul 2025US$5.2tUS$383.0bUS$114.3b39.2x45.6x13.6x
Wed, 18 Jun 2025US$4.9tUS$383.0bUS$114.3b41.9x42.9x12.8x
Fri, 16 May 2025US$4.5tUS$380.6bUS$114.3b35.8x39.8x11.9x
Sun, 13 Apr 2025US$3.9tUS$372.1bUS$110.4b30.5x35.1x10.4x
Tue, 11 Mar 2025US$4.0tUS$371.2bUS$109.8b30.5x36.5x10.8x
Thu, 06 Feb 2025US$4.2tUS$379.1bUS$111.5b39.5x38.1x11.2x
Sat, 04 Jan 2025US$4.2tUS$362.5bUS$108.9b38x39x11.7x
Mon, 02 Dec 2024US$4.4tUS$361.1bUS$108.0b39.2x40.3x12.1x
Wed, 30 Oct 2024US$4.3tUS$351.0bUS$105.3b42.8x40.7x12.2x
Fri, 27 Sep 2024US$4.3tUS$350.5bUS$105.1b40.3x40.7x12.2x
Sun, 25 Aug 2024US$4.1tUS$349.1bUS$104.4b37.8x38.9x11.6x
Tue, 23 Jul 2024US$4.1tUS$333.6bUS$101.7b40.4x40.6x12.4x
Thu, 20 Jun 2024US$4.2tUS$333.7bUS$101.6b39.1x41.4x12.6x
Sat, 18 May 2024US$3.6tUS$279.9bUS$90.9b42.2x39.9x13x
Mon, 15 Apr 2024US$3.6tUS$271.0bUS$87.1b39.6x41.5x13.3x
Wed, 13 Mar 2024US$3.5tUS$270.9bUS$87.1b40.4x40.2x12.9x
Fri, 09 Feb 2024US$3.6tUS$270.0bUS$85.0b39.1x42.5x13.4x
Sun, 07 Jan 2024US$3.3tUS$276.8bUS$80.3b41.1x40.7x11.8x
Tue, 05 Dec 2023US$3.3tUS$276.7bUS$79.9b42.3x41.5x12x
Thu, 02 Nov 2023US$3.0tUS$280.3bUS$79.8b42.3x37.8x10.8x
Sat, 30 Sep 2023US$2.8tUS$273.4bUS$74.8b42.3x37.9x10.4x
Mon, 28 Aug 2023US$2.9tUS$272.8bUS$74.5b42.3x38.9x10.6x
Wed, 26 Jul 2023US$3.1tUS$262.2bUS$68.2b49x45x11.7x
Fri, 23 Jun 2023US$2.9tUS$262.1bUS$68.3b43.9x42.7x11.1x
Sun, 21 May 2023US$2.8tUS$261.1bUS$68.0b41.6x40.7x10.6x
Tue, 18 Apr 2023US$2.5tUS$256.9bUS$65.0b44.5x39x9.9x
Thu, 16 Mar 2023US$2.3tUS$256.8bUS$65.2b41.7x35.9x9.1x
Price to Earnings Ratio

35.9x


Total Market Cap: US$2.3tTotal Earnings: US$65.2bTotal Revenue: US$256.8bTotal 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 28.8x 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 9.4x.
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-2.17%
Tech-0.39%
Software6.21%
Systems Software5.07%
Application Software8.79%
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$408.962.6%
+US$77.3b		7.6%PE25.5x
ORCL OracleUS$152.965.2%
+US$21.7b		-1.4%PE28.5x
NOW ServiceNowUS$124.3415.1%
+US$17.1b		-26.9%PE74.4x
CRWD CrowdStrike HoldingsUS$428.9915.3%
+US$15.0b		28.6%PS22.6x
PANW Palo Alto NetworksUS$165.0510.8%
+US$13.2b		-8.8%PE105.1x

Latest News

AIP
US$14.52
Arteris
7D
-14.7%
1Y
95.7%

AIP: AI Era Chip Adoption Will Drive Stronger Prospects Ahead

Analysts have raised their price target on Arteris from $16.00 to $24.00, citing updated assumptions around revenue growth, profitability, discount rates and future P/E that they believe better reflect the company’s prospects. Analyst Commentary Recent Street research around Arteris highlights a clear tilt toward more optimistic assumptions on the stock, as reflected in higher price targets that analysts view as better aligned with their updated models on revenue, profitability and valuation multiples.
MSFT
US$408.96
Microsoft
7D
2.6%
1Y
7.6%
ADEA
US$19.87
Adeia
7D
-4.0%
1Y
33.0%

ADEA: Disney Resolution And New Licensing Will Shape Future Credibility

Narrative update on Adeia The analyst price target for Adeia has been raised from $24 to $30 as analysts point to record quarterly results, new licensing deals, and guidance that suggests potential for revenue and free cash flow expansion beyond 2025. Analyst Commentary Recent research points to a more constructive stance on Adeia, with several firms lifting their price targets to $30 and citing record quarterly revenue, profits linked to a successful patent defense, and new licensing agreements with Microsoft and a semiconductor customer.
GTLB
US$24.91
GitLab
7D
-5.3%
1Y
-55.8%

GTLB: AI Adoption And Share Buybacks Will Support Future Upside

Our fair value estimate for GitLab has been revised down from $51.15 to $34.56, reflecting analysts' lower long term growth, profitability, and future P/E assumptions following reduced FY27 forecasts, competitive concerns around AI coding tools, and more cautious outlooks on demand and execution. Analyst Commentary Street research has turned more cautious on GitLab, with a broad reset of FY27 expectations and a wide range of revised price targets.
NOW
US$124.34
ServiceNow
7D
15.1%
1Y
-26.9%
ZS
US$164.06
Zscaler
7D
11.6%
1Y
-21.4%

ZS: Zero Trust And AI Security Plus AI Defense Will Drive Future Upside

The analyst price target for Zscaler in our model has been revised lower from about $389 to about $326 as analysts factor in more moderate revenue growth assumptions, slightly higher discount rates, improved margin expectations, and lower future P/E multiples amid broader multiple compression across security software peers. Analyst Commentary Recent Street research on Zscaler reflects a mix of reduced price targets and generally supportive ratings, with many firms maintaining positive views on execution, margins, and the long term opportunity despite sector wide multiple compression.
PANW
US$165.05
Palo Alto Networks
7D
10.8%
1Y
-8.8%

AI Security And Identity Platforms Will Shape A Moderately Cautious Long Term Outlook

Catalysts About Palo Alto Networks Palo Alto Networks provides cybersecurity platforms that protect networks, cloud environments, identities and endpoints for enterprises around the world. What are the underlying business or industry changes driving this perspective?
TDC
US$28.02
Teradata
7D
-11.0%
1Y
21.6%

TDC: Higher Earnings Power And AI Agent Adoption Will Drive Re Rating

The analyst fair value estimate for Teradata has moved from $39.79 to $49.00, reflecting higher Street price targets as analysts factor in updated views on revenue growth, profitability, and future P/E assumptions. Analyst Commentary Recent Street research on Teradata has leaned constructive, with several bullish analysts lifting their price targets and reinforcing a more supportive sentiment around the stock.
CHKP
US$165.22
Check Point Software Technologies
7D
6.6%
1Y
-26.7%
ORCL
US$152.96
Oracle
7D
5.2%
1Y
-1.4%
DLB
US$65.29
Dolby Laboratories
7D
-1.9%
1Y
-21.7%

DLB: Media Partnerships And Buybacks Will Support Measured Future Returns

Analysts are keeping their price target for Dolby Laboratories steady at $68.00. This points to largely unchanged expectations around fair value, discount rate, revenue growth, profit margin and future P/E assumptions.
CRWD
US$428.99
CrowdStrike Holdings
7D
15.3%
1Y
28.6%

CRWD: AI Security Platform And Identity Expansion Will Temper Crowded Trade Fears

Narrative Update on CrowdStrike Holdings Our updated view reflects a lower analyst price target of $374.82, down from $414.96, as analysts recalibrate revenue growth, profit margin and future P/E assumptions, while still highlighting strong Q4 execution, resilient ARR trends and ongoing AI and platform tailwinds across recent research. Analyst Commentary Across recent research, you are seeing a mix of optimism on CrowdStrike's execution and platform, paired with a clear reset in expectations as many firms trim price targets.
NBIS
US$89.33
Nebius Group
7D
-2.0%
1Y
219.1%

NBIS: Debt Funding And Contract Concentration Will Pressure Future Share Price

Analysts have raised their Nebius Group price targets, including one increase to $232 from $211, citing higher long term revenue assumptions and a lower future P/E multiple, while fair value in this model remains at $70. Analyst Commentary Recent research coverage on Nebius Group has centered on its positioning as a full stack AI infrastructure provider, its relationship with large cloud customers, and how these factors align with current valuation expectations.
FTNT
US$83.67
Fortinet
7D
5.9%
1Y
-17.4%

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.
PRGS
US$39.49
Progress Software
7D
-5.7%
1Y
-31.0%

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.
AISP
US$2.65
Airship AI Holdings
7D
-6.4%
1Y
-19.7%

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