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U.S. Software Industry Analysis

UpdatedSep 06, 2025
DataAggregated Company Financials
Companies408
  • 7D-1.2%
  • 3M4.6%
  • 1Y29.3%
  • YTD13.9%

Over the last 7 days, the Software industry has dropped 1.7%, driven by a pullback from Microsoft of 2.3%. In the past year, the industry has gained 28%. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 06 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.4x11.9x
Mon, 04 Aug 2025US$7.6tUS$611.0bUS$146.9b39.7x51.4x12.4x
Wed, 02 Jul 2025US$7.2tUS$599.0bUS$131.2b42.2x55.1x12.1x
Fri, 30 May 2025US$6.7tUS$594.0bUS$131.7b36.4x51.1x11.3x
Sun, 27 Apr 2025US$5.9tUS$581.1bUS$131.9b32x45x10.2x
Tue, 25 Mar 2025US$5.9tUS$582.9bUS$131.1b29.9x45.3x10.2x
Thu, 20 Feb 2025US$6.6tUS$588.2bUS$130.0b42.2x50.8x11.2x
Sat, 18 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.5x11.3x
Mon, 16 Dec 2024US$6.7tUS$569.1bUS$128.8b41.2x51.8x11.7x
Wed, 13 Nov 2024US$6.4tUS$567.1bUS$123.7b41.2x52.1x11.4x
Fri, 11 Oct 2024US$6.0tUS$551.6bUS$124.1b37.7x48.7x10.9x
Sun, 08 Sep 2024US$5.6tUS$551.3bUS$123.1b34.9x45.6x10.2x
Tue, 06 Aug 2024US$5.5tUS$541.8bUS$120.2b37x45.8x10.2x
Thu, 04 Jul 2024US$6.1tUS$530.5bUS$118.1b41.3x51.6x11.5x
Sat, 01 Jun 2024US$5.1tUS$475.9bUS$106.9b39.8x47.6x10.7x
Mon, 29 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Wed, 27 Mar 2024US$5.4tUS$465.8bUS$98.0b45.1x55.4x11.7x
Fri, 23 Feb 2024US$5.2tUS$466.1bUS$92.8b42.8x55.9x11.1x
Sun, 21 Jan 2024US$5.3tUS$486.2bUS$82.1b46.4x64.9x11x
Tue, 19 Dec 2023US$5.1tUS$486.1bUS$82.9b44.7x61.6x10.5x
Thu, 16 Nov 2023US$4.9tUS$482.1bUS$79.5b45.1x61.8x10.2x
Sat, 14 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Mon, 11 Sep 2023US$4.6tUS$476.3bUS$72.9b44.8x63.6x9.7x
Wed, 09 Aug 2023US$4.5tUS$473.3bUS$68.6b47.2x65x9.4x
Fri, 07 Jul 2023US$4.5tUS$460.7bUS$60.4b47.2x74.3x9.7x
Sun, 04 Jun 2023US$4.4tUS$459.8bUS$62.0b42.6x70.9x9.6x
Tue, 02 May 2023US$4.0tUS$457.2bUS$62.4b41.4x64x8.7x
Thu, 30 Mar 2023US$3.9tUS$453.6bUS$60.6b43x63.6x8.5x
Sat, 25 Feb 2023US$3.5tUS$438.0bUS$58.8b42.3x59.1x7.9x
Mon, 23 Jan 2023US$3.4tUS$434.5bUS$60.2b42.3x55.7x7.7x
Wed, 21 Dec 2022US$3.3tUS$434.3bUS$60.3b41.9x54.3x7.5x
Fri, 18 Nov 2022US$3.3tUS$424.9bUS$62.5b45.3x52.5x7.7x
Sun, 16 Oct 2022US$3.1tUS$412.8bUS$64.3b36.9x47.9x7.5x
Tue, 13 Sep 2022US$3.7tUS$413.1bUS$64.9b42.7x57.6x9x
Price to Earnings Ratio

57.6x


Total Market Cap: US$3.7tTotal Earnings: US$64.9bTotal Revenue: US$413.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.5x202320242025
Current Industry PE
  • Investors are pessimistic on the American 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 48.5x which is lower than its 3-year average PE of 55.5x.
  • The 3-year average PS ratio of 10.1x is lower than the industry's current PS ratio of 11.9x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 33% per year over the last three years.
  • Revenues for these companies have grown 14% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market0.43%
Tech0.12%
Software-1.20%
Application Software-0.68%
Systems Software-1.42%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 24.8%, which is higher than its past year's earnings growth of 20.0% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 38.8x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 20% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 15% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
ORCL OracleUS$232.802.9%
+US$18.7b		64.2%PE52.6x
APP AppLovinUS$490.242.4%
+US$3.9b		479.7%PE66x
GWRE Guidewire SoftwareUS$260.7120.1%
+US$3.7b		61.2%PE314.5x
IOT SamsaraUS$42.0916.5%
+US$3.4b		-4.4%PS16.8x
PANW Palo Alto NetworksUS$194.462.1%
+US$2.6b		15.8%PE114.7x

Latest News

CRM
US$250.76
Salesforce
7D
-2.1%
1Y
2.8%
FIG
US$54.86
Figma
7D
-21.9%
1Y
n/a
GWRE
US$260.71
Guidewire Software
7D
20.1%
1Y
61.2%
APP
US$490.24
AppLovin
7D
2.4%
1Y
479.7%
CRWD
US$417.63
CrowdStrike Holdings
7D
-1.4%
1Y
69.5%
CRCL
US$114.56
Circle Internet Group
7D
-13.2%
1Y
n/a
IOT
US$42.09
Samsara
7D
16.5%
1Y
-4.4%
PLTR
US$153.09
Palantir Technologies
7D
-2.3%
1Y
404.7%
INTU
US$672.82
Intuit
7D
0.9%
1Y
9.4%
MSFT
US$495.00
Microsoft
7D
-2.3%
1Y
23.2%
PANW
US$194.46
Palo Alto Networks
7D
2.1%
1Y
15.8%
ORCL
US$232.80
Oracle
7D
2.9%
1Y
64.2%

Multi-cloud Partnerships With AWS, Google, And Azure Will Accelerate Future Prospects

Analysts highlight Oracle's accelerating AI-driven growth, bolstered by major cloud contracts and robust application demand, though some caution over valuation as these positives appear priced in—leaving the consensus price target unchanged at $244.31. Analyst Commentary Bullish analysts point to Oracle's emergence as a structural winner in artificial intelligence, with unique OCI architecture driving a surge in AI-related demand and a pronounced inflection in growth.
TEAM
US$172.43
Atlassian
7D
-3.0%
1Y
6.9%

AI Adoption And Enterprise Cloud Migration Will Unlock Future Opportunity

With a stable Net Profit Margin of 4.19% and an unchanged Discount Rate of 7.99%, Atlassian’s consensus analyst price target remains steady at $259.82. What's in the News Atlassian completed repurchase of 5,543,516 shares (2.13%) for $1,000.3 million under its February 2023 buyback and 1,578,484 shares (0.6%) for $328.76 million under its October 2024 buyback.
ADBE
US$348.97
Adobe
7D
-2.2%
1Y
-38.1%
ADSK
US$326.25
Autodesk
7D
3.7%
1Y
30.3%

Investments In Cloud And AI Will Expand Future Customer Ecosystem

Driven by Autodesk’s stronger-than-expected Q2 results, upgraded guidance, long-term margin expansion targets, and improved revenue prospects—partially offset by macro and margin model concerns—the consensus analyst price target has increased from $342.07 to $356.55. Analyst Commentary Stronger-than-expected fiscal Q2 results and upgraded full-year (FY26) guidance, with revenue growth accelerating and beats across key operating metrics.
U
US$43.82
Unity Software
7D
11.2%
1Y
176.3%