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U.S. Software Industry Analysis

UpdatedJun 05, 2026
DataAggregated Company Financials
Companies442
  • 7D2.9%
  • 3M11.2%
  • 1Y-4.9%
  • YTD-4.7%

Over the last 7 days, the Software industry has risen 2.9%, driven by gains from Oracle of 16%. During this same period, the AppLovin underperformed, falling 6.8%. In the past year, the industry is down 4.9%. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 05 Jun 2026US$6.5tUS$692.4bUS$155.3b29.2x42.1x9.4x
Sun, 03 May 2026US$5.9tUS$681.1bUS$162.7b30.3x36.3x8.7x
Tue, 31 Mar 2026US$5.2tUS$668.4bUS$161.9b28.7x32x7.7x
Thu, 26 Feb 2026US$5.6tUS$661.3bUS$162.5b25.8x34.2x8.4x
Sat, 24 Jan 2026US$6.6tUS$649.0bUS$159.9b30.8x41.1x10.1x
Mon, 22 Dec 2025US$7.2tUS$645.4bUS$164.7b32.4x43.6x11.1x
Wed, 19 Nov 2025US$7.2tUS$639.3bUS$159.9b30x44.7x11.2x
Fri, 17 Oct 2025US$7.8tUS$621.4bUS$151.7b35x51.2x12.5x
Sun, 14 Sep 2025US$7.6tUS$620.7bUS$151.7b35.2x50.3x12.3x
Tue, 12 Aug 2025US$7.6tUS$614.0bUS$153.0b36.9x49.5x12.3x
Thu, 10 Jul 2025US$7.4tUS$598.9bUS$131.3b43.8x56.3x12.3x
Sat, 07 Jun 2025US$6.9tUS$595.8bUS$131.6b40.1x52.2x11.5x
Mon, 05 May 2025US$6.4tUS$589.0bUS$131.0b33.5x48.8x10.9x
Wed, 02 Apr 2025US$5.6tUS$581.4bUS$131.8b30.2x42.9x9.7x
Fri, 28 Feb 2025US$6.2tUS$580.5bUS$129.3b34.3x48.2x10.7x
Sun, 26 Jan 2025US$6.7tUS$568.2bUS$129.2b42.3x51.7x11.8x
Tue, 24 Dec 2024US$6.6tUS$569.2bUS$128.8b40.9x51.1x11.6x
Thu, 21 Nov 2024US$6.4tUS$566.7bUS$127.1b41x50.5x11.3x
Sat, 19 Oct 2024US$6.0tUS$551.7bUS$124.1b37.6x48.7x11x
Mon, 16 Sep 2024US$6.0tUS$552.4bUS$124.0b38.8x48.2x10.8x
Wed, 14 Aug 2024US$5.6tUS$548.7bUS$121.5b35.3x46x10.2x
Fri, 12 Jul 2024US$6.1tUS$530.5bUS$118.4b40.5x51.4x11.5x
Sun, 09 Jun 2024US$5.2tUS$477.7bUS$107.2b39.9x48.8x11x
Tue, 07 May 2024US$5.2tUS$476.8bUS$103.2b42.6x50.8x11x
Thu, 04 Apr 2024US$5.4tUS$466.0bUS$98.3b43.9x54.5x11.5x
Sat, 02 Mar 2024US$5.4tUS$468.6bUS$98.0b42.9x55.5x11.6x
Mon, 29 Jan 2024US$5.4tUS$486.8bUS$82.4b47.4x66.1x11.2x
Wed, 27 Dec 2023US$5.2tUS$486.1bUS$82.9b45x62.4x10.6x
Fri, 24 Nov 2023US$4.9tUS$482.5bUS$79.9b44.9x61.9x10.3x
Sun, 22 Oct 2023US$4.4tUS$477.3bUS$73.7b42x60.3x9.3x
Tue, 19 Sep 2023US$4.6tUS$480.1bUS$73.0b45.2x62.4x9.5x
Thu, 17 Aug 2023US$4.4tUS$473.1bUS$70.2b45x62.7x9.3x
Sat, 15 Jul 2023US$4.6tUS$460.7bUS$60.1b48.3x77x10x
Mon, 12 Jun 2023US$4.3tUS$460.1bUS$62.1b43.1x69.8x9.4x
Price to Earnings Ratio

69.8x


Total Market Cap: US$4.3tTotal Earnings: US$62.1bTotal Revenue: US$460.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 51.5x202420252026
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 42.1x which is lower than its 3-year average PE of 51.5x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 9.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 36% per year over the last three years.
  • Revenues for these companies have grown 15% 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 Market-0.11%
Tech2.80%
Software2.90%
Systems Software3.75%
Application Software0.82%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 45.8x.
    • Analysts are expecting annual earnings growth of 27.8%, which is higher than its past year's earnings growth of 10.2% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings growth rate of 10% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 17% 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$236.3416.0%
+US$93.9b		38.1%PE42x
PANW Palo Alto NetworksUS$279.258.3%
+US$18.5b		41.7%PE270x
FTNT FortinetUS$149.6715.4%
+US$14.6b		44.6%PE56.1x
CRWD CrowdStrike HoldingsUS$719.097.2%
+US$12.2b		55.3%PS35.9x
NOW ServiceNowUS$119.369.8%
+US$11.0b		-41.4%PE70.1x

Latest News

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Summary Cadence Design Systems is rated Buy with a 12-month price target of $470, driven by exponential semiconductor complexity and AI chip ecosystem demand. Q1 revenue grew 19% YoY to $1.47B, with a record $8B backlog and double-digit growth across all segments, indicating robust and compounding demand. CDNS’s entrenched EDA software, AI-driven workflows, and expanding SDA segment create a durable moat and long-term growth visibility beyond semiconductors. Risks include 13% China revenue exposure and Hexagon integration, but strong operating margins, buybacks, and diversified growth offset these concerns. Read the full article on Seeking Alpha
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Salesforce, Inc. ( NYSE:CRM ) recently posted some strong earnings, and the market responded positively. We have done...
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PANW: AI Security Platform And Acquisition Synergies Will Shape Future Repricing Potential

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NOW
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ORCL
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7D
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1Y
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Seeking Alpha • Jun 02

Oracle: Profit From Others' Speculation, Stick To Intrinsic Value (Downgrade)

Summary Oracle Corporation stock has surged over 75% since February, but I now rate it a Hold due to overvaluation. ORCL trades at peak multiples, with a forward P/E 23% above sector and price-to-sales 180% higher. The investment thesis pivots on a $553B AI-driven backlog and 84% Oracle Cloud Infrastructure growth, but execution risk is high. I've set a 15% trailing stop to protect ORCL gains, as heavy capex and negative free cash flow pressure the balance sheet. Read the full article on Seeking Alpha
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APP
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7D
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1Y
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Narrative Update • May 30

APP: Ongoing Buybacks And Officer Exculpation Will Support Future Upside

Analysts have slightly reduced their fair value estimate for AppLovin from about $860 to roughly $852 per share, citing updated assumptions for revenue growth, profit margins, discount rate, and future P/E that modestly reset the stock's risk and reward profile. What's in the News From January 1, 2026 to March 31, 2026, AppLovin repurchased 2,170,000 shares, or 0.64% of its stock, for US$1,004.46m under its existing buyback program, bringing total repurchases under the plan announced on February 28, 2022 to 79,469,556 shares, or 22.26%, for US$5,595.52m (Key Developments).
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1Y
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