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U.S. Software Industry Analysis

UpdatedSep 11, 2026
DataAggregated Company Financials
Companies429
  • 7D-4.3%
  • 3M17.9%
  • 1Y-9.5%
  • YTD1.7%

Over the last 7 days, the Software industry has dropped 4.3%, driven by Microsoft declining 3.5%. The industry has fallen 9.5% in the last year. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 11 Sep 2026US$6.8tUS$720.8bUS$141.3b29.7x48.5x9.5x
Sun, 09 Aug 2026US$6.9tUS$711.4bUS$142.7b32.5x48x9.6x
Tue, 07 Jul 2026US$5.9tUS$699.4bUS$156.4b28.5x37.8x8.4x
Thu, 04 Jun 2026US$6.7tUS$691.4bUS$155.7b29x42.9x9.7x
Sat, 02 May 2026US$5.8tUS$681.1bUS$162.7b30.3x35.6x8.5x
Mon, 30 Mar 2026US$5.2tUS$668.4bUS$161.9b28.2x32x7.7x
Wed, 25 Feb 2026US$5.4tUS$661.1bUS$162.9b24.2x33x8.1x
Fri, 23 Jan 2026US$6.5tUS$649.0bUS$159.9b30.5x40.8x10x
Sun, 21 Dec 2025US$7.2tUS$645.4bUS$164.7b32.4x43.6x11.1x
Tue, 18 Nov 2025US$7.4tUS$641.1bUS$159.9b30.8x46x11.5x
Thu, 16 Oct 2025US$7.8tUS$621.4bUS$151.7b34.9x51.2x12.5x
Sat, 13 Sep 2025US$7.7tUS$620.9bUS$151.9b34.9x50.6x12.4x
Mon, 11 Aug 2025US$7.6tUS$614.0bUS$150.0b37.7x50.5x12.3x
Wed, 09 Jul 2025US$7.4tUS$598.9bUS$131.3b43.8x56.2x12.3x
Fri, 06 Jun 2025US$6.8tUS$595.6bUS$131.6b39.5x52x11.5x
Sun, 04 May 2025US$6.4tUS$589.0bUS$131.0b33.5x48.9x10.9x
Tue, 01 Apr 2025US$5.7tUS$582.3bUS$130.7b29.3x43.7x9.8x
Thu, 27 Feb 2025US$6.2tUS$581.2bUS$128.6b35.2x48.1x10.6x
Sat, 25 Jan 2025US$6.7tUS$568.2bUS$129.2b42.3x52.1x11.8x
Mon, 23 Dec 2024US$6.6tUS$569.1bUS$128.8b40.8x51.1x11.6x
Wed, 20 Nov 2024US$6.3tUS$566.7bUS$127.1b41x50x11.2x
Fri, 18 Oct 2024US$6.0tUS$551.7bUS$124.1b39.5x48.7x10.9x
Sun, 15 Sep 2024US$6.0tUS$552.4bUS$124.0b38.8x48.2x10.8x
Tue, 13 Aug 2024US$5.6tUS$548.6bUS$121.5b34.3x46.1x10.2x
Thu, 11 Jul 2024US$6.0tUS$530.5bUS$118.1b40.3x51.1x11.4x
Sat, 08 Jun 2024US$5.2tUS$477.7bUS$107.3b39.9x48.9x11x
Mon, 06 May 2024US$5.2tUS$476.8bUS$103.2b42.3x50.1x10.8x
Wed, 03 Apr 2024US$5.4tUS$466.0bUS$98.3b44x55.1x11.6x
Fri, 01 Mar 2024US$5.4tUS$472.1bUS$98.1b43.9x54.6x11.3x
Sun, 28 Jan 2024US$5.4tUS$486.8bUS$82.4b47.4x66.1x11.2x
Tue, 26 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Thu, 23 Nov 2023US$5.0tUS$482.4bUS$79.9b44.9x62.4x10.3x
Sat, 21 Oct 2023US$4.4tUS$477.3bUS$73.7b42x60.3x9.3x
Mon, 18 Sep 2023US$4.6tUS$480.1bUS$73.0b45.2x62.5x9.5x
Price to Earnings Ratio

62.5x


Total Market Cap: US$4.6tTotal Earnings: US$73.0bTotal Revenue: US$480.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 49x202420252026
Current Industry PE
  • Investors are relatively neutral on the American Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 49.0x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 9.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 25% 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-2.20%
Tech-1.40%
Software-4.26%
Systems Software-2.91%
Application Software-7.89%
Industry PE
  • Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 38.1x.
    • Analysts are expecting annual earnings growth of 18.4%, which is lower than the prior year's growth of 21.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% over the next 5 years.
  • However this is lower than its past earnings growth rate of 40% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 18% 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
PANW Palo Alto NetworksUS$338.492.0%
+US$5.3b		70.7%PE898.6x
NBIS Nebius GroupUS$228.118.3%
+US$4.8b		155.8%PE1474.6x
DDOG DatadogUS$221.723.2%
+US$2.5b		59.3%PE448.3x
FTNT FortinetUS$158.851.6%
+US$1.8b		96.4%PE55x
NTSK NetskopeUS$15.105.3%
+US$310.5m		n/aPS7.7x

Latest News

PANW
US$338.49
Palo Alto Networks
7D
2.0%
1Y
70.7%
ADBE
US$248.83
Adobe
7D
-12.9%
1Y
-29.0%
CRM
US$243.00
Salesforce
7D
-8.1%
1Y
-1.3%
MSFT
US$492.44
Microsoft
7D
-3.5%
1Y
-1.7%
PLTR
US$165.86
Palantir Technologies
7D
-9.1%
1Y
0.9%
CRWD
US$208.86
CrowdStrike Holdings
7D
-2.8%
1Y
92.8%
IDCC
US$346.44
InterDigital
7D
3.1%
1Y
6.6%
NOW
US$131.17
ServiceNow
7D
-9.9%
1Y
-30.1%
Seeking Alpha • Sep 09

ServiceNow: A Gem Beating The SaaSpocalypse Narrative

Summary ServiceNow remains a Strong Buy, driven by robust AI integration, a resilient business model, and reaffirmed 2030 targets. NOW expects AI to grow from 9.5% to 30% of revenue by 2030, supporting management’s $30–32B subscription revenue target. Gross margins are projected to stay above 80% as AI adoption scales, with operating and FCF margin expansion anticipated in 2027. Despite premium valuation, NOW’s superior revenue and EBITDA growth, expanding ecosystem, and durable pricing power justify its multiple. Read the full article on Seeking Alpha
MSTR
US$128.56
Strategy
7D
-11.2%
1Y
-60.6%
New Narrative • Sep 09

Bitcoin-Centric Credit Expansion Will Shape Volatile Yet Enduring Long-Term Outcomes

Catalysts About Strategy Strategy focuses on using Bitcoin as core treasury capital and issuing digital credit instruments such as Stretch to build a large, leveraged digital asset platform. What are the underlying business or industry changes driving this perspective?
FTNT
US$158.85
Fortinet
7D
1.6%
1Y
96.4%
Seeking Alpha • Sep 09

Fortinet's Next Test Is Sustained Growth

Summary Fortinet remains a Buy, driven by robust billings growth, accelerating product sales, and strong margin performance across its hybrid security model. FTNT's deferred revenue reached $7.68B, with management guiding for 25% billings growth and 19% revenue growth, underpinned by recurring service contracts. Operating leverage is evident: non-GAAP operating margin hit 38%, adjusted free cash flow margin reached 49%, and free cash flow more than tripled year-over-year. Valuation is demanding but justified by industry-leading margins, resilient service revenue, and a cash-heavy balance sheet supporting continued buybacks and growth. Read the full article on Seeking Alpha
NBIS
US$228.11
Nebius Group
7D
8.3%
1Y
155.8%
DDOG
US$221.72
Datadog
7D
3.2%
1Y
59.3%
INTU
US$312.77
Intuit
7D
-9.2%
1Y
-52.6%
HUT
US$90.60
Hut 8
7D
2.8%
1Y
183.5%
Narrative Update • Sep 03

HUT: Beacon Point Leases And AI Pipeline Will Drive Future Returns

Analysts have nudged their fair value estimate for Hut 8 higher to about $162 from roughly $157, citing the stock's expanding AI data center lease pipeline, recent price target increases across several firms, and ongoing interest in its role as a high performance computing landlord as key supports for the new target range. Analyst Commentary Recent research on Hut 8 highlights a mix of enthusiasm for the AI data center opportunity and caution around execution risk and market swings.
NTSK
US$15.10
Netskope
7D
5.3%
1Y
n/a
Narrative Update • Sep 03

NTSK: Rising Security Demand And AI Data Protection Should Support Further Upside

The updated analyst price target for Netskope moves to about $17.64 from roughly $16.61. This reflects analyst views that recent sector checks, partner channel feedback, and security demand trends support slightly stronger revenue growth, margins, and future P/E assumptions than previously modeled.
IOND
US$79.88
Ionic Digital
7D
5.9%
1Y
n/a