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U.S. Software Industry Analysis

UpdatedAug 27, 2025
DataAggregated Company Financials
Companies406
  • 7D-0.2%
  • 3M7.5%
  • 1Y25.4%
  • YTD13.8%

The Software is pretty flat in the last 7 days, but AppLovin has stood out, gaining 14%. As for the the longer term, the industry is up 25% over the past 12 months. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 27 Aug 2025US$7.3tUS$615.8bUS$150.8b35x48.6x11.9x
Fri, 25 Jul 2025US$7.5tUS$597.2bUS$130.9b42.7x57.1x12.5x
Sun, 22 Jun 2025US$7.1tUS$599.0bUS$131.1b40.7x53.9x11.8x
Tue, 20 May 2025US$6.7tUS$591.1bUS$131.4b36.1x51.3x11.4x
Thu, 17 Apr 2025US$5.7tUS$580.5bUS$131.7b29.9x43.3x9.8x
Sat, 15 Mar 2025US$5.7tUS$582.9bUS$131.3b28.7x43.3x9.7x
Mon, 10 Feb 2025US$6.5tUS$586.2bUS$132.4b43.2x49x11.1x
Wed, 08 Jan 2025US$6.5tUS$569.1bUS$129.0b38.4x50.2x11.4x
Fri, 06 Dec 2024US$6.8tUS$566.4bUS$127.7b42.8x53.2x12x
Sun, 03 Nov 2024US$6.0tUS$561.9bUS$126.3b39x47.5x10.7x
Tue, 01 Oct 2024US$6.0tUS$552.4bUS$124.0b38.7x48.8x10.9x
Thu, 29 Aug 2024US$5.8tUS$550.3bUS$121.8b36.8x47.6x10.5x
Sat, 27 Jul 2024US$5.7tUS$532.0bUS$117.8b40.7x48.2x10.7x
Mon, 24 Jun 2024US$5.9tUS$531.3bUS$118.0b40.6x50.1x11.1x
Wed, 22 May 2024US$5.4tUS$474.6bUS$105.4b43x51.3x11.4x
Fri, 19 Apr 2024US$5.1tUS$466.6bUS$98.4b42x51.9x10.9x
Sun, 17 Mar 2024US$5.3tUS$471.0bUS$98.1b45.8x54.4x11.3x
Tue, 13 Feb 2024US$5.4tUS$464.2bUS$90.0b41.8x60.3x11.7x
Thu, 11 Jan 2024US$5.1tUS$486.2bUS$82.2b45.5x62.4x10.5x
Sat, 09 Dec 2023US$5.0tUS$485.6bUS$82.5b47.1x60.8x10.3x
Mon, 06 Nov 2023US$4.7tUS$481.2bUS$79.0b43.3x58.9x9.7x
Wed, 04 Oct 2023US$4.4tUS$477.3bUS$73.4b44.2x60.6x9.3x
Fri, 01 Sep 2023US$4.6tUS$475.5bUS$72.4b44.9x63.3x9.6x
Sun, 30 Jul 2023US$4.6tUS$466.2bUS$64.9b47.7x70.3x9.8x
Tue, 27 Jun 2023US$4.4tUS$460.6bUS$62.3b43.8x69.9x9.4x
Thu, 25 May 2023US$4.1tUS$458.2bUS$61.4b40.5x67x9x
Sat, 22 Apr 2023US$3.9tUS$453.7bUS$60.6b42.4x64.4x8.6x
Mon, 20 Mar 2023US$3.8tUS$453.6bUS$59.7b42.2x63.5x8.4x
Wed, 15 Feb 2023US$3.7tUS$437.2bUS$58.1b42.1x64.2x8.5x
Fri, 13 Jan 2023US$3.3tUS$434.5bUS$60.2b39.9x54.9x7.6x
Sun, 11 Dec 2022US$3.3tUS$433.7bUS$60.9b43.9x54.6x7.7x
Tue, 08 Nov 2022US$3.0tUS$421.6bUS$62.7b40.4x47.8x7.1x
Thu, 06 Oct 2022US$3.4tUS$412.2bUS$64.7b39.9x52.7x8.3x
Sat, 03 Sep 2022US$3.5tUS$412.7bUS$65.0b43.9x54.3x8.6x
Price to Earnings Ratio

54.3x


Total Market Cap: US$3.5tTotal Earnings: US$65.0bTotal Revenue: US$412.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.6x202320242025
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 48.6x which is lower than its 3-year average PE of 55.6x.
  • 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 32% 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 Market1.32%
Tech1.07%
Software-0.24%
Application Software0.69%
Systems Software-0.65%
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 24.6%, which is higher than its past year's earnings growth of 20.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 38.7x.
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
APP AppLovinUS$469.3313.7%
+US$19.2b		419.7%PE63.2x
PLTR Palantir TechnologiesUS$160.873.1%
+US$11.5b		429.9%PE500x
MSTR StrategyUS$351.364.4%
+US$4.2b		151.0%PE21x
PANW Palo Alto NetworksUS$184.231.5%
+US$1.8b		5.2%PE108.5x
ZM Zoom CommunicationsUS$78.819.2%
+US$1.7b		9.6%PE19.9x

Latest News

WDAY
US$222.88
Workday
7D
-3.0%
1Y
-15.8%

AI Expansion And Efficiency Measures Will Strengthen Future Performance

Workday’s consensus price target has been revised downward to $280.19 as analysts cite tepid organic growth, mixed quarter indicators, increasing competition, and persistent sector headwinds, despite continued profitability improvements. Analyst Commentary Q2 results generally exceeded expectations on revenue and margin, but organic growth guidance was maintained, with revenue outlook lifts mainly attributed to the Paradox acquisition rather than core business acceleration.
INTU
US$659.54
Intuit
7D
-5.9%
1Y
5.3%

AI-Powered QuickBooks And TurboTax Will Boost Efficiency And Customer Satisfaction

Intuit’s analyst price target was revised modestly lower to $820.44 as conservative FY26 guidance and moderating growth expectations—particularly in Global Business Solutions and Mailchimp—outweighed confidence in core segment strength and tax software momentum. Analyst Commentary Bullish analysts recognize Intuit’s solid FY25 revenue acceleration, mid-market momentum, and upside in core business segments, but note FY26 guidance was conservative and below Street expectations.
U
US$40.07
Unity Software
7D
7.6%
1Y
132.2%
MSFT
US$502.04
Microsoft
7D
-0.7%
1Y
22.3%
IREN
US$22.99
IREN
7D
22.7%
1Y
192.5%

IREN will transform from bitcoin miner to leader in AI infrastructure

Purchase of 4.2k NVIDIA Blackwell B200 GPUs Initial commitment made from cash, financing conversations underway Deploying at Prince George data center Expands AI Cloud to approximately 8.5k GPUs $102m in financing secured for prior GPU purchases 36-month lease 100% of the purchase price Lease payments calculated utilizing high single digit interest rate
NOW
US$864.66
ServiceNow
7D
-2.5%
1Y
4.0%
ZM
US$78.81
Zoom Communications
7D
9.2%
1Y
9.6%
PLTR
US$160.87
Palantir Technologies
7D
3.1%
1Y
429.9%
ROP
US$524.45
Roper Technologies
7D
-3.0%
1Y
-4.7%
SNPS
US$596.00
Synopsys
7D
-2.7%
1Y
14.2%
ADBE
US$354.91
Adobe
7D
-1.7%
1Y
-37.5%
CRM
US$243.74
Salesforce
7D
-0.9%
1Y
-7.7%
PANW
US$184.23
Palo Alto Networks
7D
1.5%
1Y
5.2%
MSTR
US$351.36
Strategy
7D
4.4%
1Y
151.0%

Strategy's (NASDAQ:MSTR) Profits Appear To Have Quality Issues

Aug 18
Strategy's (NASDAQ:MSTR) Profits Appear To Have Quality Issues
APP
US$469.33
AppLovin
7D
13.7%
1Y
419.7%
FICO
US$1,420.13
Fair Isaac
7D
2.5%
1Y
-17.2%

Fair Isaac Corporation's (NYSE:FICO) Share Price Is Still Matching Investor Opinion Despite 25% Slump

Aug 02
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