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U.S. Software Industry Analysis

UpdatedDec 31, 2025
DataAggregated Company Financials
Companies432
  • 7D-0.8%
  • 3M-9.0%
  • 1Y11.3%
  • YTD10.8%

Over the last 7 days, the Software industry has remained flat, although notably Palantir Technologies declined by 6.9%. The past year has been better, since the industry has gained 11% in that time. 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
Wed, 31 Dec 2025US$7.1tUS$645.4bUS$164.8b31.7x43.4x11.1x
Fri, 28 Nov 2025US$7.0tUS$640.4bUS$161.2b30.8x43.5x11x
Sun, 26 Oct 2025US$7.9tUS$621.4bUS$151.9b33.3x51.9x12.7x
Tue, 23 Sep 2025US$7.9tUS$620.8bUS$151.7b36.6x52.2x12.8x
Thu, 21 Aug 2025US$7.4tUS$614.8bUS$150.1b36.7x49x12x
Sat, 19 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.4x12.6x
Mon, 16 Jun 2025US$7.0tUS$598.9bUS$130.9b41.1x53.7x11.7x
Wed, 14 May 2025US$6.6tUS$590.8bUS$130.9b33.1x50.6x11.2x
Fri, 11 Apr 2025US$5.8tUS$581.3bUS$131.9b29.1x43.7x9.9x
Sun, 09 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.1x10.3x
Tue, 04 Feb 2025US$6.5tUS$585.9bUS$132.3b40.9x48.9x11x
Thu, 02 Jan 2025US$6.4tUS$569.1bUS$128.9b40.1x49.4x11.2x
Sat, 30 Nov 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Mon, 28 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49.3x11.1x
Wed, 25 Sep 2024US$6.1tUS$552.4bUS$124.0b38.3x48.9x11x
Fri, 23 Aug 2024US$5.9tUS$549.4bUS$121.8b36.3x48.4x10.7x
Sun, 21 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Tue, 18 Jun 2024US$5.8tUS$531.3bUS$118.1b39.7x49.2x10.9x
Thu, 16 May 2024US$5.3tUS$474.0bUS$104.6b44.8x50.3x11.1x
Sat, 13 Apr 2024US$5.4tUS$466.3bUS$98.4b41.9x55x11.6x
Mon, 11 Mar 2024US$5.3tUS$470.2bUS$98.5b46.9x54.2x11.3x
Wed, 07 Feb 2024US$5.3tUS$462.8bUS$89.5b46.2x58.9x11.4x
Fri, 05 Jan 2024US$5.0tUS$486.2bUS$82.8b45.7x60.3x10.3x
Sun, 03 Dec 2023US$5.1tUS$485.3bUS$81.9b46.1x62.1x10.5x
Tue, 31 Oct 2023US$4.5tUS$484.8bUS$79.0b41.8x56.8x9.3x
Thu, 28 Sep 2023US$4.3tUS$477.4bUS$73.2b44.6x59.4x9.1x
Sat, 26 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Mon, 24 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Wed, 21 Jun 2023US$4.5tUS$460.5bUS$62.3b44.2x71.9x9.7x
Fri, 19 May 2023US$4.2tUS$457.1bUS$61.1b39.9x68.1x9.1x
Sun, 16 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Tue, 14 Mar 2023US$3.5tUS$453.6bUS$60.0b42x59x7.8x
Thu, 09 Feb 2023US$3.7tUS$436.7bUS$57.8b44x63.6x8.4x
Sat, 07 Jan 2023US$3.1tUS$434.4bUS$60.2b39.9x52x7.2x
Price to Earnings Ratio

52x


Total Market Cap: US$3.1tTotal Earnings: US$60.2bTotal Revenue: US$434.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55x20242025
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 43.4x which is lower than its 3-year average PE of 55.0x.
  • The industry is trading close to its 3-year average PS ratio of 10.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% 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 Market-0.48%
Tech-0.61%
Software-0.80%
Systems Software-0.036%
Application Software-2.37%
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 24.4%, which is lower than the prior year's growth of 41.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 40.1x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 41% 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$197.211.0%
+US$5.4b		18.3%PE36.7x
CRM SalesforceUS$265.920.9%
+US$2.3b		-20.5%PE34.5x
ZETA Zeta Global HoldingsUS$20.8013.4%
+US$602.6m		15.6%PS4.2x
TEAM AtlassianUS$162.931.1%
+US$476.2m		-33.1%PS7.9x
FICO Fair IsaacUS$1.75k1.2%
+US$473.5m		-12.3%PE63.5x

Latest News

ORCL
US$197.21
Oracle
7D
1.0%
1Y
18.3%
QBTS
US$26.25
D-Wave Quantum
7D
-9.9%
1Y
212.5%
ADSK
US$299.54
Autodesk
7D
0.4%
1Y
1.3%

ADSK: AI Execution Will Drive Margins And Support Multi Year Upside

Our fair value estimate for Autodesk has inched up by about $1 to approximately $366 per share, as analysts point to steady low teens revenue growth, improving margins, and increased confidence in execution, AI strategy, and multi year growth durability, which is reflected in a series of upward price target revisions across the Street. Analyst Commentary Street research remains broadly constructive on Autodesk, with several firms lifting price targets and, in at least one case, upgrading the stock, as confidence improves in the company’s growth trajectory, margin profile, and execution consistency.
INTU
US$669.88
Intuit
7D
-0.7%
1Y
6.6%

INTU: OpenAI Partnership Will Drive AI Agents And Credit Upside

Narrative Update on Intuit Analysts have made a modest adjustment to their price target for Intuit, trimming fair value by about $1 to roughly $804 per share as they factor in slightly lower long term growth assumptions, offset by improving margin expectations and increasing confidence in the OpenAI partnership and Credit Karma upside. Analyst Commentary Bullish analysts see the recent OpenAI partnership and improving Credit Karma backdrop as key supports for Intuit's premium valuation, even after modestly lower long term growth assumptions.
PATH
US$16.67
UiPath
7D
4.4%
1Y
31.2%

UiPath Inc.'s (NYSE:PATH) 28% Price Boost Is Out Of Tune With Revenues

Dec 23
UiPath Inc.'s (NYSE:PATH) 28% Price Boost Is Out Of Tune With Revenues
IREN
US$38.30
IREN
7D
-8.8%
1Y
290.0%

IREN: AI Cloud Contracts With Major Hyperscaler Will Drive Re-Rating

Analysts have lifted their fair value estimate for IREN sharply from $40 to $136 per share, as they factor in a much larger, higher visibility AI cloud opportunity supported by new hyperscaler partnerships, improved power monetization and a sector wide re-rating of high performance computing infrastructure providers. They have also modestly reduced the discount rate and assumed faster revenue growth but lower long term profit margins and a higher future P/E multiple.
FICO
US$1,745.75
Fair Isaac
7D
1.2%
1Y
-12.3%
CRM
US$265.92
Salesforce
7D
0.9%
1Y
-20.5%

CRM: Expanding AI Customer Engagement Will Drive Durable Long Term Shareholder Value

Analysts have inched up their Salesforce price target, with fair value rising roughly $3 to about $330 per share, as modestly stronger long term revenue growth assumptions and a slightly lower discount rate more than offset a marginally softer profit margin outlook amid shifting competitive dynamics in customer engagement and AI driven marketing tools. Analyst Commentary Analyst sentiment on Salesforce remains mixed as the competitive backdrop in customer engagement and AI driven marketing tools evolves rapidly, leading to both upward and downward adjustments to growth and execution assumptions embedded in valuation models.
APP
US$693.71
AppLovin
7D
-4.6%
1Y
114.2%

Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%

Dec 19
Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%
PLTR
US$180.84
Palantir Technologies
7D
-6.9%
1Y
139.1%
MSFT
US$487.48
Microsoft
7D
-0.1%
1Y
15.7%

MSFT: Expanded AI Partnerships And Infrastructure Will Drive Durable Cloud Leadership

Analysts have nudged their Microsoft price target slightly higher to approximately $650, reflecting confidence that the company's broadened AI partnerships, resilient Azure growth, and durable margin profile justify modestly stronger long term revenue and earnings assumptions despite rising capex and hyperscaler caution. Analyst Commentary Street research remains broadly constructive on Microsoft, with a cluster of recent notes highlighting the company as a primary beneficiary of accelerating AI adoption, robust cloud demand, and deepened model partnerships, even as a minority of voices urge greater caution around hyperscaler capital intensity and returns.
HUBS
US$405.83
HubSpot
7D
2.2%
1Y
-41.8%

HUBS: AI-Driven Multi-Hub Adoption Will Support Long-Term Upside Despite Sector Headwinds

Analysts have modestly reduced their fair value estimate for HubSpot to approximately $580 from about $585 per share, reflecting a wave of lowered price targets as they balance still-strong double digit growth and AI driven opportunities against softer reacceleration expectations, competitive AI headwinds, and broader software multiple compression. Analyst Commentary Street research reflects a constructive but more measured stance on HubSpot, with many firms trimming price targets while reiterating positive long term views on growth, profitability, and AI optionality.
TEAM
US$162.93
Atlassian
7D
1.1%
1Y
-33.1%

TEAM: Cloud Transition Progress And AWS Partnership Will Drive Long-Term Upside

Analysts have reduced their price target on Atlassian from $196.00 to $178.00, citing slightly higher perceived risk, a moderation in expected revenue growth, and a modestly lower long term profit margin outlook. Analyst Commentary Bearish analysts have framed the reduced price target as a recalibration of expectations rather than a shift in the long term thesis.
NBIS
US$85.17
Nebius Group
7D
-6.5%
1Y
207.5%
ZETA
US$20.80
Zeta Global Holdings
7D
13.4%
1Y
15.6%

ZETA: Marigold Acquisition Will Drive Sustained 20% Organic Expansion

Analysts nudged their average price target for Zeta Global Holdings modestly higher to approximately $30, citing the accretive Marigold acquisition, reinforced expectations for 20% plus organic revenue growth and margin expansion through 2026 and beyond, and increased confidence that the company can outperform its long term growth and free cash flow objectives. Analyst Commentary Analyst commentary on Zeta Global remains overwhelmingly positive, with recent research updates highlighting both the strategic impact of the Marigold acquisition and the company’s ability to deliver sustained, high growth at attractive margins.
MSTR
US$155.61
Strategy
7D
-2.0%
1Y
-46.3%