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U.S. Software Industry Analysis

UpdatedDec 28, 2025
DataAggregated Company Financials
Companies430
  • 7D0.3%
  • 3M-8.3%
  • 1Y9.6%
  • YTD11.6%

Last week, the Software industry hasn't moved much but Oracle is up 3.1% in that time. As for the the longer term, the industry is up 9.6% over the past 12 months. 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
Sun, 28 Dec 2025US$7.2tUS$645.4bUS$164.7b31.7x43.7x11.2x
Tue, 25 Nov 2025US$6.8tUS$640.4bUS$160.5b30.4x42.6x10.7x
Thu, 23 Oct 2025US$7.8tUS$621.4bUS$151.8b34.3x51.3x12.5x
Sat, 20 Sep 2025US$7.8tUS$620.8bUS$151.7b35.3x51.2x12.5x
Mon, 18 Aug 2025US$7.5tUS$614.4bUS$150.3b35.7x50.2x12.3x
Wed, 16 Jul 2025US$7.4tUS$598.9bUS$131.4b43.1x56.1x12.3x
Fri, 13 Jun 2025US$7.0tUS$598.6bUS$130.5b41.3x53.4x11.6x
Sun, 11 May 2025US$6.4tUS$590.8bUS$130.8b33.7x49.2x10.9x
Tue, 08 Apr 2025US$5.3tUS$581.3bUS$131.8b28.7x39.9x9x
Thu, 06 Mar 2025US$6.0tUS$582.0bUS$129.5b34.9x46.5x10.4x
Sat, 01 Feb 2025US$6.5tUS$585.7bUS$132.3b41.2x48.8x11x
Mon, 30 Dec 2024US$6.5tUS$569.1bUS$128.8b40.7x50.5x11.4x
Wed, 27 Nov 2024US$6.5tUS$566.0bUS$127.5b42.3x51.1x11.5x
Fri, 25 Oct 2024US$6.1tUS$552.5bUS$124.3b37.2x48.8x11x
Sun, 22 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Tue, 20 Aug 2024US$5.8tUS$548.8bUS$121.5b36.3x47.7x10.6x
Thu, 18 Jul 2024US$6.0tUS$530.6bUS$118.4b41.5x50.9x11.4x
Sat, 15 Jun 2024US$5.8tUS$530.8bUS$117.8b39.8x48.9x10.9x
Mon, 13 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Wed, 10 Apr 2024US$5.4tUS$466.0bUS$98.4b43.4x54.9x11.6x
Fri, 08 Mar 2024US$5.4tUS$470.0bUS$98.4b44.7x54.4x11.4x
Sun, 04 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Tue, 02 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Thu, 30 Nov 2023US$5.0tUS$483.6bUS$80.7b45.4x62.5x10.4x
Sat, 28 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Mon, 25 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Wed, 23 Aug 2023US$4.4tUS$473.8bUS$70.7b43.8x62.6x9.3x
Fri, 21 Jul 2023US$4.6tUS$460.7bUS$60.1b48.5x77.2x10.1x
Sun, 18 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Tue, 16 May 2023US$4.0tUS$456.9bUS$61.1b39.9x65.8x8.8x
Thu, 13 Apr 2023US$3.9tUS$453.6bUS$60.5b43.7x63.9x8.5x
Sat, 11 Mar 2023US$3.5tUS$453.6bUS$60.0b42.3x58.2x7.7x
Mon, 06 Feb 2023US$3.6tUS$436.5bUS$57.8b42.3x62.6x8.3x
Wed, 04 Jan 2023US$3.3tUS$434.4bUS$60.2b41.7x54.1x7.5x
Price to Earnings Ratio

54.1x


Total Market Cap: US$3.3tTotal 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 43.7x 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 Market1.25%
Tech1.60%
Software0.30%
Systems Software0.64%
Application Software-0.41%
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 25.3%, 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 25% 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$197.993.1%
+US$17.3b		17.2%PE36.9x
MSFT MicrosoftUS$487.710.4%
+US$13.3b		13.3%PE34.6x
CRM SalesforceUS$266.082.4%
+US$5.8b		-21.4%PE34.5x
SNPS SynopsysUS$477.142.9%
+US$2.8b		-2.8%PE68.3x
INTU IntuitUS$676.550.8%
+US$1.5b		5.9%PE45.7x

Latest News

CRCL
US$81.27
Circle Internet Group
7D
-5.6%
1Y
n/a
NOW
US$153.89
ServiceNow
7D
-0.9%
1Y
-28.9%
INTU
US$676.55
Intuit
7D
0.8%
1Y
5.9%

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.
ORCL
US$197.99
Oracle
7D
3.1%
1Y
17.2%
SNPS
US$477.14
Synopsys
7D
2.9%
1Y
-2.8%
ADBE
US$353.80
Adobe
7D
-0.6%
1Y
-20.8%

ADBE: Rising AI Costs Will Pressure Margins And Drive Multiple Compression

Analysts have reduced their fair value estimate for Adobe from $380.00 to about $271.93 per share, citing expectations for slightly slower revenue growth, lower long term profit margins, and a more conservative valuation multiple. Analyst Commentary Bearish analysts have become more vocal on Adobe, pointing to a combination of moderating growth expectations and tighter competitive dynamics across creative, document, and marketing workflows.
CRM
US$266.08
Salesforce
7D
2.4%
1Y
-21.4%

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.
IOT
US$36.48
Samsara
7D
-4.5%
1Y
-17.9%

IOT: Future Returns Will Reflect Expanding Connected Operations Platform Adoption

Analysts have nudged their price target for Samsara higher to approximately $50.36 from about $49.72, citing slightly lower perceived risk and more favorable long term valuation assumptions, despite moderating growth and margin expectations. What's in the News Samsara issued fourth quarter and full fiscal year 2026 guidance, targeting revenue of $421 million to $423 million for Q4 (22 percent year over year growth) and $1.595 billion to $1.597 billion for the year (28 percent year over year growth) (company guidance).
FTNT
US$81.56
Fortinet
7D
1.6%
1Y
-15.1%

FTNT: AI Data Center Push And Legal Overhang Will Shape Shares

Analysts have slightly lowered their price target on Fortinet, trimming fair value by about $0.40 to roughly $87.04. They cited a more cautious stance following recent downgrades and tempered growth expectations, despite solid Q3 metrics and improved guidance.
APP
US$714.23
AppLovin
7D
-1.0%
1Y
113.1%

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$188.71
Palantir Technologies
7D
-2.4%
1Y
138.6%
MSFT
US$487.71
Microsoft
7D
0.4%
1Y
13.3%

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.
BMNR
US$28.31
Bitmine Immersion Technologies
7D
-9.7%
1Y
249.5%
CDNS
US$318.89
Cadence Design Systems
7D
1.3%
1Y
4.5%

CDNS: AI And HPC Design Demand Will Drive Shares Higher

Analysts have nudged their price target on Cadence Design Systems higher by $2 to approximately $384 per share, citing sustained strength in advanced chip design activity for artificial intelligence and high performance computing, as well as solid near term growth guidance. Analyst Commentary JPMorgan lifted its price target on Cadence Design Systems to $405 from $390 and reiterated an Overweight rating following a strong Q3 print and guidance for another quarter of solid growth.
PANW
US$188.45
Palo Alto Networks
7D
0.8%
1Y
1.2%

PANW: AI Platform And M&A Expansion Will Drive Long-Term Share Gains

The analyst price target for Palo Alto Networks has edged higher by $0 to approximately $225 per share, as analysts balance concerns over decelerating growth and acquisition costs with confidence in the company’s expanding AI driven security platform, strategic M&A, and growing next generation security revenue opportunity. Analyst Commentary Street research on Palo Alto Networks remains divided, with most firms constructive on the company’s long term AI and platform strategy while a minority flag the risk that revenue growth deceleration and rich valuation could cap upside.
MSTR
US$158.81
Strategy
7D
-3.6%
1Y
-51.9%