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U.S. Software Industry Analysis

UpdatedApr 04, 2026
DataAggregated Company Financials
Companies428
  • 7D4.5%
  • 3M-21.6%
  • 1Y1.6%
  • YTD-21.6%

In the last week, the Software industry is up 1.3%, with Microsoft up 2.0%. In the same time, Strategy was down 9.9%. In the past year, the industry is down 3.5%. Looking forward, earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 04 Apr 2026US$5.4tUS$668.3bUS$161.5b30x33.5x8.1x
Mon, 02 Mar 2026US$5.6tUS$664.9bUS$163.7b26.4x34.1x8.4x
Wed, 28 Jan 2026US$6.8tUS$649.2bUS$159.8b30.4x42.3x10.4x
Fri, 26 Dec 2025US$7.2tUS$645.4bUS$164.7b31.9x43.8x11.2x
Sun, 23 Nov 2025US$6.8tUS$640.4bUS$160.5b28.8x42.5x10.6x
Tue, 21 Oct 2025US$7.7tUS$621.4bUS$151.7b35.3x51x12.5x
Thu, 18 Sep 2025US$7.7tUS$620.9bUS$151.9b34.9x50.7x12.4x
Sat, 16 Aug 2025US$7.5tUS$614.4bUS$150.3b37.2x50.1x12.2x
Mon, 14 Jul 2025US$7.3tUS$598.9bUS$131.4b41.8x55.7x12.2x
Wed, 11 Jun 2025US$7.0tUS$595.8bUS$131.6b41.1x53x11.7x
Fri, 09 May 2025US$6.4tUS$590.3bUS$132.1b32.8x48.1x10.8x
Sun, 06 Apr 2025US$5.3tUS$581.3bUS$131.8b28.8x39.9x9.1x
Tue, 04 Mar 2025US$6.1tUS$580.6bUS$129.3b34.5x47.5x10.6x
Thu, 30 Jan 2025US$6.7tUS$576.9bUS$129.4b44.5x52.1x11.7x
Sat, 28 Dec 2024US$6.6tUS$569.1bUS$128.8b40.7x50.9x11.5x
Mon, 25 Nov 2024US$6.5tUS$567.3bUS$127.2b42.4x51.3x11.5x
Wed, 23 Oct 2024US$6.1tUS$551.7bUS$124.1b36x48.9x11x
Fri, 20 Sep 2024US$6.0tUS$552.4bUS$124.0b39x48.2x10.8x
Sun, 18 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.7x10.6x
Tue, 16 Jul 2024US$6.0tUS$530.6bUS$118.4b40.8x50.9x11.4x
Thu, 13 Jun 2024US$5.3tUS$477.8bUS$107.3b40.5x49.6x11.1x
Sat, 11 May 2024US$5.2tUS$474.3bUS$104.3b43.4x50x11x
Mon, 08 Apr 2024US$5.4tUS$466.0bUS$98.3b43.2x54.8x11.6x
Wed, 06 Mar 2024US$5.4tUS$468.7bUS$98.2b42.2x55.4x11.6x
Fri, 02 Feb 2024US$5.5tUS$496.4bUS$88.0b43.1x62.1x11x
Sun, 31 Dec 2023US$5.2tUS$486.1bUS$82.9b47.3x62.4x10.6x
Tue, 28 Nov 2023US$5.0tUS$482.6bUS$79.9b44.2x62.5x10.4x
Thu, 26 Oct 2023US$4.5tUS$483.9bUS$78.6b41.9x57.3x9.3x
Sat, 23 Sep 2023US$4.4tUS$480.7bUS$73.0b45.4x60.3x9.1x
Mon, 21 Aug 2023US$4.3tUS$474.4bUS$70.6b43.5x61.5x9.2x
Wed, 19 Jul 2023US$4.8tUS$460.7bUS$60.1b50x79.5x10.4x
Fri, 16 Jun 2023US$4.5tUS$460.1bUS$62.2b46.9x71.9x9.7x
Sun, 14 May 2023US$4.0tUS$456.8bUS$61.1b39.2x65.4x8.7x
Tue, 11 Apr 2023US$3.9tUS$453.6bUS$60.5b43.4x64.8x8.6x
Price to Earnings Ratio

64.8x


Total Market Cap: US$3.9tTotal Earnings: US$60.5bTotal Revenue: US$453.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.1x202420252026
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 33.2x which is lower than its 3-year average PE of 53.1x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 39% 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 Market3.46%
Tech4.66%
Software4.49%
Systems Software4.99%
Application Software3.37%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 21.4x.
    • Analysts are expecting annual earnings growth of 25.4%, which is higher than its past year's earnings growth of 18.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.8x.
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 18% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 16% 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
MSFT MicrosoftUS$373.464.7%
+US$123.9b		3.8%PE23.3x
ORCL OracleUS$146.384.8%
+US$19.3b		14.1%PE26x
PANW Palo Alto NetworksUS$163.2111.0%
+US$13.1b		6.3%PE103.3x
PLTR Palantir TechnologiesUS$148.463.8%
+US$12.9b		100.6%PE218.5x
CRWD CrowdStrike HoldingsUS$399.128.0%
+US$7.5b		24.1%PS21x

Latest News

CRM
US$187.18
Salesforce
7D
4.4%
1Y
-22.3%
FTNT
US$82.53
Fortinet
7D
5.5%
1Y
-2.6%
PLTR
US$148.46
Palantir Technologies
7D
3.8%
1Y
100.6%
ORCL
US$146.38
Oracle
7D
4.8%
1Y
14.1%

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Apr 02
CRCL
US$90.26
Circle Internet Group
7D
-3.6%
1Y
n/a
CRWD
US$399.12
CrowdStrike Holdings
7D
8.0%
1Y
24.1%

CRWD: Future Performance Will Reflect AI Security Partnerships And Platform Share Gains

The analyst fair value estimate for CrowdStrike Holdings has been adjusted slightly lower by around $1 to $489.86, as analysts weigh sector wide multiple compression against company specific views on AI tailwinds, platform breadth, and ongoing share gains highlighted across recent upgrades and price target resets. Analyst Commentary Recent Street research around CrowdStrike reflects a mix of optimism on execution and AI driven product breadth, alongside a reset in valuations as software multiples compress across the sector.
BSY
US$34.60
Bentley Systems
7D
-0.5%
1Y
-10.5%
PANW
US$163.21
Palo Alto Networks
7D
11.0%
1Y
6.3%
ADBE
US$242.92
Adobe
7D
3.4%
1Y
-30.4%

ADBE: Generative AI Monetization And Freemium User Growth Will Drive Future Revenue

Adobe's updated fair value estimate has been reduced from about $408 to roughly $328 as analysts factor in a lower future P/E, softer growth assumptions, and fresh uncertainty tied to the CEO transition and AI-driven shifts in its core businesses. Analyst Commentary Recent research on Adobe reflects a clear reset in expectations, with many firms cutting price targets and adjusting ratings to reflect CEO transition risk, AI related disruption, and softer growth metrics such as net new annual recurring revenue.
CIFR
US$12.82
Cipher Digital
7D
-6.7%
1Y
510.5%

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Analysts have nudged Cipher Digital's fair value estimate slightly higher to $27.10, while trimming Street price targets such as $22 to $20 and $34 to $32 as they factor in lower hash prices, higher spending, an anticipated exit from bitcoin mining in 2027, and a heavier tilt toward long duration lease revenues. Analyst Commentary Street research on Cipher Digital paints a mixed picture, with some analysts leaning into the long term lease story while others focus on execution risk around the pivot away from bitcoin mining.
IREN
US$34.77
IREN
7D
-0.9%
1Y
485.4%

IREN: Microsoft AI Contract Will Drive Transformative Data Center Expansion

The Street's blended 12 month price target for IREN has shifted modestly lower to about $76 from roughly $79, as analysts balance Macquarie's $25 cut with fresh Buy upgrades and a higher $80 target tied to IREN's large AI contract with Microsoft and a sizeable data center growth pipeline. Analyst Commentary Recent Street research on IREN shows a mix of optimism around growth optionality and caution around execution and valuation, which is feeding into the wide range of price targets and rating changes.
PRGS
US$25.76
Progress Software
7D
-6.9%
1Y
-54.1%
ALOY
US$9.19
REalloys
7D
-7.9%
1Y
216.9%
MSFT
US$373.46
Microsoft
7D
4.7%
1Y
3.8%

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MSTR
US$119.83
Strategy
7D
-4.9%
1Y
-59.2%
NN
US$16.55
NextNav
7D
-7.4%
1Y
39.2%