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U.S. Software Industry Analysis

UpdatedMar 02, 2026
DataAggregated Company Financials
Companies422
  • 7D-0.1%
  • 3M-21.1%
  • 1Y-10.0%
  • YTD-19.3%

Last week, the Software industry hasn't moved much but Salesforce is up 5.2% in that time. Unfortunately though, the industry is down 10% over the past 12 months. 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
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
Thu, 09 Mar 2023US$3.6tUS$453.2bUS$59.6b43.2x60.7x8x
Price to Earnings Ratio

60.7x


Total Market Cap: US$3.6tTotal Earnings: US$59.6bTotal Revenue: US$453.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.9x202420252026
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 34.1x which is lower than its 3-year average PE of 53.9x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.4x.
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-0.57%
Tech-2.05%
Software-0.10%
Application Software2.42%
Systems Software-1.18%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 11.0x.
    • Analysts are expecting annual earnings growth of 23.8%, which is higher than its past year's earnings growth of 21.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below 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.
  • This is roughly in line with its past earnings growth rate.
  • 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
INTU IntuitUS$409.0313.8%
+US$13.1b		-32.0%PE26.1x
ORCL OracleUS$145.402.9%
+US$11.8b		-10.3%PE27.1x
CRM SalesforceUS$194.795.2%
+US$9.0b		-34.6%PE24.5x
NOW ServiceNowUS$108.017.2%
+US$7.5b		-40.7%PE64.6x
ADBE AdobeUS$262.416.4%
+US$6.5b		-40.5%PE15.1x

Latest News

ESTC
US$52.07
Elastic
7D
-10.4%
1Y
-55.3%
INTU
US$409.03
Intuit
7D
13.8%
1Y
-32.0%
CHKP
US$152.07
Check Point Software Technologies
7D
-4.4%
1Y
-31.0%

CHKP: Limited China Exposure Will Support AI Security Partnerships Going Forward

Analysts have reduced their price target for Check Point Software Technologies by $13.02 to $204.61. This reflects updated assumptions around discount rates, profitability, and revenue growth after a series of mixed reactions to recent results and sector research.
SNPS
US$414.00
Synopsys
7D
-1.6%
1Y
-6.6%
ZM
US$73.94
Zoom Communications
7D
-18.1%
1Y
0.3%
MANH
US$135.43
Manhattan Associates
7D
-6.1%
1Y
-23.4%
CRWD
US$371.98
CrowdStrike Holdings
7D
6.2%
1Y
-2.8%
NOW
US$108.01
ServiceNow
7D
7.2%
1Y
-40.7%
CRM
US$194.79
Salesforce
7D
5.2%
1Y
-34.6%
MSFT
US$392.74
Microsoft
7D
-1.1%
1Y
-1.1%
WDAY
US$133.76
Workday
7D
-2.9%
1Y
-49.2%

AI Adoption And Global Expansion Will Underpin A Stronger Long Term Thesis

Catalysts About Workday Workday provides cloud based HR and finance software that unifies people, processes and data on a single platform. What are the underlying business or industry changes driving this perspective?
CDNS
US$301.40
Cadence Design Systems
7D
7.7%
1Y
24.7%
ORCL
US$145.40
Oracle
7D
2.9%
1Y
-10.3%

ORCL: AI Infrastructure Buildout And Debt Funding Will Drive Future Upside

Analysts have trimmed their average price targets on Oracle by around $20 to $30. The changes reflect recent rating adjustments and revised expectations for fair value, discount rate, revenue growth, profit margins, and future P/E assumptions.
ADBE
US$262.41
Adobe
7D
6.4%
1Y
-40.5%

ADBE: AI Transition And Creative Ecosystem Partnerships Will Reshape Future Cash Flows

Our fair value estimate for Adobe has edged higher to $580.27 from $575.83 as analysts broadly reduce price targets and ratings in response to softer Digital Media growth expectations, questions about the durability of the competitive moat, and concerns that AI benefits may be slower to show up in revenue and margins than previously hoped. Analyst Commentary Recent Street research on Adobe has tilted more cautious, with several firms cutting ratings and price targets as they reassess Digital Media growth expectations, competition, and the timing of AI monetization.
APP
US$434.77
AppLovin
7D
3.8%
1Y
33.5%

APP: Higher 2026 Revenue Outlook And Rich Margins Will Support Upside Potential

Analysts have adjusted their price target on AppLovin to $476.89 from $530.78, citing updated assumptions around revenue growth, profit margins, and future P/E multiples. What's in the News AppLovin issued new earnings guidance for the first quarter of 2026, setting expected total revenue in a range of US$1.745b to US$1.775b (Key Developments).
NBIS
US$91.19
Nebius Group
7D
-9.4%
1Y
224.5%

NBIS: Microsoft Contract And 2.5GW Power Sourcing Will Support Future Capacity

Analysts have kept their Nebius Group price target steady at $211, but are now using slightly higher discount rates and a richer future P/E of about 34x. This reflects a mix of bullish views on the Microsoft contract, cautious revenue and margin assumptions, and a wide range of initial ratings from neutral to top pick calls.