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U.S. Software Industry Analysis

UpdatedApr 13, 2026
DataAggregated Company Financials
Companies430
  • 7D-3.9%
  • 3M-25.4%
  • 1Y-9.5%
  • YTD-24.8%

Over the last 7 days, the Software industry has dropped 3.9%, driven by a pullback from Palantir Technologies of 13%. In contrast, Nebius Group has gained 29%. Overall the industry is down 9.5% in 12 months. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 13 Apr 2026US$5.2tUS$667.8bUS$161.5b26.8x32.1x7.8x
Wed, 11 Mar 2026US$5.9tUS$665.5bUS$160.9b27x36.8x8.9x
Fri, 06 Feb 2026US$5.8tUS$661.5bUS$174.8b25.7x33.2x8.8x
Sun, 04 Jan 2026US$6.9tUS$645.3bUS$164.7b31.7x41.9x10.7x
Tue, 02 Dec 2025US$7.1tUS$640.4bUS$161.2b32x44x11.1x
Thu, 30 Oct 2025US$8.0tUS$622.3bUS$151.9b34.8x52.9x12.9x
Sat, 27 Sep 2025US$7.7tUS$620.9bUS$151.9b36x50.8x12.4x
Mon, 25 Aug 2025US$7.4tUS$615.8bUS$150.8b35x49x12x
Wed, 23 Jul 2025US$7.5tUS$596.6bUS$130.8b42.7x57.2x12.5x
Fri, 20 Jun 2025US$7.1tUS$599.0bUS$131.1b41x54x11.8x
Sun, 18 May 2025US$6.7tUS$591.1bUS$131.4b36x51.3x11.4x
Tue, 15 Apr 2025US$5.7tUS$581.3bUS$131.8b29.2x42.9x9.7x
Thu, 13 Mar 2025US$5.7tUS$582.9bUS$130.4b29.8x44x9.9x
Sat, 08 Feb 2025US$6.6tUS$586.2bUS$132.4b43.2x49.5x11.2x
Mon, 06 Jan 2025US$6.4tUS$569.1bUS$129.0b40.3x49.9x11.3x
Wed, 04 Dec 2024US$6.6tUS$566.9bUS$127.6b42.2x51.6x11.6x
Fri, 01 Nov 2024US$5.9tUS$562.0bUS$126.3b38.5x47x10.6x
Sun, 29 Sep 2024US$6.0tUS$552.4bUS$124.0b38.7x48.6x10.9x
Tue, 27 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.8x10.6x
Thu, 25 Jul 2024US$5.9tUS$531.2bUS$118.4b39.7x50.1x11.2x
Sat, 22 Jun 2024US$5.9tUS$531.3bUS$118.0b40.6x49.7x11x
Mon, 20 May 2024US$5.3tUS$474.3bUS$104.9b45.1x51x11.3x
Wed, 17 Apr 2024US$5.2tUS$466.3bUS$98.3b40.2x52.8x11.1x
Fri, 15 Mar 2024US$5.4tUS$470.2bUS$98.7b47x54.9x11.5x
Sun, 11 Feb 2024US$5.5tUS$464.2bUS$90.0b42.7x61.1x11.8x
Tue, 09 Jan 2024US$5.0tUS$486.2bUS$82.8b45.7x60.9x10.4x
Thu, 07 Dec 2023US$5.0tUS$485.4bUS$82.3b44.7x60.7x10.3x
Sat, 04 Nov 2023US$4.7tUS$481.2bUS$79.0b43.3x58.9x9.7x
Mon, 02 Oct 2023US$4.4tUS$477.3bUS$73.4b44.8x59.9x9.2x
Wed, 30 Aug 2023US$4.5tUS$474.5bUS$71.2b45.2x63.9x9.6x
Fri, 28 Jul 2023US$4.6tUS$465.6bUS$63.6b47.9x71.8x9.8x
Sun, 25 Jun 2023US$4.4tUS$460.6bUS$62.3b44x70.9x9.6x
Tue, 23 May 2023US$4.2tUS$457.4bUS$61.0b40.4x68.7x9.2x
Thu, 20 Apr 2023US$3.9tUS$453.6bUS$60.5b42.9x65x8.7x
Price to Earnings Ratio

65x


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 52.8x202420252026
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 32.1x which is lower than its 3-year average PE of 52.8x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 7.8x.
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 Market3.08%
Tech4.15%
Software-3.91%
Systems Software-1.93%
Application Software-8.32%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 24.5x.
    • Analysts are expecting annual earnings growth of 25.6%, 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 39.7x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% 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 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
NBIS Nebius GroupUS$144.9728.8%
+US$8.2b		599.3%PE1264.8x
HUT Hut 8US$66.0933.3%
+US$1.8b		446.2%PS31.2x
WULF TeraWulfUS$18.8721.4%
+US$1.4b		664.0%PS47.5x
IREN IRENUS$39.3211.9%
+US$1.4b		583.8%PE33.5x
CIFR Cipher DigitalUS$16.5323.8%
+US$1.3b		577.5%PS29.9x

Latest News

NOW
US$83.00
ServiceNow
7D
-19.0%
1Y
-48.1%

ServiceNow: Still Trading Richly Above Peers, Correction Is Far From Over

Apr 13
APP
US$391.38
AppLovin
7D
-5.2%
1Y
65.8%
NBIS
US$144.97
Nebius Group
7D
28.8%
1Y
599.3%
INTU
US$350.94
Intuit
7D
-15.9%
1Y
-40.9%
MSFT
US$370.87
Microsoft
7D
-0.5%
1Y
-4.4%

Microsoft: Temporary CapEx Panic Masks The Long-Term Edge

Apr 10
ORCL
US$138.09
Oracle
7D
-5.1%
1Y
2.6%

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Apr 10
ADBE
US$225.35
Adobe
7D
-7.8%
1Y
-35.8%

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Apr 10
WULF
US$18.87
TeraWulf
7D
21.4%
1Y
664.0%
IDCC
US$352.27
InterDigital
7D
12.1%
1Y
74.6%
HUT
US$66.09
Hut 8
7D
33.3%
1Y
446.2%

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CIFR
US$16.53
Cipher Digital
7D
23.8%
1Y
577.5%

Cipher Digital's $9B Pivot To AI Infrastructure Is Still Undervalued

Apr 07
IREN
US$39.32
IREN
7D
11.9%
1Y
583.8%
PLTR
US$128.06
Palantir Technologies
7D
-13.4%
1Y
38.3%

Why Palantir's Best Days May Still Be Ahead

Apr 06
CRM
US$164.96
Salesforce
7D
-10.8%
1Y
-35.2%

CRM: Debt-Funded Buybacks And AI Disruption Fears Will Shape Risk Balance

Analysts have reduced their Salesforce price targets, with several cuts of $50 to $100 or more, reflecting softer organic growth expectations, sector-wide multiple compression, and increased scrutiny of how quickly Agentforce-driven demand can translate into faster revenue growth. Analyst Commentary Recent research highlights a split view on Salesforce, with many firms cutting price targets while still acknowledging potential upside from Agentforce and other AI driven products.
CORZ
US$18.32
Core Scientific
7D
12.5%
1Y
159.5%

CORZ: AI Hosting Contracts And Power Expansion Will Drive Future Upside

Analysts have raised their blended price target on Core Scientific by a few dollars, placing it in the low to mid $20s. They cite progress on AI hosting contracts, expanded power capacity, and an ongoing shift in the power portfolio from Bitcoin mining toward high performance compute.
RIOT
US$16.60
Riot Platforms
7D
22.8%
1Y
136.8%

RIOT: Power First Data Center Shift Will Drive Future AI Upside

Narrative Update Analysts have trimmed their average price targets for Riot Platforms by a few dollars to reflect reduced Bitcoin mining value, weaker recent mining results and sector multiple compression. At the same time, they note the company’s shift toward higher value data center and AI infrastructure, supported by deals such as its AMD partnership and its growing focus on high performance computing demand.