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U.S. Software Industry Analysis

UpdatedFeb 06, 2026
DataAggregated Company Financials
Companies429
  • 7D-12.2%
  • 3M-26.1%
  • 1Y-16.9%
  • YTD-20.4%

Over the last 7 days, the Software industry has dropped 12%, driven by Microsoft declining 9.2%. Overall the industry is down 17% in 12 months. Looking forward, 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
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
Sat, 18 Mar 2023US$3.8tUS$453.6bUS$59.7b42.2x63.6x8.4x
Mon, 13 Feb 2023US$3.6tUS$437.0bUS$57.8b42.8x62.6x8.3x
Price to Earnings Ratio

62.6x


Total Market Cap: US$3.6tTotal Earnings: US$57.8bTotal Revenue: US$437.0bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.5x202420252026
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 54.5x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.8x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 45% per year over the last three years.
  • Revenues for these companies have grown 15% 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-2.98%
Tech-6.82%
Software-12.23%
Systems Software-10.69%
Application Software-15.62%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 3.9x.
    • Analysts are expecting annual earnings growth of 22.8%, which is lower than the prior year's growth of 30.7% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 40.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 23% over the next 5 years.
  • However this is lower than its past earnings growth rate of 31% 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
IDCC InterDigitalUS$345.054.3%
+US$363.5m		62.9%PE17.9x
EGHT 8x8US$2.7366.5%
+US$153.0m		-3.9%PS0.5x
ATEN A10 NetworksUS$19.339.1%
+US$112.4m		-5.9%PE27.3x
DLB Dolby LaboratoriesUS$63.971.5%
+US$89.8m		-24.2%PE25.4x
PRGS Progress SoftwareUS$41.414.3%
+US$71.6m		-27.6%PE23.8x

Latest News

IDCC
US$345.05
InterDigital
7D
4.3%
1Y
62.9%
PTC
US$153.94
PTC
7D
0.3%
1Y
-10.3%
DLB
US$63.97
Dolby Laboratories
7D
1.5%
1Y
-24.2%
CRWD
US$377.16
CrowdStrike Holdings
7D
-15.2%
1Y
-10.3%
ATEN
US$19.33
A10 Networks
7D
9.1%
1Y
-5.9%
MSFT
US$393.67
Microsoft
7D
-9.2%
1Y
-5.3%
PANW
US$154.77
Palo Alto Networks
7D
-12.2%
1Y
-17.4%
EGHT
US$2.73
8x8
7D
66.5%
1Y
-3.9%

EGHT: Future Revenue Guidance Will Likely Prove Too Optimistic

Analysts have raised their fair value estimate for 8x8 from $1.50 to $2.00, citing updated assumptions regarding revenue growth, discount rate, profit margins, and future P/E expectations. What's in the News 8x8 issued earnings guidance for the fourth quarter of fiscal 2026, with expected total revenue between US$178.5 million and US$183.5 million.
CRM
US$189.97
Salesforce
7D
-11.3%
1Y
-42.6%
PRGS
US$41.41
Progress Software
7D
4.3%
1Y
-27.6%
ORCL
US$136.48
Oracle
7D
-19.2%
1Y
-20.8%
PLTR
US$130.01
Palantir Technologies
7D
-14.4%
1Y
16.8%
INTU
US$434.91
Intuit
7D
-13.5%
1Y
-26.3%
APP
US$375.23
AppLovin
7D
-34.1%
1Y
-1.4%

APP: Ongoing Buybacks And Rich Margins Will Likely Keep Shares Rangebound

Analysts now see lower upside for AppLovin, trimming their price expectations from about US$544.25 to roughly US$530.78, citing updated assumptions around discount rates, revenue growth, profit margins, and future P/E levels. What's in the News AppLovin issued earnings guidance for the fourth quarter of 2025, with expected revenue in a range of US$1,570m to US$1,600m.
HKD
US$1.52
AMTD Digital
7D
13.4%
1Y
-52.5%
CCSI
US$22.90
Consensus Cloud Solutions
7D
7.2%
1Y
-17.4%