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U.S. Software Industry Analysis

UpdatedMar 07, 2026
DataAggregated Company Financials
Companies423
  • 7D6.1%
  • 3M-18.4%
  • 1Y-1.5%
  • YTD-14.3%

In the last week, the Software industry is up 6.1%, with Microsoft up 4.1%. During this same period, the IREN underperformed, falling 10%. Despite this gain, the industry's performance has been flat over the past year. 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
Sat, 07 Mar 2026US$5.9tUS$665.5bUS$160.9b27x36.8x8.9x
Mon, 02 Feb 2026US$6.2tUS$660.6bUS$174.1b28.2x35.4x9.3x
Wed, 31 Dec 2025US$7.1tUS$645.4bUS$164.8b31.7x43.4x11.1x
Fri, 28 Nov 2025US$7.0tUS$640.4bUS$161.2b30.8x43.5x11x
Sun, 26 Oct 2025US$7.9tUS$621.4bUS$151.9b33.3x51.9x12.7x
Tue, 23 Sep 2025US$7.9tUS$620.8bUS$151.7b36.6x52.2x12.8x
Thu, 21 Aug 2025US$7.4tUS$614.8bUS$150.1b36.7x49x12x
Sat, 19 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.4x12.6x
Mon, 16 Jun 2025US$7.0tUS$598.9bUS$130.9b41.1x53.7x11.7x
Wed, 14 May 2025US$6.6tUS$590.8bUS$130.9b33.1x50.6x11.2x
Fri, 11 Apr 2025US$5.8tUS$581.3bUS$131.9b29.1x43.7x9.9x
Sun, 09 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.1x10.3x
Tue, 04 Feb 2025US$6.5tUS$585.9bUS$132.3b40.9x48.9x11x
Thu, 02 Jan 2025US$6.4tUS$569.1bUS$128.9b40.1x49.4x11.2x
Sat, 30 Nov 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Mon, 28 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49.3x11.1x
Wed, 25 Sep 2024US$6.1tUS$552.4bUS$124.0b38.3x48.9x11x
Fri, 23 Aug 2024US$5.9tUS$549.4bUS$121.8b36.3x48.4x10.7x
Sun, 21 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Tue, 18 Jun 2024US$5.8tUS$531.3bUS$118.1b39.7x49.2x10.9x
Thu, 16 May 2024US$5.3tUS$474.0bUS$104.6b44.8x50.3x11.1x
Sat, 13 Apr 2024US$5.4tUS$466.3bUS$98.4b41.9x55x11.6x
Mon, 11 Mar 2024US$5.3tUS$470.2bUS$98.5b46.9x54.2x11.3x
Wed, 07 Feb 2024US$5.3tUS$462.8bUS$89.5b46.2x58.9x11.4x
Fri, 05 Jan 2024US$5.0tUS$486.2bUS$82.8b45.7x60.3x10.3x
Sun, 03 Dec 2023US$5.1tUS$485.3bUS$81.9b46.1x62.1x10.5x
Tue, 31 Oct 2023US$4.5tUS$484.8bUS$79.0b41.8x56.8x9.3x
Thu, 28 Sep 2023US$4.3tUS$477.4bUS$73.2b44.6x59.4x9.1x
Sat, 26 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Mon, 24 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Wed, 21 Jun 2023US$4.5tUS$460.5bUS$62.3b44.2x71.9x9.7x
Fri, 19 May 2023US$4.2tUS$457.1bUS$61.1b39.9x68.1x9.1x
Sun, 16 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Tue, 14 Mar 2023US$3.5tUS$453.6bUS$60.0b42x59x7.8x
Price to Earnings Ratio

59x


Total Market Cap: US$3.5tTotal Earnings: US$60.0bTotal Revenue: US$453.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.8x202420252026
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 36.8x which is lower than its 3-year average PE of 53.8x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.9x.
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 Market-2.31%
Tech-0.53%
Software6.14%
Application Software8.64%
Systems Software5.05%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 12.5x.
    • Analysts are expecting annual earnings growth of 24.4%, which is higher than its past year's earnings growth of 20.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 40.0x.
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
MSFT MicrosoftUS$408.964.1%
+US$120.4b		4.0%PE25.5x
PLTR Palantir TechnologiesUS$157.1614.6%
+US$47.8b		85.1%PE231.3x
APP AppLovinUS$502.1415.5%
+US$22.7b		85.6%PE49.3x
ORCL OracleUS$152.965.2%
+US$21.7b		-1.4%PE28.5x
INTU IntuitUS$481.1717.6%
+US$20.0b		-21.1%PE30.7x

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US$36.70
IREN
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Cadence Design Systems
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