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U.S. Software Industry Analysis

UpdatedJun 08, 2026
DataAggregated Company Financials
Companies440
  • 7D-9.5%
  • 3M8.2%
  • 1Y-9.7%
  • YTD-8.4%

Over the last 7 days, the Software industry has dropped 9.5%, driven by Microsoft declining 9.5%. In contrast, NextNav has gained 8.4%. Overall the industry is down 9.7% in 12 months. Earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 08 Jun 2026US$6.3tUS$692.7bUS$155.4b28.2x40.5x9.1x
Wed, 06 May 2026US$5.9tUS$681.1bUS$162.7b30.4x36.5x8.7x
Fri, 03 Apr 2026US$5.4tUS$668.3bUS$161.4b30x33.2x8x
Sun, 01 Mar 2026US$5.6tUS$664.9bUS$163.7b26.4x34.1x8.4x
Tue, 27 Jan 2026US$6.7tUS$649.0bUS$159.9b30x41.9x10.3x
Thu, 25 Dec 2025US$7.2tUS$645.4bUS$164.7b31.9x43.8x11.2x
Sat, 22 Nov 2025US$6.8tUS$640.4bUS$160.2b29.6x42.7x10.7x
Mon, 20 Oct 2025US$7.7tUS$621.4bUS$151.7b34.9x50.8x12.4x
Wed, 17 Sep 2025US$7.7tUS$620.9bUS$151.9b34.7x50.9x12.5x
Fri, 15 Aug 2025US$7.5tUS$614.4bUS$153.3b36x49.2x12.3x
Sun, 13 Jul 2025US$7.3tUS$598.9bUS$131.4b41.8x55.6x12.2x
Tue, 10 Jun 2025US$6.9tUS$595.8bUS$131.6b40.9x52.7x11.7x
Thu, 08 May 2025US$6.3tUS$589.6bUS$131.3b33.8x48.2x10.7x
Sat, 05 Apr 2025US$5.5tUS$581.4bUS$131.8b28.8x42x9.5x
Mon, 03 Mar 2025US$6.2tUS$580.6bUS$129.1b34.5x47.6x10.6x
Wed, 29 Jan 2025US$6.6tUS$576.9bUS$129.4b43.6x51.3x11.5x
Fri, 27 Dec 2024US$6.6tUS$569.1bUS$128.8b41.1x51.5x11.6x
Sun, 24 Nov 2024US$6.5tUS$567.3bUS$127.2b42.4x51.3x11.5x
Tue, 22 Oct 2024US$6.1tUS$551.7bUS$124.1b37.5x48.9x11x
Thu, 19 Sep 2024US$6.0tUS$552.4bUS$124.0b38.7x48.6x10.9x
Sat, 17 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.8x10.6x
Mon, 15 Jul 2024US$6.0tUS$530.6bUS$118.4b40.7x50.9x11.4x
Wed, 12 Jun 2024US$5.3tUS$477.8bUS$107.3b40x49.2x11x
Fri, 10 May 2024US$5.2tUS$474.1bUS$104.8b44.3x49.6x11x
Sun, 07 Apr 2024US$5.4tUS$466.0bUS$98.3b43.2x54.8x11.6x
Tue, 05 Mar 2024US$5.4tUS$468.6bUS$98.1b43.2x55.4x11.6x
Thu, 01 Feb 2024US$5.5tUS$496.1bUS$87.9b46.3x62.9x11.1x
Sat, 30 Dec 2023US$5.2tUS$486.2bUS$82.8b47.3x62.5x10.7x
Mon, 27 Nov 2023US$5.0tUS$482.6bUS$79.9b46.4x62.4x10.3x
Wed, 25 Oct 2023US$4.5tUS$477.3bUS$73.7b41.9x60.5x9.3x
Fri, 22 Sep 2023US$4.4tUS$480.7bUS$73.0b45.1x60.4x9.2x
Sun, 20 Aug 2023US$4.3tUS$474.4bUS$70.6b42.8x61.5x9.2x
Tue, 18 Jul 2023US$4.6tUS$460.7bUS$60.1b49x77x10x
Thu, 15 Jun 2023US$4.5tUS$460.1bUS$62.1b44.6x71.9x9.7x
Price to Earnings Ratio

71.9x


Total Market Cap: US$4.5tTotal Earnings: US$62.1bTotal Revenue: US$460.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 51.4x202420252026
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 40.5x which is lower than its 3-year average PE of 51.4x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 9.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 36% 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-2.49%
Tech-5.96%
Software-9.53%
Systems Software-8.87%
Application Software-11.16%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 47.2x.
    • Analysts are expecting annual earnings growth of 27.3%, which is higher than its past year's earnings growth of 10.8% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.1x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 17% 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
NN NextNavUS$21.608.4%
+US$227.6m		75.2%PS730.7x
ALOY REalloysUS$12.4813.6%
+US$89.1m		158.9%PS933.4x
IDCC InterDigitalUS$260.640.9%
+US$59.4m		14.3%PE18.4x
ADEA AdeiaUS$28.981.3%
+US$40.8m		110.8%PE26.2x
SVCO Silvaco GroupUS$11.305.9%
+US$20.6m		128.7%PS5.5x

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