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U.S. Software Industry Analysis

UpdatedMar 12, 2026
DataAggregated Company Financials
Companies424
  • 7D0.4%
  • 3M-19.3%
  • 1Y-0.4%
  • YTD-15.3%

In the last week, the Software industry is up 1.3%, with Oracle up 7.1%. The industry has been flat over the past 12 months despite the gain this week. 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
Thu, 12 Mar 2026US$5.8tUS$665.5bUS$160.9b28.1x36.2x8.8x
Sat, 07 Feb 2026US$5.5tUS$662.4bUS$162.0b26.9x34.1x8.3x
Mon, 05 Jan 2026US$6.9tUS$645.3bUS$164.7b31.7x41.9x10.7x
Wed, 03 Dec 2025US$7.1tUS$640.4bUS$161.2b32x44.1x11.1x
Fri, 31 Oct 2025US$7.9tUS$636.2bUS$154.8b34.1x50.8x12.4x
Sun, 28 Sep 2025US$7.7tUS$620.9bUS$151.9b36x51x12.5x
Tue, 26 Aug 2025US$7.4tUS$615.8bUS$150.8b35x48.9x12x
Thu, 24 Jul 2025US$7.5tUS$596.6bUS$130.8b42.8x57x12.5x
Sat, 21 Jun 2025US$7.1tUS$599.0bUS$131.1b40.7x53.9x11.8x
Mon, 19 May 2025US$6.7tUS$591.1bUS$131.4b36x51.3x11.4x
Wed, 16 Apr 2025US$5.7tUS$581.3bUS$131.8b29.6x43.1x9.8x
Fri, 14 Mar 2025US$5.8tUS$582.4bUS$131.4b28.3x44.2x10x
Sun, 09 Feb 2025US$6.5tUS$586.2bUS$132.4b43.2x49.1x11.1x
Tue, 07 Jan 2025US$6.4tUS$569.1bUS$129.0b40.4x49.9x11.3x
Thu, 05 Dec 2024US$6.6tUS$566.6bUS$127.8b43.1x51.7x11.7x
Sat, 02 Nov 2024US$5.9tUS$562.2bUS$126.3b39.5x47x10.6x
Mon, 30 Sep 2024US$6.0tUS$552.4bUS$124.0b38.7x48.6x10.9x
Wed, 28 Aug 2024US$5.8tUS$550.2bUS$121.7b37.3x47.6x10.5x
Fri, 26 Jul 2024US$5.7tUS$532.0bUS$117.7b40.3x48.6x10.8x
Sun, 23 Jun 2024US$5.9tUS$531.3bUS$118.0b40.6x50.1x11.1x
Tue, 21 May 2024US$5.3tUS$474.3bUS$104.9b45.6x51x11.3x
Thu, 18 Apr 2024US$5.2tUS$466.7bUS$98.4b40.7x52.6x11.1x
Sat, 16 Mar 2024US$5.5tUS$471.0bUS$98.1b45.8x55.9x11.6x
Mon, 12 Feb 2024US$5.5tUS$464.2bUS$90.0b42.7x61.1x11.8x
Wed, 10 Jan 2024US$5.1tUS$486.2bUS$82.8b45.6x61.9x10.5x
Fri, 08 Dec 2023US$5.0tUS$485.4bUS$82.4b46.1x60.6x10.3x
Sun, 05 Nov 2023US$4.7tUS$481.2bUS$79.0b43.3x58.9x9.7x
Tue, 03 Oct 2023US$4.4tUS$477.3bUS$73.4b44.5x59.9x9.2x
Thu, 31 Aug 2023US$4.6tUS$474.5bUS$71.2b44.7x64.2x9.6x
Sat, 29 Jul 2023US$4.6tUS$466.1bUS$64.9b47.7x70.3x9.8x
Mon, 26 Jun 2023US$4.4tUS$460.6bUS$62.3b44x70.9x9.6x
Wed, 24 May 2023US$4.1tUS$457.4bUS$60.9b39.9x67.7x9x
Fri, 21 Apr 2023US$3.9tUS$453.6bUS$60.5b42.6x64.4x8.6x
Sun, 19 Mar 2023US$3.8tUS$453.6bUS$59.7b42.2x63.6x8.4x
Price to Earnings Ratio

63.6x


Total Market Cap: US$3.8tTotal Earnings: US$59.7bTotal Revenue: US$453.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.7x202420252026
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 53.7x.
  • 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-1.47%
Tech0.73%
Software0.42%
Systems Software1.16%
Application Software-1.16%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 14.1x.
    • Analysts are expecting annual earnings growth of 24.6%, 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 25% over the next 5 years.
  • This is better than its past earnings growth rate of 20% 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
ORCL OracleUS$163.127.1%
+US$30.9b		8.1%PE30.4x
CRWD CrowdStrike HoldingsUS$442.038.4%
+US$9.3b		27.5%PS23.3x
PANW Palo Alto NetworksUS$164.934.0%
+US$5.2b		-8.1%PE105x
NBIS Nebius GroupUS$112.0017.1%
+US$4.1b		328.0%PE977.1x
DDOG DatadogUS$127.497.7%
+US$3.2b		25.0%PE418.7x

Latest News

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1Y
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1Y
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7D
7.1%
1Y
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MSFT
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7D
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1Y
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1Y
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7D
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1Y
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7D
11.8%
1Y
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7D
4.0%
1Y
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DDOG
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Datadog
7D
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1Y
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7D
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1Y
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NOW
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ServiceNow
7D
1.6%
1Y
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HUBS
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HubSpot
7D
-7.0%
1Y
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CRWD
US$442.03
CrowdStrike Holdings
7D
8.4%
1Y
27.5%

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CDNS
US$294.16
Cadence Design Systems
7D
-3.7%
1Y
23.0%

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US$151.60
Palantir Technologies
7D
-1.0%
1Y
81.2%

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