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U.S. Software Industry Analysis

UpdatedJul 02, 2026
DataAggregated Company Financials
Companies435
  • 7D5.7%
  • 3M8.9%
  • 1Y-19.6%
  • YTD-14.3%

The Software industry is up 5.7% in the last week, with Microsoft up 5.1%. In the same time, Oracle was down 9.5%. In the past year, the industry is down 20%. Looking forward, 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
Thu, 02 Jul 2026US$5.7tUS$697.7bUS$156.3b28x36.6x8.2x
Sat, 30 May 2026US$6.4tUS$689.9bUS$156.3b29.3x40.8x9.2x
Mon, 27 Apr 2026US$5.9tUS$668.8bUS$157.2b30.5x37.8x8.9x
Wed, 25 Mar 2026US$5.6tUS$668.3bUS$162.0b28.3x34.8x8.4x
Fri, 20 Feb 2026US$5.7tUS$660.9bUS$163.6b25.8x34.6x8.6x
Sun, 18 Jan 2026US$6.7tUS$648.9bUS$159.8b31.6x41.9x10.3x
Tue, 16 Dec 2025US$7.1tUS$645.9bUS$164.8b32.4x43.2x11x
Thu, 13 Nov 2025US$7.5tUS$640.5bUS$158.5b32.1x47.4x11.7x
Sat, 11 Oct 2025US$7.9tUS$621.4bUS$151.7b34.8x52x12.7x
Mon, 08 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.2x11.8x
Wed, 06 Aug 2025US$7.6tUS$610.7bUS$147.7b38.9x51.7x12.5x
Fri, 04 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Sun, 01 Jun 2025US$6.8tUS$594.2bUS$131.7b36.8x51.4x11.4x
Tue, 29 Apr 2025US$5.9tUS$581.3bUS$131.8b31.7x45x10.2x
Thu, 27 Mar 2025US$6.1tUS$582.2bUS$131.6b29x46.1x10.4x
Sat, 22 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Mon, 20 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.8x11.3x
Wed, 18 Dec 2024US$6.8tUS$569.1bUS$128.8b42x52.8x12x
Fri, 15 Nov 2024US$6.5tUS$566.7bUS$127.0b42.2x51.3x11.5x
Sun, 13 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Tue, 10 Sep 2024US$5.7tUS$551.3bUS$123.1b35.7x46.1x10.3x
Thu, 08 Aug 2024US$5.4tUS$547.6bUS$121.7b37x44.7x9.9x
Sat, 06 Jul 2024US$6.1tUS$530.5bUS$118.1b40.9x51.6x11.5x
Mon, 03 Jun 2024US$5.1tUS$476.0bUS$106.9b39.8x47.8x10.7x
Wed, 01 May 2024US$5.0tUS$476.8bUS$102.4b42.2x48.7x10.5x
Fri, 29 Mar 2024US$5.4tUS$465.9bUS$98.2b45.1x55.1x11.6x
Sun, 25 Feb 2024US$5.3tUS$466.5bUS$93.1b43.9x57.1x11.4x
Tue, 23 Jan 2024US$5.4tUS$486.2bUS$82.1b46.8x65.7x11.1x
Thu, 21 Dec 2023US$5.2tUS$486.1bUS$82.9b43.9x62.2x10.6x
Sat, 18 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x62x10.3x
Mon, 16 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Wed, 13 Sep 2023US$4.7tUS$476.3bUS$73.0b45x64.2x9.8x
Fri, 11 Aug 2023US$4.4tUS$473.0bUS$69.9b45.7x63.4x9.4x
Sun, 09 Jul 2023US$4.5tUS$460.7bUS$60.4b47x73.8x9.7x
Price to Earnings Ratio

73.8x


Total Market Cap: US$4.5tTotal Earnings: US$60.4bTotal Revenue: US$460.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 50.6x202420252026
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 36.6x which is lower than its 3-year average PE of 50.6x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 8.2x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 37% 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 Market1.64%
Tech1.15%
Software5.70%
Application Software7.41%
Systems Software5.03%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 58.0x.
    • Analysts are expecting annual earnings growth of 26.6%, 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 38.8x.
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 18% 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$389.6310.4%
+US$273.4b		-21.9%PE23.1x
PLTR Palantir TechnologiesUS$129.3020.5%
+US$52.8b		-3.8%PE135.9x
PANW Palo Alto NetworksUS$348.0618.8%
+US$44.8b		72.5%PE336.5x
APP AppLovinUS$527.0618.2%
+US$27.3b		54.3%PE45.2x
CRWD CrowdStrike HoldingsUS$193.6714.2%
+US$24.4b		50.7%PS38.7x

Latest News

APP
US$564.61
AppLovin
7D
21.4%
1Y
68.0%
DDOG
US$264.48
Datadog
7D
18.8%
1Y
95.9%
MSFT
US$384.28
Microsoft
7D
5.1%
1Y
-21.7%
NBIS
US$229.18
Nebius Group
7D
-11.7%
1Y
358.6%
CRCL
US$61.95
Circle Internet Group
7D
-12.7%
1Y
-65.2%
WULF
US$23.58
TeraWulf
7D
-12.6%
1Y
367.9%
RIOT
US$23.96
Riot Platforms
7D
-12.6%
1Y
96.4%
NOW
US$105.80
ServiceNow
7D
12.8%
1Y
-47.6%
IREN
US$43.32
IREN
7D
-13.9%
1Y
176.6%
Narrative Update • Jul 01

IREN: Large AI Cloud Contracts And Financing Will Drive Future Upside

Analysts have raised their blended price target for Iren to about $81 from roughly $70, citing a larger long-term AI infrastructure pipeline, new hyperscale and GPU cloud contracts, and expanded financing capacity that supports the company’s shift away from crypto mining toward AI data center and cloud services. Analyst Commentary Recent research coverage of Iren highlights a mix of enthusiasm around the AI data center opportunity and awareness of execution and contract risks as the company pivots away from crypto mining and scales its infrastructure footprint.
ORCL
US$142.50
Oracle
7D
-9.5%
1Y
-38.0%
PLTR
US$125.73
Palantir Technologies
7D
10.8%
1Y
-4.8%
SNPS
US$454.53
Synopsys
7D
-2.0%
1Y
-13.1%
CIFR
US$22.84
Cipher Digital
7D
-12.9%
1Y
302.1%
FTNT
US$158.98
Fortinet
7D
9.4%
1Y
55.5%
CRWD
US$193.19
CrowdStrike Holdings
7D
13.9%
1Y
50.3%
PANW
US$352.04
Palo Alto Networks
7D
23.4%
1Y
78.7%