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U.S. Software Industry Analysis

UpdatedJun 10, 2026
DataAggregated Company Financials
Companies440
  • 7D-10.7%
  • 3M4.6%
  • 1Y-12.6%
  • YTD-11.4%

Over the last 7 days, the Software industry has dropped 11%, driven by a pullback from Microsoft of 8.6%. Meanwhile, Digital Turbine actually outperformed within the industry, gaining 15% in the last week. Overall the industry is down 13% in 12 months. 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, 11 Jun 2026US$6.2tUS$692.8bUS$155.5b27.3x40.2x9x
Sat, 09 May 2026US$6.1tUS$684.8bUS$156.1b27.5x39x8.9x
Mon, 06 Apr 2026US$5.4tUS$668.3bUS$161.4b30x33.5x8.1x
Wed, 04 Mar 2026US$5.7tUS$665.0bUS$160.7b26.4x35.4x8.5x
Fri, 30 Jan 2026US$6.8tUS$661.5bUS$174.2b28.8x38.8x10.2x
Sun, 28 Dec 2025US$7.2tUS$645.4bUS$164.7b31.7x43.7x11.2x
Tue, 25 Nov 2025US$6.8tUS$640.4bUS$160.5b30.4x42.6x10.7x
Thu, 23 Oct 2025US$7.8tUS$621.4bUS$151.8b34.3x51.3x12.5x
Sat, 20 Sep 2025US$7.8tUS$620.8bUS$151.7b35.3x51.2x12.5x
Mon, 18 Aug 2025US$7.5tUS$614.4bUS$150.3b35.7x50.2x12.3x
Wed, 16 Jul 2025US$7.4tUS$598.9bUS$131.4b43.1x56.1x12.3x
Fri, 13 Jun 2025US$7.0tUS$598.6bUS$130.5b41.3x53.4x11.6x
Sun, 11 May 2025US$6.4tUS$590.8bUS$130.8b33.7x49.2x10.9x
Tue, 08 Apr 2025US$5.3tUS$581.3bUS$131.8b28.7x39.9x9x
Thu, 06 Mar 2025US$6.0tUS$582.0bUS$129.5b34.9x46.5x10.4x
Sat, 01 Feb 2025US$6.5tUS$585.7bUS$132.3b41.2x48.8x11x
Mon, 30 Dec 2024US$6.5tUS$569.1bUS$128.8b40.7x50.5x11.4x
Wed, 27 Nov 2024US$6.5tUS$566.0bUS$127.5b42.3x51.1x11.5x
Fri, 25 Oct 2024US$6.1tUS$552.5bUS$124.3b37.2x48.8x11x
Sun, 22 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Tue, 20 Aug 2024US$5.8tUS$548.8bUS$121.5b36.3x47.7x10.6x
Thu, 18 Jul 2024US$6.0tUS$530.6bUS$118.4b41.5x50.9x11.4x
Sat, 15 Jun 2024US$5.8tUS$530.8bUS$117.8b39.8x48.9x10.9x
Mon, 13 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Wed, 10 Apr 2024US$5.4tUS$466.0bUS$98.4b43.4x54.9x11.6x
Fri, 08 Mar 2024US$5.4tUS$470.0bUS$98.4b44.7x54.4x11.4x
Sun, 04 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Tue, 02 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Thu, 30 Nov 2023US$5.0tUS$483.6bUS$80.7b45.4x62.5x10.4x
Sat, 28 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Mon, 25 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Wed, 23 Aug 2023US$4.4tUS$473.8bUS$70.7b43.8x62.6x9.3x
Fri, 21 Jul 2023US$4.6tUS$460.7bUS$60.1b48.5x77.2x10.1x
Sun, 18 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Price to Earnings Ratio

72.7x


Total Market Cap: US$4.5tTotal Earnings: US$62.3bTotal Revenue: US$460.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 51.3x202420252026
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 40.2x which is lower than its 3-year average PE of 51.3x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 9.0x.
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-3.33%
Tech-9.37%
Software-10.72%
Systems Software-10.45%
Application Software-11.37%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 48.1x.
    • Analysts are expecting annual earnings growth of 27.2%, 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
APPS Digital TurbineUS$9.8515.2%
+US$156.9m		87.6%PS2.1x
NN NextNavUS$20.874.1%
+US$111.8m		70.6%PS706.1x
ALOY REalloysUS$12.537.6%
+US$53.2m		163.7%PS937.1x
AGYS AgilysysUS$90.140.4%
+US$11.2m		-19.0%PE65.3x
BLND Blend LabsUS$1.691.8%
+US$7.3m		-52.8%PS3.2x

Latest News

CRWD
US$647.74
CrowdStrike Holdings
7D
-13.4%
1Y
35.8%
APPS
US$10.22
Digital Turbine
7D
17.9%
1Y
96.9%
ORCL
US$201.26
Oracle
7D
-12.6%
1Y
14.1%
Seeking Alpha • 4h

Oracle: Slumping Despite Big Beat

Summary Oracle Corporation delivered Q4 revenue growth of 21% and EPS growth of 24%, beating consensus on both lines. Cloud infrastructure drove nearly all of ORCL's growth, with segment revenue up over 90% year-over-year and remaining performance obligations reaching $638 billion. Heavy cloud investments led to negative free cash flow of $24 billion over the last twelve months, curtailing shareholder returns and necessitating $40 billion in new equity and debt issuance. I maintain a neutral Hold rating on ORCL stock, citing reasonable valuation, and strong growth guidance but ongoing cash burn and counterparty risk. Read the full article on Seeking Alpha
APP
US$492.98
AppLovin
7D
-13.6%
1Y
28.6%
NOW
US$106.06
ServiceNow
7D
-10.0%
1Y
-47.2%
APPF
US$168.32
AppFolio
7D
1.2%
1Y
-26.1%
PLTR
US$130.21
Palantir Technologies
7D
-8.4%
1Y
-4.5%
Seeking Alpha • Jun 09

Palantir: Even A Historic Quarter Could Not Move The Needle

Summary Palantir remains highly overvalued despite record Q1 results and operational acceleration, justifying my continued Sell rating. PLTR's US revenue surged 104% with strong commercial and government growth, but shares faded as valuation remains the binding constraint. The Nvidia partnership and sovereign AI optionality offer real growth potential, yet are insufficient to justify a P/S of 62.2. Scenario analysis across bull, base, and bear cases implies material downside from current prices, even under optimistic assumptions. Read the full article on Seeking Alpha
FICO
US$1,220.15
Fair Isaac
7D
3.9%
1Y
-32.4%
CRM
US$170.92
Salesforce
7D
-10.3%
1Y
-35.7%
CVLT
US$125.28
Commvault Systems
7D
3.7%
1Y
-33.5%
ACIW
US$43.73
ACI Worldwide
7D
5.2%
1Y
-7.1%
Narrative Update • Jun 09

ACIW: Cloud Payment Connectivity And Guidance Raise Will Drive Future Upside

Analysts are maintaining their price target for ACI Worldwide at $70.00. This reflects slightly higher assumed revenue growth and profit margins, offset by a modestly higher discount rate and a similar forward P/E multiple.
PANW
US$263.22
Palo Alto Networks
7D
-6.1%
1Y
35.4%
MSFT
US$397.36
Microsoft
7D
-7.0%
1Y
-15.9%
Seeking Alpha • Jun 08

Microsoft: The $37 Billion AI Question Investors Can't Ignore

Summary Microsoft is well-positioned in the AI era, with Azure surpassing $75B annual revenue and an AI run rate at $37B. Azure’s scale, enterprise integration, and diversified AI monetization provide robust long-term growth tailwinds, but capital intensity and margin compression risks persist. MSFT’s valuation appears fair, with much of the AI-driven upside already priced in, limiting the current margin of safety. I maintain a HOLD rating, awaiting further evidence of AI monetization outpacing capital expenditures before increasing portfolio exposure. For more such analyses, check out my profile. Read the full article on Seeking Alpha
AGYS
US$91.15
Agilysys
7D
3.2%
1Y
-18.4%
Narrative Update • Jun 07

AGYS: Subscriptions And AI Rollout Will Support Stronger Future Margin Potential

Narrative Update on Agilysys The analyst price target for Agilysys has been raised from $90 to $100. This reflects analysts' updated views that stronger subscription revenue trends could support higher margins and profitability, alongside fresh coverage highlighting the business focus on hospitality software and limited perceived AI disruption risk.
ALRM
US$46.15
Alarm.com Holdings
7D
2.6%
1Y
-21.3%
Narrative Update • Jun 05

ALRM: AI Security Expansion Will Confront Sector Repricing Risk

Analysts have kept their $40.00 price target on Alarm.com Holdings unchanged, citing only slight adjustments in discount rate, revenue growth, profit margin, and future P/E assumptions that do not materially change their overall valuation view. What's in the News Shooter Detection Systems, an Alarm.com company, reported that its SDS Perimeter Outdoor Gunshot Detection System received the Fire/Life Safety category award in the 2026 Security Sales & Integration Most Valuable Product Awards, highlighting its multi mode sensing technology designed to support accurate outdoor gunshot detection and situational awareness.
ROP
US$334.10
Roper Technologies
7D
0.7%
1Y
-41.3%
Narrative Update • Jun 02

ROP: Cash Returns And Software Mix Will Support Post Reset Re Rating

Roper Technologies' updated analyst price target has moved slightly higher to about $454 per share as analysts factor in modest adjustments to the discount rate, revenue growth, profit margin, and a lower assumed future P/E, consistent with a mix of recent price target increases and a smaller cut across covering firms. Analyst Commentary Recent Street research on Roper Technologies reflects a generally constructive stance, with several target increases and one modest trim feeding into the updated blended price target around US$454 per share.