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U.S. Software Industry Analysis

UpdatedJun 11, 2026
DataAggregated Company Financials
Companies440
  • 7D-8.5%
  • 3M3.8%
  • 1Y-14.0%
  • YTD-12.9%

Over the last 7 days, the Software industry has dropped 8.5%, driven by a pullback from Microsoft of 7.0%. Overall the industry is down 14% 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
Fri, 12 Jun 2026US$6.1tUS$692.8bUS$155.5b27.9x39.1x8.8x
Sun, 10 May 2026US$6.1tUS$684.8bUS$156.1b27.5x39x8.9x
Tue, 07 Apr 2026US$5.4tUS$667.7bUS$161.5b30.1x33.5x8.1x
Thu, 05 Mar 2026US$5.8tUS$665.3bUS$160.8b26.6x35.9x8.7x
Sat, 31 Jan 2026US$6.3tUS$660.8bUS$174.2b28x36x9.5x
Mon, 29 Dec 2025US$7.2tUS$645.4bUS$164.7b31.7x43.7x11.2x
Wed, 26 Nov 2025US$6.9tUS$640.4bUS$160.5b29.8x43x10.8x
Fri, 24 Oct 2025US$7.8tUS$621.5bUS$151.8b33.6x51x12.5x
Sun, 21 Sep 2025US$7.9tUS$620.8bUS$151.7b36.3x52.2x12.8x
Tue, 19 Aug 2025US$7.5tUS$614.4bUS$150.3b36.2x50.2x12.3x
Thu, 17 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Sat, 14 Jun 2025US$7.1tUS$598.9bUS$130.9b40.7x54x11.8x
Mon, 12 May 2025US$6.4tUS$590.8bUS$130.8b33.7x49.2x10.9x
Wed, 09 Apr 2025US$5.2tUS$581.3bUS$131.9b28.3x39.7x9x
Fri, 07 Mar 2025US$6.1tUS$582.2bUS$129.5b33.3x47.4x10.6x
Sun, 02 Feb 2025US$6.5tUS$585.7bUS$132.3b41.2x48.9x11x
Tue, 31 Dec 2024US$6.5tUS$569.1bUS$128.9b40.2x50.4x11.4x
Thu, 28 Nov 2024US$6.6tUS$566.7bUS$127.6b42.1x51.8x11.7x
Sat, 26 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49x11x
Mon, 23 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Wed, 21 Aug 2024US$5.8tUS$549.1bUS$121.6b36.4x48.1x10.7x
Fri, 19 Jul 2024US$5.9tUS$530.6bUS$118.4b41.4x50x11.2x
Sun, 16 Jun 2024US$5.8tUS$531.3bUS$118.1b39.5x49.2x10.9x
Tue, 14 May 2024US$5.2tUS$474.3bUS$104.2b44.7x50.2x11x
Thu, 11 Apr 2024US$5.4tUS$466.0bUS$98.4b41.9x55.1x11.6x
Sat, 09 Mar 2024US$5.3tUS$470.2bUS$98.4b46.1x54.2x11.3x
Mon, 05 Feb 2024US$5.5tUS$497.2bUS$87.9b46x62.9x11.1x
Wed, 03 Jan 2024US$5.1tUS$486.1bUS$82.9b47.3x61.1x10.4x
Fri, 01 Dec 2023US$5.1tUS$484.8bUS$81.9b46.4x61.7x10.4x
Sun, 29 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Tue, 26 Sep 2023US$4.4tUS$477.4bUS$73.2b45.2x60.1x9.2x
Thu, 24 Aug 2023US$4.5tUS$473.8bUS$70.7b43.8x63.5x9.5x
Sat, 22 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Mon, 19 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 39.1x 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 8.8x.
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-4.05%
Tech-10.02%
Software-8.46%
Systems Software-8.20%
Application Software-9.09%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 48.6x.
    • Analysts are expecting annual earnings growth of 27.1%, 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
FICO Fair IsaacUS$1.19k1.6%
+US$433.0m		-33.6%PE36.2x
IDCC InterDigitalUS$276.666.0%
+US$402.9m		24.7%PE19.5x
PANW Palo Alto NetworksUS$279.530.1%
+US$228.2m		41.4%PE270.3x
CVLT Commvault SystemsUS$126.834.3%
+US$217.8m		-31.8%PE74x
ACIW ACI WorldwideUS$44.364.7%
+US$203.3m		-5.4%PE21.9x

Latest News

MSFT
US$390.34
Microsoft
7D
-8.8%
1Y
-18.5%
ADBE
US$218.80
Adobe
7D
-15.3%
1Y
-47.1%
ORCL
US$184.10
Oracle
7D
-22.1%
1Y
-7.9%
PANW
US$279.53
Palo Alto Networks
7D
0.1%
1Y
41.4%
CRM
US$166.45
Salesforce
7D
-11.8%
1Y
-37.6%
APP
US$478.57
AppLovin
7D
-14.4%
1Y
25.7%
APPS
US$10.14
Digital Turbine
7D
8.8%
1Y
103.6%
Narrative Update • Jun 10

APPS: Recent Stock Surge Will Challenge Support From FY27 Visibility

Analysts have nudged their price target for Digital Turbine, maintaining a fair value of $8.75. They cite improved execution, better FY27 visibility, and a broader, more resilient revenue mix as key supports for the updated view.
NBIS
US$222.24
Nebius Group
7D
-14.4%
1Y
342.0%
NOW
US$103.08
ServiceNow
7D
-13.6%
1Y
-48.8%
AI
US$11.27
C3.ai
7D
6.5%
1Y
-53.7%
PLTR
US$131.08
Palantir Technologies
7D
-7.5%
1Y
-3.0%
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$1,185.37
Fair Isaac
7D
1.6%
1Y
-33.6%
CVLT
US$126.83
Commvault Systems
7D
4.3%
1Y
-31.8%
ACIW
US$44.36
ACI Worldwide
7D
4.7%
1Y
-5.4%
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.
IDCC
US$276.66
InterDigital
7D
6.0%
1Y
24.7%
Narrative Update • Jun 07

IDCC: Licensing Strength And Patent Enforcement Will Support Durable Future Cash Flows

Narrative Update on InterDigital The Analyst Price Target for InterDigital is now set at $462.67, with analysts pointing to a slightly higher discount rate, a broadly unchanged revenue growth outlook, a stable profit margin near 42.54%, and a small adjustment to the projected future P/E as key inputs behind the update. What's in the News InterDigital reported Q1 2026 revenue of US$205.4 million, above its guidance range, with revenue, adjusted EBITDA, and EPS all ahead of company expectations, according to recent earnings coverage.
TUYA
US$2.20
Tuya
7D
9.5%
1Y
-19.4%