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U.S. Software Industry Analysis

UpdatedMar 05, 2026
DataAggregated Company Financials
Companies423
  • 7D3.5%
  • 3M-19.3%
  • 1Y-5.5%
  • YTD-15.7%

In the last week, the Software industry is up 3.5%, with Palantir Technologies up 13%. In contrast, the industry has lost 5.5% in the last 12 months. Earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Wed, 17 May 2023US$4.0tUS$456.8bUS$61.1b38.7x66x8.8x
Fri, 14 Apr 2023US$3.9tUS$453.6bUS$60.5b43.9x65.2x8.7x
Sun, 12 Mar 2023US$3.5tUS$453.6bUS$60.0b42.3x58.2x7.7x
Price to Earnings Ratio

58.2x


Total Market Cap: US$3.5tTotal Earnings: US$60.0bTotal Revenue: US$453.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.8x202420252026
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 35.9x which is lower than its 3-year average PE of 53.8x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.7x.
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-1.22%
Tech-2.70%
Software3.48%
Application Software7.19%
Systems Software1.90%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 11.9x.
    • Analysts are expecting annual earnings growth of 24.7%, which is higher than its past year's earnings growth of 20.7% 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 roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 15% 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
PLTR Palantir TechnologiesUS$153.1912.7%
+US$41.3b		90.4%PE225.5x
MSFT MicrosoftUS$405.200.9%
+US$25.8b		2.1%PE25.2x
APP AppLovinUS$482.8114.5%
+US$20.6b		51.8%PE47.4x
INTU IntuitUS$440.1415.5%
+US$15.6b		-28.7%PE28x
ORCL OracleUS$152.373.0%
+US$12.9b		-5.7%PE28.4x

Latest News

INTU
US$440.14
Intuit
7D
15.5%
1Y
-28.7%
ESTC
US$51.85
Elastic
7D
-10.6%
1Y
-52.7%
CRWD
US$407.68
CrowdStrike Holdings
7D
12.2%
1Y
11.6%
SNPS
US$430.98
Synopsys
7D
-4.0%
1Y
-3.8%
APP
US$482.81
AppLovin
7D
14.5%
1Y
51.8%

APP: Higher 2026 Guidance And Strong Margins Will Support Further Upside

Analysts have lowered their AppLovin price target to $651.43 from $737.21 as they incorporate updated assumptions around revenue growth, profit margins and a reduced future P/E multiple, which reflects a more balanced view of the company’s risk and return profile. What's in the News AppLovin issued earnings guidance for the first quarter of 2026, with total revenue expected to be in the range of $1.745 billion to $1.775 billion (Key Developments).
NBIS
US$97.78
Nebius Group
7D
-7.9%
1Y
224.1%

NBIS: Debt Funding And Contract Concentration Will Pressure Future Share Price

Analysts have raised their Nebius Group price targets, including one increase to $232 from $211, citing higher long term revenue assumptions and a lower future P/E multiple, while fair value in this model remains at $70. Analyst Commentary Recent research coverage on Nebius Group has centered on its positioning as a full stack AI infrastructure provider, its relationship with large cloud customers, and how these factors align with current valuation expectations.
ORCL
US$152.37
Oracle
7D
3.0%
1Y
-5.7%
CRM
US$193.08
Salesforce
7D
0.7%
1Y
-33.9%
NOW
US$113.86
ServiceNow
7D
9.2%
1Y
-37.8%

NOW: Future AI And Cybersecurity Expansion Will Drive Long Term Upside

Analysts have revised their ServiceNow price target from about $904 to roughly $133. This reflects updated views on fair value, discount rate, revenue growth, profit margin, and future P/E assumptions.
PLTR
US$153.19
Palantir Technologies
7D
12.7%
1Y
90.4%

Analysis of Palantir Technologies: Commercial Acceleration and Financial Maturity

Palantir Technologies Inc. has evolved from a specialized government contractor into a broad-market software provider.
FIG
US$29.64
Figma
7D
-5.1%
1Y
n/a
WULF
US$15.37
TeraWulf
7D
-14.2%
1Y
314.3%
ZM
US$78.02
Zoom Communications
7D
-8.7%
1Y
3.2%
MSFT
US$405.20
Microsoft
7D
0.9%
1Y
2.1%
PANW
US$158.56
Palo Alto Networks
7D
9.5%
1Y
-14.0%

PANW: AI Security Platform Consolidation Will Drive Future Share Repricing

The updated analyst price target for Palo Alto Networks has been reduced to $209.61 from $226.65 as analysts trim valuation multiples and fair value assumptions following Q2 earnings, while many still highlight resilient cybersecurity demand and limited disruption from emerging AI developer tools. Analyst Commentary Street research on Palo Alto Networks has turned more cautious on valuation multiples, even as many firms still flag resilient demand for cybersecurity platforms and limited impact from new AI developer tools such as Claude Code Security.
AUR
US$4.49
Aurora Innovation
7D
-8.0%
1Y
-38.0%