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U.S. Software Industry Analysis

UpdatedNov 05, 2025
DataAggregated Company Financials
Companies419
  • 7D-5.5%
  • 3M-1.2%
  • 1Y24.2%
  • YTD18.1%

Over the last 7 days, the Software industry has dropped 5.5%, driven by a pullback from Microsoft of 5.1%. Meanwhile, IREN actually outperformed within the industry, gaining 10% in the last week. In the past year, the industry has gained 24%. 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
Wed, 05 Nov 2025US$7.8tUS$637.6bUS$159.0b35.2x48.8x12.2x
Fri, 03 Oct 2025US$7.8tUS$621.4bUS$151.8b35.6x51.6x12.6x
Sun, 31 Aug 2025US$7.4tUS$616.6bUS$150.8b35.9x49x12x
Tue, 29 Jul 2025US$7.6tUS$597.2bUS$130.9b46.6x57.8x12.7x
Thu, 26 Jun 2025US$7.2tUS$599.0bUS$131.1b42.2x55x12x
Sat, 24 May 2025US$6.7tUS$593.0bUS$131.7b35.3x50.7x11.3x
Mon, 21 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.6x9.4x
Wed, 19 Mar 2025US$5.9tUS$582.8bUS$131.2b28.2x45.1x10.1x
Fri, 14 Feb 2025US$6.5tUS$588.2bUS$131.9b42.3x49.4x11.1x
Sun, 12 Jan 2025US$6.3tUS$569.1bUS$129.3b38.8x48.3x11x
Tue, 10 Dec 2024US$6.9tUS$566.7bUS$128.2b43.6x53.5x12.1x
Thu, 07 Nov 2024US$6.1tUS$562.1bUS$126.3b39.4x48x10.8x
Sat, 05 Oct 2024US$5.9tUS$551.7bUS$124.1b38.8x47.7x10.7x
Mon, 02 Sep 2024US$5.8tUS$551.5bUS$122.1b38.3x47.8x10.6x
Wed, 31 Jul 2024US$5.8tUS$532.0bUS$117.8b40x48.8x10.8x
Fri, 28 Jun 2024US$5.9tUS$531.0bUS$118.1b40.5x50.2x11.2x
Sun, 26 May 2024US$5.4tUS$475.8bUS$105.8b42.2x50.8x11.3x
Tue, 23 Apr 2024US$5.0tUS$466.6bUS$98.4b43.1x51.3x10.8x
Thu, 21 Mar 2024US$5.4tUS$465.8bUS$98.0b44.5x55x11.6x
Sat, 17 Feb 2024US$5.4tUS$465.2bUS$90.9b42.6x59x11.5x
Mon, 15 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Wed, 13 Dec 2023US$5.1tUS$485.6bUS$82.5b47.4x61.9x10.5x
Fri, 10 Nov 2023US$4.8tUS$481.8bUS$79.2b42.5x60.2x9.9x
Sun, 08 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Tue, 05 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Thu, 03 Aug 2023US$4.5tUS$466.4bUS$65.9b44.7x67.9x9.6x
Sat, 01 Jul 2023US$4.5tUS$460.6bUS$62.2b45.3x72.4x9.8x
Mon, 29 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Wed, 26 Apr 2023US$3.7tUS$453.8bUS$60.6b42x61.9x8.3x
Fri, 24 Mar 2023US$3.8tUS$453.7bUS$59.8b42.2x63.5x8.4x
Sun, 19 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Tue, 17 Jan 2023US$3.3tUS$434.5bUS$60.2b39.9x55.1x7.6x
Thu, 15 Dec 2022US$3.5tUS$433.8bUS$61.2b43x56.7x8x
Sat, 12 Nov 2022US$3.4tUS$424.7bUS$62.6b42.9x54.1x8x
Price to Earnings Ratio

54.1x


Total Market Cap: US$3.4tTotal Earnings: US$62.6bTotal Revenue: US$424.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.5x202320242025
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 48.8x which is lower than its 3-year average PE of 55.5x.
  • The 3-year average PS ratio of 10.4x is lower than the industry's current PS ratio of 12.2x.
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-2.15%
Tech-3.08%
Software-5.46%
Application Software-4.37%
Systems Software-5.94%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 23.9%, which is higher than its past year's earnings growth of 20.0% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 39.7x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% 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 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
IREN IRENUS$66.6310.3%
+US$1.7b		503.5%PE210x
CIFR Cipher MiningUS$22.5112.8%
+US$1.0b		323.1%PS42.9x
DGNX DiginexUS$18.2522.5%
+US$680.1m		n/aPS1815.6x
APPF AppFolioUS$260.626.7%
+US$603.6m		20.6%PE45.9x
CORZ Core ScientificUS$21.748.2%
+US$511.6m		67.0%PS20.2x

Latest News

SNPS
US$416.35
Synopsys
7D
-8.9%
1Y
-20.2%
PLTR
US$190.74
Palantir Technologies
7D
-4.1%
1Y
243.5%
MSTR
US$246.99
Strategy
7D
-13.2%
1Y
8.4%
CIFR
US$22.51
Cipher Mining
7D
12.8%
1Y
323.1%
IREN
US$66.63
IREN
7D
10.3%
1Y
503.5%

IREN's Bold Moves in Sustainable Bitcoin Mining & AI Data Centers

The Hyperscaler Catalyst Arrives: $9.7B Microsoft Deal It’s happened. The hyperscaler deal we’ve been anticipating since my last update has finally materialized - and it’s a big one.
CORZ
US$21.74
Core Scientific
7D
8.2%
1Y
67.0%

CORZ: Power Portfolio And AI Demand Will Unlock Substantial Upside

Core Scientific's analyst price target has increased significantly from $20.88 to $25.25 per share. This change reflects analysts' optimism following the terminated merger with CoreWeave and improved standalone growth prospects for the company.
APP
US$608.68
AppLovin
7D
-2.9%
1Y
268.5%

APP: Index Additions And Profit Margin Gains Will Shape Outlook

Analysts have slightly raised their price target for AppLovin from $646.30 to $649.96, citing expectations for higher revenue growth and improved profit margins in the future. What's in the News AppLovin has been added to several major indices, including the S&P Global 1200, S&P 500 Growth, S&P Composite 1500, and S&P 500 (Key Developments) The company was added to the S&P 500 Equal Weighted and S&P 500 Software & Services (Industry Group) indices (Key Developments) AppLovin was removed from the Russell Small Cap Comp Growth Index (Key Developments) The company repurchased 732,000 shares, bringing the total buyback to over 75 million shares under the program announced in 2022 (Key Developments) Earnings guidance for the third quarter of 2025 was provided, with expected revenue between $1,320 million and $1,340 million (Key Developments) Valuation Changes Consensus Analyst Price Target has risen slightly from $646.30 to $649.96.
ORCL
US$248.17
Oracle
7D
-11.6%
1Y
44.5%

ORCL: Accelerating AI Cloud Demand Will Drive Upside Through Major Multi-Year Contracts

Oracle's analyst price target saw a modest increase, rising by $10 to $360. Analysts pointed to continued strength in AI infrastructure demand and the company’s ability to accelerate earnings growth through fiscal 2028.
TEAM
US$165.00
Atlassian
7D
0.6%
1Y
-25.5%
MSFT
US$514.33
Microsoft
7D
-5.1%
1Y
25.0%
APPF
US$260.62
AppFolio
7D
6.7%
1Y
20.6%

APPF: AI-Driven Resident Services Will Unlock Momentum In 2024

Analysts have maintained their price target for AppFolio at $330.20 per share. This reflects continued optimism around the company's upcoming AI-driven products and resident services as key catalysts for growth.
NOW
US$887.57
ServiceNow
7D
-5.4%
1Y
-8.6%

NOW: AI Partnerships And Workflow Expansion Will Drive Upside Momentum

Analysts have raised their price target for ServiceNow, increasing the fair value estimate from $1,142.59 to $1,156.59. This change is due to adjustments in growth and profit margin expectations.
JAMF
US$12.84
Jamf Holding
7D
15.2%
1Y
-25.0%

Private Equity Buyout Will Lead To Stable Near-Term Outlook Amid Sector Headwinds

Analysts have lowered their price target for Jamf Holding from $14.20 to $13.46, citing the recently announced acquisition by Francisco Partners as the primary driver. They also note that expectations for an alternative bid remain low amid ongoing competitive and macroeconomic pressures.
ADBE
US$335.35
Adobe
7D
-6.8%
1Y
-31.1%
NTNX
US$70.07
Nutanix
7D
1.4%
1Y
8.6%
DGNX
US$18.25
Diginex
7D
22.5%
1Y
n/a