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U.S. Software Industry Analysis

UpdatedMar 02, 2026
DataAggregated Company Financials
Companies422
  • 7D-0.1%
  • 3M-21.1%
  • 1Y-10.0%
  • YTD-19.3%

Last week, the Software industry hasn't moved much but Microsoft is up 3.8% in that time. Unfortunately though, the industry is down 10% over the past 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
Wed, 04 Mar 2026US$5.6tUS$664.9bUS$163.7b26.4x34.1x8.4x
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
Tue, 16 May 2023US$4.0tUS$456.9bUS$61.1b39.9x65.8x8.8x
Thu, 13 Apr 2023US$3.9tUS$453.6bUS$60.5b43.7x63.9x8.5x
Sat, 11 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 34.1x 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 8.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% 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-0.57%
Tech-2.05%
Software-0.10%
Application Software2.42%
Systems Software-1.18%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 11.6x.
    • Analysts are expecting annual earnings growth of 23.8%, which is higher than its past year's earnings growth of 21.1% 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 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 16% 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$403.933.8%
+US$110.9b		3.9%PE25.1x
PLTR Palantir TechnologiesUS$147.229.7%
+US$31.2b		63.3%PE216.7x
INTU IntuitUS$433.3520.8%
+US$20.0b		-27.5%PE27.6x
APP AppLovinUS$438.8911.6%
+US$15.4b		34.1%PE43.1x
PANW Palo Alto NetworksUS$156.0910.2%
+US$11.8b		-15.3%PE99.4x

Latest News

INTU
US$433.35
Intuit
7D
20.8%
1Y
-27.5%
CORZ
US$15.30
Core Scientific
7D
-14.4%
1Y
59.5%
CRM
US$196.05
Salesforce
7D
5.7%
1Y
-31.8%
NOW
US$113.19
ServiceNow
7D
10.4%
1Y
-37.5%

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.
CIFR
US$14.71
Cipher Digital
7D
-14.1%
1Y
292.3%
PLTR
US$147.22
Palantir Technologies
7D
9.7%
1Y
63.3%

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.
CRWD
US$391.42
CrowdStrike Holdings
7D
11.8%
1Y
0.3%

CrowdStrike Holdings, Inc. (CRWD): The AI Sentinel – Defending the Digital Frontier in the 2026 "Arms Race"

CrowdStrike (CRWD) enters March 2026 as the linchpin of the cybersecurity industry, currently trading at $371.98 as of the February 27 close. The stock has experienced a volatile start to the year, retreating roughly 32% from its 52-week high of $566.90 due to broader valuation re-ratings in the software sector and a recent 9% plunge following its $740 million acquisition of identity-security startup SGNL.
WULF
US$14.74
TeraWulf
7D
-16.1%
1Y
323.6%
SNPS
US$424.32
Synopsys
7D
-3.7%
1Y
-4.7%
ZM
US$73.50
Zoom Communications
7D
-16.0%
1Y
-1.9%
HUT
US$47.60
Hut 8
7D
-19.6%
1Y
239.5%
MSFT
US$403.93
Microsoft
7D
3.8%
1Y
3.9%
PANW
US$156.09
Palo Alto Networks
7D
10.2%
1Y
-15.3%

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.
IREN
US$38.85
IREN
7D
-14.5%
1Y
415.3%

Navigating the Transition Amidst Bitcoin Volatility

Since the January update, the investment thesis for IREN has entered a critical "bridge" phase. While the long-term trajectory toward becoming an AI infrastructure leader remains intact, the company is currently navigating short-term headwinds caused by a dip in Bitcoin prices and the heavy capital costs of its infrastructure pivot.
APP
US$438.89
AppLovin
7D
11.6%
1Y
34.1%

APP: Higher 2026 Revenue Outlook And Rich Margins Will Support Upside Potential

Analysts have adjusted their price target on AppLovin to $476.89 from $530.78, citing updated assumptions around revenue growth, profit margins, and future P/E multiples. What's in the News AppLovin issued new earnings guidance for the first quarter of 2026, setting expected total revenue in a range of US$1.745b to US$1.775b (Key Developments).
NBIS
US$86.80
Nebius Group
7D
-15.4%
1Y
193.1%

NBIS: Microsoft Contract And 2.5GW Power Sourcing Will Support Future Capacity

Analysts have kept their Nebius Group price target steady at $211, but are now using slightly higher discount rates and a richer future P/E of about 34x. This reflects a mix of bullish views on the Microsoft contract, cautious revenue and margin assumptions, and a wide range of initial ratings from neutral to top pick calls.