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U.S. Software Industry Analysis

UpdatedJul 22, 2025
DataAggregated Company Financials
Companies404
  • 7D1.9%
  • 3M36.1%
  • 1Y24.9%
  • YTD15.9%

Over the last 7 days, the Software industry has risen 1.9%, driven by gains from Microsoft of 1.4%. During this same period, the MicroStrategy underperformed, falling 5.5%. This means that the industry has gained 25% over the past year. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 22 Jul 2025US$7.5tUS$596.3bUS$130.8b43.6x57.3x12.6x
Thu, 19 Jun 2025US$7.1tUS$598.9bUS$131.1b41x53.9x11.8x
Sat, 17 May 2025US$6.7tUS$591.1bUS$131.4b34.9x51.1x11.4x
Mon, 14 Apr 2025US$5.7tUS$581.3bUS$131.8b29.3x42.9x9.7x
Wed, 12 Mar 2025US$5.7tUS$583.2bUS$130.1b30.6x43.9x9.8x
Fri, 07 Feb 2025US$6.5tUS$586.1bUS$131.8b41.9x49.6x11.1x
Sun, 05 Jan 2025US$6.4tUS$569.1bUS$129.0b40.3x49.9x11.3x
Tue, 03 Dec 2024US$6.5tUS$566.8bUS$127.5b42.2x51.2x11.5x
Thu, 31 Oct 2024US$6.2tUS$552.9bUS$124.3b38.4x49.9x11.2x
Sat, 28 Sep 2024US$6.1tUS$552.4bUS$124.0b38.7x48.8x11x
Mon, 26 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.8x10.6x
Wed, 24 Jul 2024US$5.9tUS$531.1bUS$118.4b41.1x49.8x11.1x
Fri, 21 Jun 2024US$5.9tUS$531.3bUS$118.0b40.2x49.7x11x
Sun, 19 May 2024US$5.3tUS$474.3bUS$104.9b45.1x51x11.3x
Tue, 16 Apr 2024US$5.3tUS$466.3bUS$98.4b41.1x54.2x11.4x
Thu, 14 Mar 2024US$5.4tUS$470.1bUS$98.5b46.6x55.2x11.6x
Sat, 10 Feb 2024US$5.5tUS$464.2bUS$90.0b42.7x61.1x11.8x
Mon, 08 Jan 2024US$5.0tUS$486.2bUS$82.8b45.1x60.3x10.3x
Wed, 06 Dec 2023US$5.0tUS$485.3bUS$82.3b44.7x61x10.3x
Fri, 03 Nov 2023US$4.6tUS$485.3bUS$79.7b43.3x57.5x9.4x
Sun, 01 Oct 2023US$4.4tUS$477.3bUS$73.4b44.8x59.9x9.2x
Tue, 29 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Thu, 27 Jul 2023US$4.6tUS$465.5bUS$63.6b47.9x71.9x9.8x
Sat, 24 Jun 2023US$4.4tUS$460.5bUS$62.3b44x70.8x9.6x
Mon, 22 May 2023US$4.2tUS$457.4bUS$61.0b39.9x68.1x9.1x
Wed, 19 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x65x8.7x
Fri, 17 Mar 2023US$3.8tUS$453.7bUS$60.3b42.1x62.7x8.3x
Sun, 12 Feb 2023US$3.6tUS$437.0bUS$57.8b42.8x62.6x8.3x
Tue, 10 Jan 2023US$3.2tUS$434.4bUS$60.2b39.9x52.9x7.3x
Thu, 08 Dec 2022US$3.3tUS$433.6bUS$61.0b43.4x54x7.6x
Sat, 05 Nov 2022US$3.0tUS$421.6bUS$62.7b38.8x47.8x7.1x
Mon, 03 Oct 2022US$3.2tUS$412.2bUS$64.7b38.9x49.2x7.7x
Wed, 31 Aug 2022US$3.6tUS$412.2bUS$65.2b45x55.9x8.8x
Fri, 29 Jul 2022US$3.7tUS$414.9bUS$68.2b40.2x54.4x8.9x
Price to Earnings Ratio

54.4x


Total Market Cap: US$3.7tTotal Earnings: US$68.2bTotal Revenue: US$414.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.8x202320242025
Current Industry PE
  • Investors are relatively neutral on the American Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 55.8x.
  • The 3-year average PS ratio of 10.0x is lower than the industry's current PS ratio of 12.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 24% per year over the last three years.
  • Revenues for these companies have grown 13% 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 Market0.78%
Tech2.64%
Software1.91%
Systems Software2.04%
Application Software1.62%
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 28.0%, which is higher than its past year's earnings growth of 24.9% per year.
  • Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 38.4x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 28% 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
MSFT MicrosoftUS$510.061.4%
+US$52.3b		15.2%PE39.2x
ORCL OracleUS$243.546.2%
+US$40.1b		73.7%PE55x
SNPS SynopsysUS$591.467.6%
+US$24.2b		0.6%PE81.1x
PLTR Palantir TechnologiesUS$151.791.8%
+US$6.2b		433.3%PE627.7x
PANW Palo Alto NetworksUS$199.884.8%
+US$6.1b		19.8%PE107.7x

Latest News

FTNT
US$106.94
Fortinet
7D
3.9%
1Y
83.0%
PANW
US$199.88
Palo Alto Networks
7D
4.8%
1Y
19.8%
NOW
US$959.91
ServiceNow
7D
-0.2%
1Y
26.9%

The Return Trends At ServiceNow (NYSE:NOW) Look Promising

Jul 21
The Return Trends At ServiceNow (NYSE:NOW) Look Promising
MSFT
US$510.06
Microsoft
7D
1.4%
1Y
15.2%
author-image

From Legacy to Cloud: A Valuation of Microsoft’s Evolving Business Model

United States: 50.87%1-Year Revenue Growth = 16.83%
SNPS
US$591.46
Synopsys
7D
7.6%
1Y
0.6%
CDNS
US$316.32
Cadence Design Systems
7D
-0.4%
1Y
10.2%
FICO
US$1,531.09
Fair Isaac
7D
-1.0%
1Y
-6.2%
MSTR
US$426.28
MicroStrategy
7D
-5.5%
1Y
136.8%
PLTR
US$151.79
Palantir Technologies
7D
1.8%
1Y
433.3%
CWAN
US$21.12
Clearwater Analytics Holdings
7D
-4.3%
1Y
5.5%
MNDY
US$284.15
monday.com
7D
-2.3%
1Y
20.6%
ORCL
US$243.54
Oracle
7D
6.2%
1Y
73.7%
INTU
US$763.69
Intuit
7D
1.5%
1Y
18.5%
HOLO
US$5.19
MicroCloud Hologram
7D
-11.7%
1Y
-98.6%
ZS
US$288.43
Zscaler
7D
-0.9%
1Y
53.1%
APP
US$366.17
AppLovin
7D
2.9%
1Y
339.9%