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U.S. Software Industry Analysis
UpdatedJul 31, 2025
DataAggregated Company Financials
Companies405
- 7D1.1%
- 3M20.0%
- 1Y30.5%
- YTD18.8%
The Software industry is up 1.1% in the last week, with Microsoft up 1.5%. Meanwhile, Palo Alto Networks actually underperformed within the industry, shrinking 8.1% in the last week. This means that the industry has gained 31% over the past year. As for the next few years, earnings are expected to grow by 19% per annum.
Industry Valuation and Performance
Has the U.S. Software Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Thu, 31 Jul 2025 | US$7.6t | US$598.4b | US$131.2b | 43.9x | 57.9x | 12.7x |
| Sat, 28 Jun 2025 | US$7.3t | US$599.0b | US$131.2b | 42x | 55.5x | 12.2x |
| Mon, 26 May 2025 | US$6.6t | US$593.0b | US$131.7b | 35.3x | 50.3x | 11.2x |
| Wed, 23 Apr 2025 | US$5.3t | US$580.3b | US$131.7b | 29.6x | 40.5x | 9.2x |
| Fri, 21 Mar 2025 | US$5.9t | US$582.8b | US$131.2b | 29.7x | 45x | 10.1x |
| Sun, 16 Feb 2025 | US$6.6t | US$588.2b | US$130.3b | 42.1x | 50.6x | 11.2x |
| Tue, 14 Jan 2025 | US$6.3t | US$569.1b | US$129.3b | 38.9x | 48.4x | 11x |
| Thu, 12 Dec 2024 | US$6.7t | US$568.6b | US$128.6b | 43x | 52.2x | 11.8x |
| Sat, 09 Nov 2024 | US$6.4t | US$567.3b | US$127.0b | 40.6x | 50.3x | 11.3x |
| Mon, 07 Oct 2024 | US$6.0t | US$551.7b | US$124.1b | 38.8x | 48.1x | 10.8x |
| Wed, 04 Sep 2024 | US$5.8t | US$550.8b | US$122.1b | 37.3x | 47.8x | 10.6x |
| Fri, 02 Aug 2024 | US$5.7t | US$541.3b | US$120.1b | 39.7x | 47.6x | 10.6x |
| Sun, 30 Jun 2024 | US$6.0t | US$531.0b | US$118.1b | 40.5x | 50.5x | 11.2x |
| Tue, 28 May 2024 | US$5.4t | US$475.9b | US$105.9b | 40.6x | 50.7x | 11.3x |
| Thu, 25 Apr 2024 | US$5.2t | US$466.6b | US$98.4b | 43.2x | 52.6x | 11.1x |
| Sat, 23 Mar 2024 | US$5.5t | US$465.8b | US$98.0b | 45x | 55.8x | 11.7x |
| Mon, 19 Feb 2024 | US$5.3t | US$465.3b | US$90.9b | 42.7x | 58.3x | 11.4x |
| Wed, 17 Jan 2024 | US$5.3t | US$486.2b | US$82.2b | 46.2x | 64.1x | 10.8x |
| Fri, 15 Dec 2023 | US$5.1t | US$486.1b | US$82.9b | 48.5x | 62x | 10.6x |
| Sun, 12 Nov 2023 | US$4.8t | US$482.1b | US$79.1b | 44.3x | 61.1x | 10x |
| Tue, 10 Oct 2023 | US$4.5t | US$477.3b | US$73.4b | 45.4x | 62x | 9.5x |
| Thu, 07 Sep 2023 | US$4.6t | US$476.0b | US$72.7b | 44.7x | 63.8x | 9.7x |
| Sat, 05 Aug 2023 | US$4.5t | US$473.0b | US$68.4b | 47.4x | 65.8x | 9.5x |
| Mon, 03 Jul 2023 | US$4.5t | US$460.6b | US$62.2b | 45.3x | 72.4x | 9.8x |
| Wed, 31 May 2023 | US$4.3t | US$458.4b | US$61.6b | 41.4x | 70.3x | 9.5x |
| Fri, 28 Apr 2023 | US$4.0t | US$457.8b | US$62.2b | 42x | 64.3x | 8.7x |
| Sun, 26 Mar 2023 | US$3.8t | US$453.7b | US$59.8b | 42.3x | 63.9x | 8.4x |
| Tue, 21 Feb 2023 | US$3.6t | US$437.4b | US$58.1b | 42.9x | 61.7x | 8.2x |
| Thu, 19 Jan 2023 | US$3.3t | US$434.5b | US$60.2b | 40.1x | 54.6x | 7.6x |
| Sat, 17 Dec 2022 | US$3.3t | US$434.2b | US$61.1b | 42.3x | 54.3x | 7.6x |
| Mon, 14 Nov 2022 | US$3.4t | US$424.7b | US$62.5b | 42.9x | 54.1x | 8x |
| Wed, 12 Oct 2022 | US$3.1t | US$412.7b | US$64.6b | 36.5x | 48.5x | 7.6x |
| Fri, 09 Sep 2022 | US$3.6t | US$412.9b | US$64.9b | 43.6x | 55.4x | 8.7x |
| Sun, 07 Aug 2022 | US$4.1t | US$411.7b | US$68.5b | 44.9x | 59.5x | 9.9x |
Price to Earnings Ratio
59.5x
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 12.7x.
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 Market | -0.35% | |
| Tech | 1.56% | |
| Software | 1.06% | |
| Systems Software | 1.31% | |
| Application Software | 0.49% | |
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 27.8%, which is higher than its past year's earnings growth of 20.1% 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 38.5x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings growth rate of 20% per year.
- 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MSFT Microsoft | US$513.24 | 1.5% +US$54.8b | 22.7% | PE39.5x | |
| ORCL Oracle | US$250.60 | 3.6% +US$24.4b | 79.7% | PE56.6x | |
| CDNS Cadence Design Systems | US$371.03 | 13.7% +US$12.2b | 38.6% | PE100.1x | |
| PLTR Palantir Technologies | US$158.61 | 2.6% +US$9.4b | 489.8% | PE655.9x | |
| INTU Intuit | US$807.39 | 4.0% +US$8.8b | 24.7% | PE64.9x |
