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U.S. Software Industry Analysis

UpdatedMar 08, 2026
DataAggregated Company Financials
Companies423
  • 7D6.2%
  • 3M-19.1%
  • 1Y-1.5%
  • YTD-14.3%

In the last week, the Software industry is up 6.2%, with Microsoft up 4.1%. During this same period, the IREN underperformed, falling 10%. Despite this gain, the industry's performance has been flat over the past year. 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
Sun, 08 Mar 2026US$5.9tUS$665.5bUS$160.9b27x36.8x8.9x
Tue, 03 Feb 2026US$6.2tUS$660.6bUS$174.1b27.7x35.4x9.3x
Thu, 01 Jan 2026US$7.2tUS$645.4bUS$164.8b31.7x43.4x11.1x
Sat, 29 Nov 2025US$7.1tUS$640.4bUS$161.2b31.8x44x11.1x
Mon, 27 Oct 2025US$7.9tUS$621.4bUS$151.9b33.3x51.9x12.7x
Wed, 24 Sep 2025US$8.0tUS$620.8bUS$151.7b36.2x52.4x12.8x
Fri, 22 Aug 2025US$7.3tUS$614.8bUS$150.1b35.4x48.8x11.9x
Sun, 20 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.3x12.6x
Tue, 17 Jun 2025US$7.0tUS$598.9bUS$130.9b41.5x53.8x11.7x
Thu, 15 May 2025US$6.7tUS$590.9bUS$131.0b32.9x51.1x11.3x
Sat, 12 Apr 2025US$5.6tUS$581.3bUS$131.8b29.3x42.4x9.6x
Mon, 10 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.1x10.3x
Wed, 05 Feb 2025US$6.4tUS$585.8bUS$132.3b42.1x48.6x11x
Fri, 03 Jan 2025US$6.4tUS$569.1bUS$128.9b39.9x49.4x11.2x
Sun, 01 Dec 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Tue, 29 Oct 2024US$6.1tUS$552.6bUS$124.3b38.2x49.3x11.1x
Thu, 26 Sep 2024US$6.0tUS$552.4bUS$124.0b38x48.7x10.9x
Sat, 24 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.6x10.5x
Mon, 22 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Wed, 19 Jun 2024US$5.9tUS$531.3bUS$118.1b39.6x49.7x11x
Fri, 17 May 2024US$5.4tUS$474.1bUS$104.9b44.1x51.1x11.3x
Sun, 14 Apr 2024US$5.4tUS$466.3bUS$98.4b41.9x55x11.6x
Tue, 12 Mar 2024US$5.3tUS$470.2bUS$98.5b46.2x54.1x11.3x
Thu, 08 Feb 2024US$5.3tUS$463.9bUS$89.8b44.2x58.8x11.4x
Sat, 06 Jan 2024US$5.0tUS$486.2bUS$82.8b45.1x60.3x10.3x
Mon, 04 Dec 2023US$5.1tUS$485.3bUS$81.9b46.1x62.1x10.5x
Wed, 01 Nov 2023US$4.5tUS$484.8bUS$79.0b42.3x57.2x9.3x
Fri, 29 Sep 2023US$4.4tUS$477.4bUS$73.2b44.7x59.7x9.2x
Sun, 27 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Tue, 25 Jul 2023US$4.6tUS$460.9bUS$60.2b48.3x76.7x10x
Thu, 22 Jun 2023US$4.4tUS$460.5bUS$62.3b43.7x70.8x9.6x
Sat, 20 May 2023US$4.2tUS$457.1bUS$61.1b39.9x68.1x9.1x
Mon, 17 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Wed, 15 Mar 2023US$3.6tUS$453.7bUS$60.0b42.3x59.2x7.8x
Price to Earnings Ratio

59.2x


Total Market Cap: US$3.6tTotal Earnings: US$60.0bTotal Revenue: US$453.7bTotal 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 36.8x 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 8.9x.
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-2.24%
Tech-0.39%
Software6.21%
Application Software8.79%
Systems Software5.07%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 12.8x.
    • Analysts are expecting annual earnings growth of 24.5%, which is higher than its past year's earnings growth of 20.3% 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 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 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$408.964.1%
+US$120.4b		4.0%PE25.5x
PLTR Palantir TechnologiesUS$157.1614.6%
+US$47.8b		85.1%PE231.3x
APP AppLovinUS$502.1415.5%
+US$22.7b		85.6%PE49.3x
ORCL OracleUS$152.965.2%
+US$21.7b		-1.4%PE28.5x
INTU IntuitUS$481.1717.6%
+US$20.0b		-21.1%PE30.7x

Latest News

MSFT
US$408.96
Microsoft
7D
4.1%
1Y
4.0%
NOW
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ServiceNow
7D
15.1%
1Y
-26.9%
CIFR
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Cipher Digital
7D
-12.7%
1Y
250.1%
APP
US$502.14
AppLovin
7D
15.5%
1Y
85.6%
INTU
US$481.17
Intuit
7D
17.6%
1Y
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HUT
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Hut 8
7D
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1Y
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WULF
US$13.75
TeraWulf
7D
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1Y
281.9%

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CORZ
US$14.86
Core Scientific
7D
-12.4%
1Y
91.0%

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PANW
US$165.05
Palo Alto Networks
7D
10.8%
1Y
-8.8%

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ORCL
US$152.96
Oracle
7D
5.2%
1Y
-1.4%
CRWD
US$428.99
CrowdStrike Holdings
7D
15.3%
1Y
28.6%

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RIOT
US$14.17
Riot Platforms
7D
-13.0%
1Y
69.2%

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IREN
US$36.70
IREN
7D
-10.4%
1Y
376.6%

IREN: AI Infrastructure Expansion And Microsoft Contract Will Drive Transformative Multi Year Upside

Analysts have trimmed their average price target on IREN by $5.54 to reflect a lower fair value estimate of $79.31, citing revised assumptions around growth, profitability and a very large projected future P/E multiple, even as recent research highlights IREN's exposure to AI infrastructure and its sizable contract with Microsoft. Analyst Commentary Recent research on IREN highlights a mix of optimism around its AI infrastructure exposure and caution around valuation and execution risk, especially in light of the large projected future P/E multiple embedded in some models.
CDNS
US$296.94
Cadence Design Systems
7D
-1.5%
1Y
22.1%

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Analysts trimmed their fair value estimate for Cadence Design Systems from about $317.59 to $310.77, reflecting lower valuation multiples even as they factor in higher revenue growth, stronger profit margins and updated P/E assumptions supported by recent earnings beats, longer term guidance and continued AI related demand. Analyst Commentary Recent Street research on Cadence Design Systems points to a mixed setup for investors, with several bearish analysts trimming price targets even as they acknowledge solid execution and AI related demand.
PONY
US$12.48
Pony AI
7D
-13.0%
1Y
-17.9%
PLTR
US$157.16
Palantir Technologies
7D
14.6%
1Y
85.1%

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