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U.S. Software Industry Analysis

UpdatedAug 31, 2025
DataAggregated Company Financials
Companies411
  • 7D-0.03%
  • 3M7.7%
  • 1Y25.6%
  • YTD15.1%

Over the last 7 days, the Software industry has remained flat, although notably AppLovin gained 8.4%. As for the the longer term, the industry is up 26% over the past 12 months. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Mon, 10 Oct 2022US$3.2tUS$412.7bUS$64.6b39.4x50.1x7.8x
Wed, 07 Sep 2022US$3.5tUS$412.7bUS$65.0b43x53.7x8.5x
Price to Earnings Ratio

53.7x


Total Market Cap: US$3.5tTotal Earnings: US$65.0bTotal Revenue: US$412.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.6x202320242025
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 49.0x which is lower than its 3-year average PE of 55.6x.
  • The 3-year average PS ratio of 10.1x is lower than the industry's current PS ratio of 12.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 32% 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 Market0.0096%
Tech0.099%
Software-0.03%
Application Software0.82%
Systems Software-0.41%
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 24.4%, which is higher than its past year's earnings growth of 20.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 38.8x.
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 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
APP AppLovinUS$478.598.4%
+US$12.5b		415.3%PE64.4x
CRM SalesforceUS$256.253.2%
+US$7.6b		1.3%PE39.5x
NOW ServiceNowUS$917.463.5%
+US$6.4b		7.3%PE114.6x
ADSK AutodeskUS$314.708.4%
+US$5.2b		21.8%PE64.6x
PANW Palo Alto NetworksUS$190.522.5%
+US$3.3b		5.1%PE112.4x

Latest News

IREN
US$26.48
IREN
7D
23.6%
1Y
234.8%
ADSK
US$314.70
Autodesk
7D
8.4%
1Y
21.8%

Investments In Cloud And AI Will Expand Future Customer Ecosystem

Driven by Autodesk’s stronger-than-expected Q2 results, upgraded guidance, long-term margin expansion targets, and improved revenue prospects—partially offset by macro and margin model concerns—the consensus analyst price target has increased from $342.07 to $356.55. Analyst Commentary Stronger-than-expected fiscal Q2 results and upgraded full-year (FY26) guidance, with revenue growth accelerating and beats across key operating metrics.
FICO
US$1,521.64
Fair Isaac
7D
7.5%
1Y
-12.1%
APP
US$478.59
AppLovin
7D
8.4%
1Y
415.3%
BMNR
US$43.62
Bitmine Immersion Technologies
7D
-18.5%
1Y
277.3%
ORCL
US$226.13
Oracle
7D
-4.3%
1Y
60.0%
WDAY
US$230.82
Workday
7D
4.3%
1Y
-12.3%

AI Expansion And Efficiency Measures Will Strengthen Future Performance

Workday’s consensus price target has been revised downward to $280.19 as analysts cite tepid organic growth, mixed quarter indicators, increasing competition, and persistent sector headwinds, despite continued profitability improvements. Analyst Commentary Q2 results generally exceeded expectations on revenue and margin, but organic growth guidance was maintained, with revenue outlook lifts mainly attributed to the Paradox acquisition rather than core business acceleration.
FIG
US$70.28
Figma
7D
-9.1%
1Y
n/a

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MSFT
US$506.69
Microsoft
7D
-0.1%
1Y
21.5%
NOW
US$917.46
ServiceNow
7D
3.5%
1Y
7.3%
PLTR
US$156.71
Palantir Technologies
7D
-1.3%
1Y
397.8%
ROP
US$526.31
Roper Technologies
7D
-2.0%
1Y
-5.1%
ADBE
US$356.70
Adobe
7D
-1.5%
1Y
-37.9%
CRM
US$256.25
Salesforce
7D
3.2%
1Y
1.3%
PANW
US$190.52
Palo Alto Networks
7D
2.5%
1Y
5.1%
MSTR
US$334.41
Strategy
7D
-6.6%
1Y
152.5%

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