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U.S. Software Industry Analysis

UpdatedMar 25, 2026
DataAggregated Company Financials
Companies424
  • 7D-6.0%
  • 3M-24.5%
  • 1Y-11.3%
  • YTD-21.1%

Over the last 7 days, the Software industry has dropped 6.0%, driven by a pullback from Microsoft of 6.7%. On the other hand Clear Secure is actually up 11%. However, the industry is down 11% 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
Wed, 25 Mar 2026US$5.6tUS$668.3bUS$162.0b28.3x34.8x8.4x
Fri, 20 Feb 2026US$5.7tUS$660.9bUS$163.6b25.8x34.6x8.6x
Sun, 18 Jan 2026US$6.7tUS$648.9bUS$159.8b31.6x41.9x10.3x
Tue, 16 Dec 2025US$7.1tUS$645.9bUS$164.8b32.4x43.2x11x
Thu, 13 Nov 2025US$7.5tUS$640.5bUS$158.5b32.1x47.4x11.7x
Sat, 11 Oct 2025US$7.9tUS$621.4bUS$151.7b34.8x52x12.7x
Mon, 08 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.2x11.8x
Wed, 06 Aug 2025US$7.6tUS$610.7bUS$147.7b38.9x51.7x12.5x
Fri, 04 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Sun, 01 Jun 2025US$6.8tUS$594.2bUS$131.7b36.8x51.4x11.4x
Tue, 29 Apr 2025US$5.9tUS$581.3bUS$131.8b31.7x45x10.2x
Thu, 27 Mar 2025US$6.1tUS$582.2bUS$131.6b29x46.1x10.4x
Sat, 22 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Mon, 20 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.8x11.3x
Wed, 18 Dec 2024US$6.8tUS$569.1bUS$128.8b42x52.8x12x
Fri, 15 Nov 2024US$6.5tUS$566.7bUS$127.0b42.2x51.3x11.5x
Sun, 13 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Tue, 10 Sep 2024US$5.7tUS$551.3bUS$123.1b35.7x46.1x10.3x
Thu, 08 Aug 2024US$5.4tUS$547.6bUS$121.7b37x44.7x9.9x
Sat, 06 Jul 2024US$6.1tUS$530.5bUS$118.1b40.9x51.6x11.5x
Mon, 03 Jun 2024US$5.1tUS$476.0bUS$106.9b39.8x47.8x10.7x
Wed, 01 May 2024US$5.0tUS$476.8bUS$102.4b42.2x48.7x10.5x
Fri, 29 Mar 2024US$5.4tUS$465.9bUS$98.2b45.1x55.1x11.6x
Sun, 25 Feb 2024US$5.3tUS$466.5bUS$93.1b43.9x57.1x11.4x
Tue, 23 Jan 2024US$5.4tUS$486.2bUS$82.1b46.8x65.7x11.1x
Thu, 21 Dec 2023US$5.2tUS$486.1bUS$82.9b43.9x62.2x10.6x
Sat, 18 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x62x10.3x
Mon, 16 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Wed, 13 Sep 2023US$4.7tUS$476.3bUS$73.0b45x64.2x9.8x
Fri, 11 Aug 2023US$4.4tUS$473.0bUS$69.9b45.7x63.4x9.4x
Sun, 09 Jul 2023US$4.5tUS$460.7bUS$60.4b47x73.8x9.7x
Tue, 06 Jun 2023US$4.4tUS$459.8bUS$62.0b42.4x70.9x9.6x
Thu, 04 May 2023US$3.9tUS$453.6bUS$61.2b39.8x63.8x8.6x
Sat, 01 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.5x8.7x
Price to Earnings Ratio

65.5x


Total Market Cap: US$4.0tTotal Earnings: US$60.6bTotal Revenue: US$453.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.4x202420252026
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 34.8x which is lower than its 3-year average PE of 53.4x.
  • 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 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-2.29%
Tech-2.62%
Software-6.02%
Application Software-4.75%
Systems Software-6.60%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 18.0x.
    • Analysts are expecting annual earnings growth of 25.0%, which is higher than its past year's earnings growth of 18.7% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.9x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 19% 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
YOU Clear SecureUS$53.5311.3%
+US$539.2m		94.6%PE48.7x
MRLN MerlinUS$12.3236.4%
+US$425.7m		23.4%PS235.8x
HQ Horizon Quantum HoldingsUS$11.10-16.2%
US$317.4m		-0.9%n/a
NN NextNavUS$18.529.8%
+US$223.5m		37.8%PS548.6x
ADEA AdeiaUS$25.247.6%
+US$194.1m		77.4%PE24.8x

Latest News

CRCL
US$101.17
Circle Internet Group
7D
-23.5%
1Y
n/a
PANW
US$157.21
Palo Alto Networks
7D
-7.1%
1Y
-17.2%
HQ
US$11.10
Horizon Quantum Holdings
7D
-16.2%
1Y
-0.9%
HUT
US$53.25
Hut 8
7D
2.8%
1Y
289.8%
CRWD
US$392.99
CrowdStrike Holdings
7D
-9.3%
1Y
2.1%
MSFT
US$372.74
Microsoft
7D
-6.7%
1Y
-5.7%
ORCL
US$147.09
Oracle
7D
-4.9%
1Y
-4.4%

ORCL: AI Data Center Spending And Margins Will Shape Cash Generation

Oracle's analyst fair value estimate has moved from about $193.08 to $155.00 as analysts factor in lower profit margin assumptions along with stronger modeled revenue growth and generally supportive post earnings research. Analyst Commentary Street research around Oracle following the fiscal Q3 report reflects a mix of renewed confidence in the business trajectory and recalibration of expectations.
EVCM
US$10.82
EverCommerce
7D
8.1%
1Y
3.0%

EVCM: Mixed Q4 Outlook And AI Tools Will Shape Balanced Near-Term Prospects

EverCommerce's analyst-implied fair value has been revised down from about $12.39 to $10.93, as analysts weigh mixed Q4 results, a more cautious outlook for growth and margins, and recent shifts in ratings and price targets across the Street. Analyst Commentary Recent Street commentary around EverCommerce highlights a split view, with some focusing on cash generation and execution, while others concentrate on growth constraints, payments exposure, and valuation risk.
ADEA
US$25.24
Adeia
7D
7.6%
1Y
77.4%

ADEA: AMD License Resolutions Will Support Future Cash Flow Visibility

Adeia's analyst price target has been reset higher from $27.00 to $40.00, as analysts point to the new multi year license agreement with AMD, recent settlements with AMD and Disney, and fresh licensing wins with Microsoft and a semiconductor customer as key supports for their updated views. Analyst Commentary Bullish analysts are responding to Adeia's recent licensing momentum and litigation resolutions with higher price targets and reinforced confidence in the business model.
CRM
US$183.02
Salesforce
7D
-6.3%
1Y
-36.6%

CRM: AI Execution Debt-Funded Buybacks And AI Fears Will Shape Risk Balance

Analysts have kept the fair value estimate for Salesforce steady at $190, while slightly adjusting assumptions such as discount rate, revenue growth, profit margin, and future P/E to reflect mixed Q4 trends, widespread price target cuts across the Street, and increasing focus on the potential of Agentforce and AI driven offerings, alongside softer near term organic growth expectations. Analyst Commentary Street research around the latest Q4 report has turned more cautious, even as many firms still see potential in Salesforce's AI and Agentforce roadmap.
CORZ
US$16.85
Core Scientific
7D
2.6%
1Y
94.6%

CORZ: AI Hosting Shift And Lease Pipeline Will Drive Future Upside

Analysts have nudged the Core Scientific price target slightly lower, with the updated fair value estimate moving from about $26.82 to $26.40. They are weighing higher projected revenue growth and profit margins against revised P/E assumptions and recent research highlighting organic growth plans, AI hosting expansion and an evolving lease pipeline.
YOU
US$53.53
Clear Secure
7D
11.3%
1Y
94.6%
NN
US$18.52
NextNav
7D
9.8%
1Y
37.8%
APP
US$435.91
AppLovin
7D
-5.0%
1Y
25.9%

APP: Share Repurchases And Margin Outlook Will Drive Future Upside

Analysts now see higher upside for AppLovin, lifting the fair value estimate from $650.00 to $860.00 as they factor in updated assumptions for revenue growth, profit margins, and future P/E levels. What's in the News AppLovin completed a buyback tranche between October 1, 2025 and December 31, 2025, repurchasing 660,000 shares for $409.49 million, equal to 0.19% of its shares under the existing program (Key Developments).
NOW
US$104.65
ServiceNow
7D
-10.3%
1Y
-39.3%

NOW: AI Platform Adoption And Buybacks Will Drive Long Term Upside

Analysts have trimmed their fair value estimate for ServiceNow to $130.18 from $133.26, citing slightly higher discount rate assumptions, along with modest adjustments to revenue growth, profit margin, and future P/E expectations. What's in the News ServiceNow issued guidance for GAAP subscription revenue of US$3,650 million to US$3,655 million for Q1 2026 and US$15,530 million to US$15,570 million for full year 2026, giving investors a concrete view of management’s current revenue expectations (Corporate guidance).