Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Software Industry Analysis

UpdatedApr 22, 2026
DataAggregated Company Financials
Companies431
  • 7D8.4%
  • 3M-6.6%
  • 1Y8.9%
  • YTD-12.8%

Over the last 7 days, the Software industry has risen 8.4%, driven by gains from Microsoft of 7.9%. In the last 12 months, the industry was up 8.9%. 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
Thu, 23 Apr 2026US$5.9tUS$667.9bUS$157.1b30.6x37.8x8.9x
Sat, 21 Mar 2026US$5.6tUS$668.3bUS$166.9b29.4x33.6x8.4x
Mon, 16 Feb 2026US$5.7tUS$660.4bUS$164.0b26.4x34.7x8.6x
Wed, 14 Jan 2026US$7.1tUS$648.9bUS$165.0b32.9x42.8x10.9x
Fri, 12 Dec 2025US$7.2tUS$645.3bUS$165.5b32.7x43.8x11.2x
Sun, 09 Nov 2025US$7.4tUS$640.0bUS$159.1b33.5x46.5x11.6x
Tue, 07 Oct 2025US$7.8tUS$621.4bUS$151.8b36.1x51.2x12.5x
Thu, 04 Sep 2025US$7.3tUS$616.8bUS$150.8b36.6x48.7x11.9x
Sat, 02 Aug 2025US$7.7tUS$611.0bUS$147.0b39.7x52.6x12.7x
Mon, 30 Jun 2025US$7.2tUS$599.0bUS$131.2b42x55.1x12.1x
Wed, 28 May 2025US$6.6tUS$593.0bUS$131.7b36.4x50.2x11.2x
Fri, 25 Apr 2025US$5.6tUS$581.1bUS$131.9b31.4x42.5x9.7x
Sun, 23 Mar 2025US$5.9tUS$582.8bUS$131.2b29.5x45.2x10.2x
Tue, 18 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Thu, 16 Jan 2025US$6.2tUS$569.1bUS$129.3b40x48.2x11x
Sat, 14 Dec 2024US$6.8tUS$568.6bUS$128.6b41.7x52.8x11.9x
Mon, 11 Nov 2024US$6.4tUS$567.0bUS$127.1b40.6x50.4x11.3x
Wed, 09 Oct 2024US$5.9tUS$551.7bUS$124.1b39.5x47.4x10.7x
Fri, 06 Sep 2024US$5.7tUS$551.1bUS$122.2b37.5x46.7x10.3x
Sun, 04 Aug 2024US$5.5tUS$541.8bUS$120.2b38.2x45.8x10.2x
Tue, 02 Jul 2024US$6.0tUS$531.0bUS$118.1b41x50.5x11.2x
Thu, 30 May 2024US$5.3tUS$475.0bUS$105.6b40.3x50.6x11.3x
Sat, 27 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Mon, 25 Mar 2024US$5.5tUS$465.8bUS$98.0b45x55.8x11.7x
Wed, 21 Feb 2024US$5.3tUS$465.3bUS$90.9b45.1x57.9x11.3x
Fri, 19 Jan 2024US$5.3tUS$486.2bUS$82.1b45.7x64.6x10.9x
Sun, 17 Dec 2023US$5.1tUS$486.1bUS$82.9b47.3x61.6x10.5x
Tue, 14 Nov 2023US$4.8tUS$482.1bUS$79.1b44.9x61x10x
Thu, 12 Oct 2023US$4.6tUS$477.3bUS$73.7b45.3x62.3x9.6x
Sat, 09 Sep 2023US$4.6tUS$476.3bUS$73.0b44.8x63.2x9.7x
Mon, 07 Aug 2023US$4.5tUS$473.0bUS$68.4b47.4x65.9x9.5x
Wed, 05 Jul 2023US$4.5tUS$460.7bUS$60.4b47.8x74.3x9.7x
Fri, 02 Jun 2023US$4.4tUS$459.3bUS$61.9b42.1x70.5x9.5x
Sun, 30 Apr 2023US$4.0tUS$457.3bUS$62.5b42.2x64.2x8.8x
Price to Earnings Ratio

64.2x


Total Market Cap: US$4.0tTotal Earnings: US$62.5bTotal Revenue: US$457.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 52.5x202420252026
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 37.8x which is lower than its 3-year average PE of 52.6x.
  • 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 36% 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 Market1.31%
Tech4.29%
Software8.38%
Systems Software8.46%
Application Software8.18%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 27.8x.
    • Analysts are expecting annual earnings growth of 26.1%, which is higher than its past year's earnings growth of 18.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.6x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% over the next 5 years.
  • This is better than its past earnings growth rate of 18% 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$432.925.3%
+US$161.1b		15.6%PE27x
ORCL OracleUS$187.5010.4%
+US$50.9b		42.7%PE33.3x
PLTR Palantir TechnologiesUS$152.627.4%
+US$25.0b		51.4%PE224.6x
CRWD CrowdStrike HoldingsUS$466.6813.5%
+US$14.5b		21.0%PS24.7x
PANW Palo Alto NetworksUS$181.2010.4%
+US$13.9b		7.7%PE114.6x

Latest News

CRWD
US$466.68
CrowdStrike Holdings
7D
13.5%
1Y
21.0%
FIG
US$19.17
Figma
7D
-5.8%
1Y
n/a
PLTR
US$152.62
Palantir Technologies
7D
7.4%
1Y
51.4%
PEGA
US$37.48
Pegasystems
7D
-12.3%
1Y
-15.3%
NBIS
US$156.14
Nebius Group
7D
-6.4%
1Y
580.1%

Nebius: The Profit Inflection Point

Apr 22
NOW
US$103.07
ServiceNow
7D
9.4%
1Y
-36.6%
MSTR
US$179.36
Strategy
7D
25.0%
1Y
-48.1%
ORCL
US$187.50
Oracle
7D
10.4%
1Y
42.7%

ORCL: AI Data Center Expansion And Financing Will Drive Future Upside

Analysts have trimmed the Oracle price target by about $11 to reflect slightly higher discounting, lower projected profit margins and a modestly lower future P/E multiple, even as revenue growth expectations are supported by recent Q3 beats, raised long term revenue goals and broadly constructive research commentary. Analyst Commentary Street research on Oracle clusters around strong Q3 execution, rising long term cloud ambitions and a reset in valuation assumptions after a sharp selloff.
CRM
US$189.80
Salesforce
7D
6.9%
1Y
-24.2%

CRM: Debt-Funded Buybacks Will Support AI Execution And Margin Discipline

The analyst price target for Salesforce has been reduced by about $50 to reflect slightly lower modeled fair value, a higher discount rate, more conservative assumptions on revenue growth and profit margins, and a trimmed future P/E multiple, in line with a broad set of recent price target cuts that cite softer organic growth, sector multiple compression, and a wait for clearer payoff from Agentforce-driven AI products. Analyst Commentary Street research around Salesforce has shifted toward tighter valuation assumptions, but it also highlights a set of execution and product drivers that bullish analysts see as underappreciated.
CDNS
US$331.61
Cadence Design Systems
7D
9.0%
1Y
24.9%
MSFT
US$432.92
Microsoft
7D
5.3%
1Y
15.6%

MSFT: AI Infrastructure Self Sufficiency And Heavy Data Center Commitments Will Sustain Leadership

Microsoft's analyst fair value estimate has been adjusted slightly lower to $579.57, as analysts factor in updated price targets that reflect a mix of reduced P/E assumptions, along with expectations for revenue growth and profit margins tied to AI and cloud spending. Analyst Commentary Recent Street research on Microsoft reflects a mix of optimism and caution as analysts recalibrate price targets and ratings around AI, cloud spending, and capital intensity.
CRCL
US$104.36
Circle Internet Group
7D
-1.1%
1Y
n/a
FICO
US$970.17
Fair Isaac
7D
-5.9%
1Y
-49.6%
AUR
US$5.17
Aurora Innovation
7D
-2.5%
1Y
-19.8%
PANW
US$181.20
Palo Alto Networks
7D
10.4%
1Y
7.7%
MTC
US$6.35
MMTec
7D
-29.9%
1Y
433.6%