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

U.S. Software Industry Analysis

UpdatedApr 14, 2026
DataAggregated Company Financials
Companies429
  • 7D0.5%
  • 3M-21.3%
  • 1Y-5.5%
  • YTD-21.1%

The Software is pretty flat in the last 7 days, but Microsoft has stood out, gaining 3.1%. As for the longer term, the industry has declined 5.5% in the last year. 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
Wed, 15 Apr 2026US$5.2tUS$667.8bUS$161.5b28x32.2x7.8x
Fri, 13 Mar 2026US$5.8tUS$668.7bUS$161.3b26.8x36.1x8.7x
Sun, 08 Feb 2026US$5.7tUS$662.4bUS$162.0b26.9x35x8.6x
Tue, 06 Jan 2026US$6.9tUS$645.3bUS$164.7b32.3x42.1x10.8x
Thu, 04 Dec 2025US$7.1tUS$640.7bUS$161.1b31.7x43.8x11x
Sat, 01 Nov 2025US$7.8tUS$636.8bUS$158.3b34.7x49.3x12.2x
Mon, 29 Sep 2025US$7.7tUS$620.9bUS$151.9b36x51x12.5x
Wed, 27 Aug 2025US$7.3tUS$615.8bUS$150.8b35x48.6x11.9x
Fri, 25 Jul 2025US$7.5tUS$597.2bUS$130.9b42.7x57.1x12.5x
Sun, 22 Jun 2025US$7.1tUS$599.0bUS$131.1b40.7x53.9x11.8x
Tue, 20 May 2025US$6.7tUS$591.1bUS$131.4b36.1x51.3x11.4x
Thu, 17 Apr 2025US$5.7tUS$580.5bUS$131.7b29.9x43.3x9.8x
Sat, 15 Mar 2025US$5.7tUS$582.9bUS$131.3b28.7x43.3x9.7x
Mon, 10 Feb 2025US$6.5tUS$586.2bUS$132.4b43.2x49x11.1x
Wed, 08 Jan 2025US$6.5tUS$569.1bUS$129.0b38.4x50.2x11.4x
Fri, 06 Dec 2024US$6.8tUS$566.4bUS$127.7b42.8x53.2x12x
Sun, 03 Nov 2024US$6.0tUS$561.9bUS$126.3b39x47.5x10.7x
Tue, 01 Oct 2024US$6.0tUS$552.4bUS$124.0b38.7x48.8x10.9x
Thu, 29 Aug 2024US$5.8tUS$550.3bUS$121.8b36.8x47.6x10.5x
Sat, 27 Jul 2024US$5.7tUS$532.0bUS$117.8b40.7x48.2x10.7x
Mon, 24 Jun 2024US$5.9tUS$531.3bUS$118.0b40.6x50.1x11.1x
Wed, 22 May 2024US$5.4tUS$474.6bUS$105.4b43x51.3x11.4x
Fri, 19 Apr 2024US$5.1tUS$466.6bUS$98.4b42x51.9x10.9x
Sun, 17 Mar 2024US$5.3tUS$471.0bUS$98.1b45.8x54.4x11.3x
Tue, 13 Feb 2024US$5.4tUS$464.2bUS$90.0b41.8x60.3x11.7x
Thu, 11 Jan 2024US$5.1tUS$486.2bUS$82.2b45.5x62.4x10.5x
Sat, 09 Dec 2023US$5.0tUS$485.6bUS$82.5b47.1x60.8x10.3x
Mon, 06 Nov 2023US$4.7tUS$481.2bUS$79.0b43.3x58.9x9.7x
Wed, 04 Oct 2023US$4.4tUS$477.3bUS$73.4b44.2x60.6x9.3x
Fri, 01 Sep 2023US$4.6tUS$475.5bUS$72.4b44.9x63.3x9.6x
Sun, 30 Jul 2023US$4.6tUS$466.2bUS$64.9b47.7x70.3x9.8x
Tue, 27 Jun 2023US$4.4tUS$460.6bUS$62.3b43.8x69.9x9.4x
Thu, 25 May 2023US$4.1tUS$458.2bUS$61.4b40.5x67x9x
Sat, 22 Apr 2023US$3.9tUS$453.7bUS$60.6b42.4x64.4x8.6x
Price to Earnings Ratio

64.4x


Total Market Cap: US$3.9tTotal Earnings: US$60.6bTotal Revenue: US$453.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 52.7x202420252026
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 32.2x which is lower than its 3-year average PE of 52.8x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 7.8x.
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 Market4.25%
Tech6.48%
Software0.52%
Systems Software2.56%
Application Software-4.00%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 24.9x.
    • Analysts are expecting annual earnings growth of 25.5%, 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 39.7x.
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 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
MSFT MicrosoftUS$393.015.6%
+US$153.8b		1.9%PE24.5x
ORCL OracleUS$163.0013.9%
+US$57.0b		21.7%PE29x
NBIS Nebius GroupUS$161.9437.9%
+US$11.3b		659.2%PE1412.9x
APP AppLovinUS$433.625.6%
+US$7.8b		76.6%PE42.6x
MSTR StrategyUS$137.4211.1%
+US$4.7b		-55.8%PS99.7x

Latest News

MSTR
US$137.42
Strategy
7D
11.1%
1Y
-55.8%
PLTR
US$135.69
Palantir Technologies
7D
-9.6%
1Y
37.9%
ORCL
US$163.00
Oracle
7D
13.9%
1Y
21.7%
PANW
US$161.59
Palo Alto Networks
7D
-4.9%
1Y
-6.9%
APP
US$433.62
AppLovin
7D
5.6%
1Y
76.6%

AppLovin: Some KPIs Could Be Better, But A Low Valuation Makes It A Buy

Apr 14
NBIS
US$161.94
Nebius Group
7D
37.9%
1Y
659.2%

Nebius: The Compute Bottleneck Is Real

Apr 14
SNPS
US$418.80
Synopsys
7D
5.3%
1Y
-1.6%

Synopsys: A Derisked Growth Story With Ansys Driving The Next Leg

Apr 14
IREN
US$47.36
IREN
7D
32.5%
1Y
769.0%
MSFT
US$393.01
Microsoft
7D
5.6%
1Y
1.9%

Microsoft Could Reach $600 Over the Next Five Years

Microsoft has a strong path to $600 over the next five years because it combines durable growth, elite profitability, and a leadership position in AI, cloud, and enterprise software. Its recurring revenue base makes earnings more predictable, while Azure, Microsoft 365, and its AI products give it multiple ways to compound value over time.
NOW
US$87.79
ServiceNow
7D
-12.7%
1Y
-46.2%

ServiceNow: Still Trading Richly Above Peers, Correction Is Far From Over

Apr 13
INTU
US$366.80
Intuit
7D
-10.6%
1Y
-38.3%
FTNT
US$78.69
Fortinet
7D
-6.0%
1Y
-20.7%
CRWD
US$398.46
CrowdStrike Holdings
7D
-5.9%
1Y
1.4%

CrowdStrike: Anthropic's Project Glasswing Is A Game Changer

Apr 09
ZS
US$122.68
Zscaler
7D
-13.7%
1Y
-40.1%

Zscaler: Time To Upgrade Amidst Pessimistic Software Sentiment

Apr 08
CRM
US$171.31
Salesforce
7D
-6.4%
1Y
-32.8%

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

Analysts have reduced their Salesforce price targets, with several cuts of $50 to $100 or more, reflecting softer organic growth expectations, sector-wide multiple compression, and increased scrutiny of how quickly Agentforce-driven demand can translate into faster revenue growth. Analyst Commentary Recent research highlights a split view on Salesforce, with many firms cutting price targets while still acknowledging potential upside from Agentforce and other AI driven products.
CDNS
US$292.37
Cadence Design Systems
7D
4.6%
1Y
10.6%

CDNS: AI Software Demand And NVIDIA Partnership Will Drive Shares Higher

Analysts have trimmed the blended price target on Cadence Design Systems by about $12 to reflect lower applied P/E multiples amid broader software volatility, even as they highlight solid Q4 results, raised long term EPS estimates, and ongoing AI related demand as key supports for the updated outlook. Analyst Commentary Recent research points to a mixed but generally constructive view on Cadence Design Systems, with analysts adjusting price targets to account for software sector volatility while still pointing to execution on earnings and demand as support for the equity story.