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U.S. Software Industry Analysis

UpdatedAug 02, 2026
DataAggregated Company Financials
Companies423
  • 7D14.3%
  • 3M7.1%
  • 1Y-15.7%
  • YTD-6.8%

Over the last 7 days, the Software industry has risen 14%, driven by gains from Microsoft of 22%. During this same period, the Fair Isaac underperformed, falling 9.2%. However, the industry is down 16% over the past year. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 02 Aug 2026US$6.4tUS$715.0bUS$147.2b29x43.6x9x
Tue, 30 Jun 2026US$5.6tUS$697.7bUS$156.3b27.2x35.9x8x
Thu, 28 May 2026US$6.2tUS$687.3bUS$155.3b29.2x39.9x9x
Sat, 25 Apr 2026US$5.9tUS$668.8bUS$157.2b30.5x37.5x8.8x
Mon, 23 Mar 2026US$5.6tUS$668.3bUS$162.0b29.4x34.4x8.3x
Wed, 18 Feb 2026US$5.7tUS$660.3bUS$164.1b25.4x34.7x8.6x
Fri, 16 Jan 2026US$6.8tUS$648.9bUS$159.8b32.4x42.5x10.5x
Sun, 14 Dec 2025US$7.1tUS$645.9bUS$164.8b32.9x43.2x11x
Tue, 11 Nov 2025US$7.5tUS$640.0bUS$159.1b32.5x47.2x11.7x
Thu, 09 Oct 2025US$7.8tUS$621.4bUS$151.8b36x51.6x12.6x
Sat, 06 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.4x11.9x
Mon, 04 Aug 2025US$7.6tUS$611.0bUS$146.9b39.7x51.4x12.4x
Wed, 02 Jul 2025US$7.2tUS$599.0bUS$131.2b42.2x55.1x12.1x
Fri, 30 May 2025US$6.7tUS$594.0bUS$131.7b36.4x51.1x11.3x
Sun, 27 Apr 2025US$5.9tUS$581.1bUS$131.9b32x45x10.2x
Tue, 25 Mar 2025US$5.9tUS$582.9bUS$131.1b29.9x45.3x10.2x
Thu, 20 Feb 2025US$6.6tUS$588.2bUS$130.0b42.2x50.8x11.2x
Sat, 18 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.5x11.3x
Mon, 16 Dec 2024US$6.7tUS$569.1bUS$128.8b41.2x51.8x11.7x
Wed, 13 Nov 2024US$6.4tUS$567.1bUS$123.7b41.2x52.1x11.4x
Fri, 11 Oct 2024US$6.0tUS$551.6bUS$124.1b37.7x48.7x10.9x
Sun, 08 Sep 2024US$5.6tUS$551.3bUS$123.1b34.9x45.6x10.2x
Tue, 06 Aug 2024US$5.5tUS$541.8bUS$120.2b37x45.8x10.2x
Thu, 04 Jul 2024US$6.1tUS$530.5bUS$118.1b41.3x51.6x11.5x
Sat, 01 Jun 2024US$5.1tUS$475.9bUS$106.9b39.8x47.6x10.7x
Mon, 29 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Wed, 27 Mar 2024US$5.4tUS$465.8bUS$98.0b45.1x55.4x11.7x
Fri, 23 Feb 2024US$5.2tUS$466.1bUS$92.8b42.8x55.9x11.1x
Sun, 21 Jan 2024US$5.3tUS$486.2bUS$82.1b46.4x64.9x11x
Tue, 19 Dec 2023US$5.1tUS$486.1bUS$82.9b44.7x61.6x10.5x
Thu, 16 Nov 2023US$4.9tUS$482.1bUS$79.5b45.1x61.8x10.2x
Sat, 14 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Mon, 11 Sep 2023US$4.6tUS$476.3bUS$72.9b44.8x63.6x9.7x
Wed, 09 Aug 2023US$4.5tUS$473.3bUS$68.6b47.2x65x9.4x
Price to Earnings Ratio

65x


Total Market Cap: US$4.5tTotal Earnings: US$68.6bTotal Revenue: US$473.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 49.6x202420252026
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 43.6x which is lower than its 3-year average PE of 49.6x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 9.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 29% per year over the last three years.
  • Revenues for these companies have grown 15% 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 Market0.97%
Tech0.14%
Software14.32%
Systems Software17.49%
Application Software6.47%
Industry PE
  • Investors are most optimistic about the Systems Software industry even though it's trading below its 3-year average PE ratio of 38.4x.
    • Analysts are expecting annual earnings growth of 17.5%, which is lower than the prior year's growth of 21.2% per year.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 17% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 17% 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$464.7221.8%
+US$615.4b		-11.3%PE25.8x
ORCL OracleUS$129.8712.9%
+US$42.9b		-46.9%PE22x
CRM SalesforceUS$184.0212.4%
+US$16.7b		-26.6%PE18.8x
NOW ServiceNowUS$111.2312.6%
+US$12.9b		-39.2%PE68.9x
ADBE AdobeUS$250.4111.2%
+US$10.1b		-28.0%PE13.8x

Latest News

NOW
US$111.23
ServiceNow
7D
12.6%
1Y
-39.2%
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7D
-17.2%
1Y
-34.5%
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MSFT
US$464.72
Microsoft
7D
21.8%
1Y
-11.3%
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10-K Update

Updated with the most recent annual report.
CHKP
US$127.13
Check Point Software Technologies
7D
-2.6%
1Y
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WULF
US$17.66
TeraWulf
7D
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1Y
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VRNS
US$39.95
Varonis Systems
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ORCL
US$129.87
Oracle
7D
12.9%
1Y
-46.9%
CRM
US$184.02
Salesforce
7D
12.4%
1Y
-26.6%
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Datadog
7D
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1Y
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FICO
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Fair Isaac
7D
-9.2%
1Y
-18.7%
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CORZ
US$20.72
Core Scientific
7D
-8.9%
1Y
63.8%
FTNT
US$161.95
Fortinet
7D
6.3%
1Y
66.3%
CIFR
US$22.32
Cipher Digital
7D
-3.6%
1Y
352.7%
ADBE
US$250.41
Adobe
7D
11.2%
1Y
-28.0%
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RIOT
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Riot Platforms
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-10.5%
1Y
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1Y
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