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U.S. Software Industry Analysis

UpdatedJul 24, 2026
DataAggregated Company Financials
Companies428
  • 7D-5.7%
  • 3M-6.0%
  • 1Y-26.4%
  • YTD-18.7%

Over the last 7 days, the Software industry has dropped 5.7%, driven by a pullback from Microsoft of 4.9%. In contrast, Nebius Group has gained 29%. Overall the industry is down 26% in 12 months. 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
Fri, 24 Jul 2026US$5.7tUS$700.2bUS$156.3b27x36.7x8.2x
Sun, 21 Jun 2026US$5.8tUS$698.5bUS$156.5b25.5x36.9x8.3x
Tue, 19 May 2026US$6.2tUS$685.9bUS$154.9b27.8x39.8x9x
Thu, 16 Apr 2026US$5.5tUS$667.8bUS$161.5b29.7x34.3x8.3x
Sat, 14 Mar 2026US$5.8tUS$669.3bUS$161.4b27.8x35.9x8.7x
Mon, 09 Feb 2026US$5.7tUS$662.4bUS$162.0b26.9x35x8.6x
Wed, 07 Jan 2026US$7.0tUS$648.9bUS$165.0b32.7x42.2x10.7x
Fri, 05 Dec 2025US$7.1tUS$641.7bUS$161.9b31.4x43.9x11.1x
Sun, 02 Nov 2025US$7.8tUS$636.9bUS$158.3b34.9x49.3x12.3x
Tue, 30 Sep 2025US$7.7tUS$620.9bUS$151.9b35.1x51x12.5x
Thu, 28 Aug 2025US$7.4tUS$615.8bUS$150.8b35.1x48.8x11.9x
Sat, 26 Jul 2025US$7.5tUS$597.2bUS$130.9b45.7x57.5x12.6x
Mon, 23 Jun 2025US$7.0tUS$599.0bUS$131.1b40.7x53.5x11.7x
Wed, 21 May 2025US$6.8tUS$591.1bUS$131.4b36.1x51.4x11.4x
Fri, 18 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.9x9.5x
Sun, 16 Mar 2025US$5.9tUS$582.9bUS$131.2b28.1x44.7x10.1x
Tue, 11 Feb 2025US$6.5tUS$586.3bUS$132.4b42.9x49x11.1x
Thu, 09 Jan 2025US$6.4tUS$569.1bUS$129.0b39x49.3x11.2x
Sat, 07 Dec 2024US$6.8tUS$566.7bUS$128.2b43.4x52.9x12x
Mon, 04 Nov 2024US$6.0tUS$561.9bUS$126.3b39x47.5x10.7x
Wed, 02 Oct 2024US$6.0tUS$551.7bUS$124.1b38.4x48.8x11x
Fri, 30 Aug 2024US$5.7tUS$551.3bUS$122.0b37.8x47x10.4x
Sun, 28 Jul 2024US$5.8tUS$532.0bUS$117.8b40.7x49x10.8x
Tue, 25 Jun 2024US$5.9tUS$531.3bUS$118.0b40.7x50.1x11.1x
Thu, 23 May 2024US$5.4tUS$474.6bUS$105.3b42.5x51.4x11.4x
Sat, 20 Apr 2024US$5.1tUS$466.6bUS$98.4b42x51.9x10.9x
Mon, 18 Mar 2024US$5.3tUS$471.0bUS$98.1b45.8x54.4x11.3x
Wed, 14 Feb 2024US$5.3tUS$464.6bUS$90.2b41.8x58.8x11.4x
Fri, 12 Jan 2024US$5.2tUS$486.2bUS$82.2b45.8x63.3x10.7x
Sun, 10 Dec 2023US$5.1tUS$485.6bUS$82.5b47.1x61.3x10.4x
Tue, 07 Nov 2023US$4.7tUS$481.3bUS$79.0b43x58.9x9.7x
Thu, 05 Oct 2023US$4.4tUS$477.3bUS$73.4b44.8x60.6x9.3x
Sat, 02 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Mon, 31 Jul 2023US$4.6tUS$466.2bUS$64.9b47.7x70.8x9.9x
Price to Earnings Ratio

70.8x


Total Market Cap: US$4.6tTotal Earnings: US$64.9bTotal Revenue: US$466.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 49.9x202420252026
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 36.7x which is lower than its 3-year average PE of 49.9x.
  • The 3-year average PS ratio of 10.6x is higher than the industry's current PS ratio of 8.2x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 34% 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 Market-1.98%
Tech0.26%
Software-5.72%
Systems Software-5.17%
Application Software-7.11%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 67.0x.
    • Analysts are expecting annual earnings growth of 26.7%, which is higher than its past year's earnings growth of 11.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 38.5x.
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 11% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 18% 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
NBIS Nebius GroupUS$220.9728.6%
+US$12.6b		323.6%PE76.9x
CIFR Cipher DigitalUS$25.8245.7%
+US$3.3b		288.3%PS50.3x
HUT Hut 8US$117.6728.0%
+US$2.9b		456.6%PS46.6x
IREN IRENUS$40.5820.7%
+US$2.5b		129.0%PE91.8x
RIOT Riot PlatformsUS$23.8626.8%
+US$1.9b		62.4%PS13.8x

Latest News

APP
US$398.86
AppLovin
7D
-8.2%
1Y
10.8%
Seeking Alpha • 7h

AppLovin Is Still A Strong Buy While The Market Is Shy

Summary AppLovin is rated a Strong Buy, with a compelling entry point after a recent 17% price drop since prior coverage and robust growth prospects. Management guides for 53% revenue and 60% adjusted EBITDA growth YoY, driven by digital advertising tailwinds and APP's advanced AXON and MAX platforms. Competitive threats from Meta, Google, and Amazon are real, but APP's distinct market position and partnerships support a profitable second-channel thesis. With ~30% medium-term annual EPS growth expected and a forward PEG ratio well below the sector median, I target a 42% annualized return over 18 months. Read the full article on Seeking Alpha
ORCL
US$120.04
Oracle
7D
-3.4%
1Y
-50.6%
MSFT
US$381.58
Microsoft
7D
-4.9%
1Y
-25.3%
NOW
US$91.94
ServiceNow
7D
-11.6%
1Y
-53.9%
CRWD
US$183.42
CrowdStrike Holdings
7D
-10.0%
1Y
58.8%
HUT
US$117.67
Hut 8
7D
28.0%
1Y
456.6%
WULF
US$20.05
TeraWulf
7D
11.5%
1Y
276.9%
CIFR
US$25.82
Cipher Digital
7D
45.7%
1Y
288.3%
PANW
US$325.63
Palo Alto Networks
7D
-8.0%
1Y
61.9%
NBIS
US$220.97
Nebius Group
7D
28.6%
1Y
323.6%
IREN
US$40.58
IREN
7D
20.7%
1Y
129.0%
PLTR
US$123.37
Palantir Technologies
7D
-8.2%
1Y
-20.3%
Seeking Alpha • Jul 20

Why I Think Palantir's Moat Keeps Growing

Summary Palantir Technologies Inc.'s AIP Bootcamp model creates Ontology-driven customer flywheels, helping U.S. commercial revenue surge 133% year over year in Q1 2026. Remaining Deal Value expanded faster than revenue, showing customers increasingly broaden deployments instead of simply renewing existing software contracts. U.S. government revenue jumped 84% year over year as PLTR became embedded in defense, intelligence and sovereign AI infrastructure across allied nations. Despite exceptional growth, a Rule of 40 above 140%, and nearly $8 billion in cash, PLTR's stock valuation above 41x forward sales leaves minimal room for execution mistakes. Read the full article on Seeking Alpha
CORZ
US$23.96
Core Scientific
7D
14.4%
1Y
74.1%
Narrative Update • Jul 15

CORZ: Prompt Power Buildout For AI Hosting Will Drive Future Returns

Analysts have raised the Core Scientific fair value estimate from $32.05 to $33.36. Higher Street price targets, connected to expected opportunities in AI-focused data centers and high performance compute colocation, are partly offset by updated assumptions for margins and valuation multiples.
CRM
US$156.93
Salesforce
7D
-9.1%
1Y
-41.4%
Narrative Update • Jul 13

CRM: Debt-Funded Buybacks Will Accelerate AI Transition Despite Market Skepticism

The updated analyst price target for Salesforce has been reduced by about $22 to reflect slightly lower modeled revenue growth, modestly softer profit margins, a higher discount rate, and a less demanding future P/E multiple, as analysts weigh mixed survey feedback, slower AI monetization expectations, and ongoing debate around the impact of Agentforce and broader AI adoption. Analyst Commentary Recent Street research on Salesforce highlights a split view, but there is a clear group of bullish analysts who see the current setup as attractive, particularly after the stock pullback and ongoing investment in AI and agentic capabilities.
RIOT
US$23.86
Riot Platforms
7D
26.8%
1Y
62.4%
Narrative Update • Jul 13

RIOT: Power First Data Center Pivot Will Leverage Secured Nuclear Backed Energy

Analysts have nudged their fair value estimate for Riot Platforms higher, with the modeled target rising from $28.55 to $29.50 as they factor in sector price target increases tied to power-backed AI and data center opportunities, along with slightly firmer profit margin assumptions. Analyst Commentary Recent Street research around Riot Platforms centers on its power-backed AI and high performance compute ambitions, with several bullish analysts adjusting price targets upward while a smaller group highlights execution and deal timing risks.
BSP
US$33.35
Bending Spoons
7D
3.8%
1Y
n/a
Seeking Alpha • Jul 08

Bending Spoons: I Wouldn't Pay A Tech Multiple For This PE Play

Summary I think Bending Spoons S.p.A. operates like a tech-focused private equity fund, acquiring and restructuring distressed digital businesses, rather than a "traditional" tech company. Bending Spoon doesn't have a strong, integrated ecosystem of apps/platforms that can benefit from scale. It focuses on acquiring "cheap" businesses and optimizing their operations. BSP's growth is heavily reliant on M&A, with management allocating nearly $1B in IPO proceeds to future acquisitions and lacking clear organic growth guidance. Valuation hinges on M&A execution, which remains uncertain given the company's limited size. My DCF scenarios yield a wide price target range ($6–$122), reflecting high uncertainty and risk. I assign BSP a Hold rating, given the market's indecision on whether the company merits tech-like multiples or should be valued as a financial operator. Read the full article on Seeking Alpha