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U.S. Software Industry Analysis

UpdatedApr 10, 2026
DataAggregated Company Financials
Companies429
  • 7D-2.8%
  • 3M-25.3%
  • 1Y-8.2%
  • YTD-23.8%

Over the last 7 days, the Software industry has dropped 2.8%, driven by a pullback from Palantir Technologies of 12%. On the other hand Nebius Group is actually up 25%. Overall the industry is down 8.2% in 12 months. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 10 Apr 2026US$5.3tUS$667.8bUS$161.4b27.8x33x8x
Sun, 08 Mar 2026US$5.9tUS$665.5bUS$160.9b27x36.8x8.9x
Tue, 03 Feb 2026US$6.2tUS$660.6bUS$174.1b27.7x35.4x9.3x
Thu, 01 Jan 2026US$7.2tUS$645.4bUS$164.8b31.7x43.4x11.1x
Sat, 29 Nov 2025US$7.1tUS$640.4bUS$161.2b31.8x44x11.1x
Mon, 27 Oct 2025US$7.9tUS$621.4bUS$151.9b33.3x51.9x12.7x
Wed, 24 Sep 2025US$8.0tUS$620.8bUS$151.7b36.2x52.4x12.8x
Fri, 22 Aug 2025US$7.3tUS$614.8bUS$150.1b35.4x48.8x11.9x
Sun, 20 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.3x12.6x
Tue, 17 Jun 2025US$7.0tUS$598.9bUS$130.9b41.5x53.8x11.7x
Thu, 15 May 2025US$6.7tUS$590.9bUS$131.0b32.9x51.1x11.3x
Sat, 12 Apr 2025US$5.6tUS$581.3bUS$131.8b29.3x42.4x9.6x
Mon, 10 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.1x10.3x
Wed, 05 Feb 2025US$6.4tUS$585.8bUS$132.3b42.1x48.6x11x
Fri, 03 Jan 2025US$6.4tUS$569.1bUS$128.9b39.9x49.4x11.2x
Sun, 01 Dec 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Tue, 29 Oct 2024US$6.1tUS$552.6bUS$124.3b38.2x49.3x11.1x
Thu, 26 Sep 2024US$6.0tUS$552.4bUS$124.0b38x48.7x10.9x
Sat, 24 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.6x10.5x
Mon, 22 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Wed, 19 Jun 2024US$5.9tUS$531.3bUS$118.1b39.6x49.7x11x
Fri, 17 May 2024US$5.4tUS$474.1bUS$104.9b44.1x51.1x11.3x
Sun, 14 Apr 2024US$5.4tUS$466.3bUS$98.4b41.9x55x11.6x
Tue, 12 Mar 2024US$5.3tUS$470.2bUS$98.5b46.2x54.1x11.3x
Thu, 08 Feb 2024US$5.3tUS$463.9bUS$89.8b44.2x58.8x11.4x
Sat, 06 Jan 2024US$5.0tUS$486.2bUS$82.8b45.1x60.3x10.3x
Mon, 04 Dec 2023US$5.1tUS$485.3bUS$81.9b46.1x62.1x10.5x
Wed, 01 Nov 2023US$4.5tUS$484.8bUS$79.0b42.3x57.2x9.3x
Fri, 29 Sep 2023US$4.4tUS$477.4bUS$73.2b44.7x59.7x9.2x
Sun, 27 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Tue, 25 Jul 2023US$4.6tUS$460.9bUS$60.2b48.3x76.7x10x
Thu, 22 Jun 2023US$4.4tUS$460.5bUS$62.3b43.7x70.8x9.6x
Sat, 20 May 2023US$4.2tUS$457.1bUS$61.1b39.9x68.1x9.1x
Mon, 17 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Price to Earnings Ratio

64.6x


Total Market Cap: US$3.9tTotal Earnings: US$60.5bTotal Revenue: US$453.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 52.9x202420252026
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 33.0x which is lower than its 3-year average PE of 52.9x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.0x.
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 Market3.43%
Tech3.65%
Software-2.81%
Systems Software-1.12%
Application Software-6.52%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 23.5x.
    • 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 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
NBIS Nebius GroupUS$136.3325.3%
+US$7.0b		548.0%PE1189.4x
MSTR StrategyUS$128.867.5%
+US$3.2b		-57.0%PS93.5x
PANW Palo Alto NetworksUS$166.992.3%
+US$3.1b		-0.8%PE105.6x
WULF TeraWulfUS$19.0327.9%
+US$1.8b		749.6%PS47.9x
SNPS SynopsysUS$404.922.3%
+US$1.7b		-3.9%PE70.2x

Latest News

ORCL
US$137.86
Oracle
7D
-5.8%
1Y
3.4%

Oracle's Layoffs: The $4 Billion Return Threshold Investors Cannot Ignore

Apr 10
ADBE
US$229.94
Adobe
7D
-5.3%
1Y
-34.3%

Adobe: Scared Money Don't Make Money, Reiterate Buy

Apr 10
NOW
US$89.81
ServiceNow
7D
-12.0%
1Y
-42.7%
SNPS
US$404.92
Synopsys
7D
2.3%
1Y
-3.9%
WULF
US$19.03
TeraWulf
7D
27.9%
1Y
749.6%
HUT
US$63.42
Hut 8
7D
31.8%
1Y
440.7%

Hut 8 Corp. (HUT): The "Power Sovereign" Scaling a $7 Billion AI Infrastructure Pivot

Hut 8 Corp. (HUT) , one of North America’s largest digital asset miners and infrastructure pioneers, closed the April 8, 2026, trading session at $61.43 USD on the NASDAQ.
WDAY
US$113.06
Workday
7D
-14.5%
1Y
-49.7%

WDAY: Returning Leader And AI Focus Will Shape Post Guidance Reset Phase

Workday's analyst price targets have been cut sharply, with several firms trimming ranges by roughly $50 to $125 and citing slower sales trends, revised long term guidance, heavier AI investment weighing on margins, and added uncertainty around the CEO transition as key reasons. Analyst Commentary Street research around Workday is split between those who see the recent reset as an opportunity and those who view it as a sign that execution risk and growth uncertainty are rising.
NBIS
US$136.33
Nebius Group
7D
25.3%
1Y
548.0%

Nebius: Winning The AI GPU Shortage Game

Apr 08
INTU
US$361.69
Intuit
7D
-14.4%
1Y
-37.4%

INTU: AI Embedded Agents And Partnerships Will Support Future Product Resilience

Intuit's analyst fair value estimate has been trimmed slightly to $603.49. Analysts point to renewed confidence in the resilience of its QuickBooks and TurboTax franchises to AI disruption, along with ongoing AI adoption across the product set, as key reasons for maintaining generally constructive long term assumptions despite a wave of reduced price targets.
PANW
US$166.99
Palo Alto Networks
7D
2.3%
1Y
-0.8%

PANW: AI Cyber Enforcement Role And China Tensions Will Drive Repricing

The analyst fair value estimate for Palo Alto Networks has edged from about $207.75 to $205.96, with analysts generally citing lower sector multiples after recent cybersecurity and AI related volatility. At the same time, many still point to solid demand drivers and supportive commentary on AI as a long term tailwind for leading security platforms.
CIFR
US$16.36
Cipher Digital
7D
27.6%
1Y
636.9%

Cipher Digital's $9B Pivot To AI Infrastructure Is Still Undervalued

Apr 07
PLTR
US$130.49
Palantir Technologies
7D
-12.1%
1Y
47.4%

Why Palantir's Best Days May Still Be Ahead

Apr 06
DDOG
US$108.98
Datadog
7D
-9.5%
1Y
17.0%

DDOG: Enterprise AI Workloads Will Support Shares Despite Sector Multiple Reset

Datadog's analyst price target has been trimmed slightly, with the fair value estimate moving from about $182.43 to $181.52 as analysts balance cautious revisions to revenue growth assumptions and sector P/E multiples with ongoing interest in Datadog's role in observability and enterprise AI workloads. Analyst Commentary Recent Street research on Datadog clusters into two camps, with bullish analysts focusing on the company’s role in observability and AI driven workloads, and bearish analysts concentrating on valuation resets and competitive pressures.
CRM
US$170.85
Salesforce
7D
-8.7%
1Y
-33.0%

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.
RIOT
US$16.69
Riot Platforms
7D
29.8%
1Y
136.4%

RIOT: Power First Data Center Shift Will Drive Future AI Upside

Narrative Update Analysts have trimmed their average price targets for Riot Platforms by a few dollars to reflect reduced Bitcoin mining value, weaker recent mining results and sector multiple compression. At the same time, they note the company’s shift toward higher value data center and AI infrastructure, supported by deals such as its AMD partnership and its growing focus on high performance computing demand.
MSTR
US$128.86
Strategy
7D
7.5%
1Y
-57.0%