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U.S. Software Industry Analysis

UpdatedDec 16, 2025
DataAggregated Company Financials
Companies424
  • 7D-4.4%
  • 3M-9.8%
  • 1Y1.4%
  • YTD8.2%

Over the last 7 days, the Software industry has dropped 4.4%, driven by Microsoft declining 3.5%. As for the longer term, the industry's performance has been flat for the past year. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Dec 2025US$7.1tUS$645.9bUS$164.8b32.4x43.2x11x
Thu, 13 Nov 2025US$7.5tUS$640.5bUS$158.5b32.1x47.4x11.7x
Sat, 11 Oct 2025US$7.9tUS$621.4bUS$151.7b34.8x52x12.7x
Mon, 08 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.2x11.8x
Wed, 06 Aug 2025US$7.6tUS$610.7bUS$147.7b38.9x51.7x12.5x
Fri, 04 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Sun, 01 Jun 2025US$6.8tUS$594.2bUS$131.7b36.8x51.4x11.4x
Tue, 29 Apr 2025US$5.9tUS$581.3bUS$131.8b31.7x45x10.2x
Thu, 27 Mar 2025US$6.1tUS$582.2bUS$131.6b29x46.1x10.4x
Sat, 22 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Mon, 20 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.8x11.3x
Wed, 18 Dec 2024US$6.8tUS$569.1bUS$128.8b42x52.8x12x
Fri, 15 Nov 2024US$6.5tUS$566.7bUS$127.0b42.2x51.3x11.5x
Sun, 13 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Tue, 10 Sep 2024US$5.7tUS$551.3bUS$123.1b35.7x46.1x10.3x
Thu, 08 Aug 2024US$5.4tUS$547.6bUS$121.7b37x44.7x9.9x
Sat, 06 Jul 2024US$6.1tUS$530.5bUS$118.1b40.9x51.6x11.5x
Mon, 03 Jun 2024US$5.1tUS$476.0bUS$106.9b39.8x47.8x10.7x
Wed, 01 May 2024US$5.0tUS$476.8bUS$102.4b42.2x48.7x10.5x
Fri, 29 Mar 2024US$5.4tUS$465.9bUS$98.2b45.1x55.1x11.6x
Sun, 25 Feb 2024US$5.3tUS$466.5bUS$93.1b43.9x57.1x11.4x
Tue, 23 Jan 2024US$5.4tUS$486.2bUS$82.1b46.8x65.7x11.1x
Thu, 21 Dec 2023US$5.2tUS$486.1bUS$82.9b43.9x62.2x10.6x
Sat, 18 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x62x10.3x
Mon, 16 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Wed, 13 Sep 2023US$4.7tUS$476.3bUS$73.0b45x64.2x9.8x
Fri, 11 Aug 2023US$4.4tUS$473.0bUS$69.9b45.7x63.4x9.4x
Sun, 09 Jul 2023US$4.5tUS$460.7bUS$60.4b47x73.8x9.7x
Tue, 06 Jun 2023US$4.4tUS$459.8bUS$62.0b42.4x70.9x9.6x
Thu, 04 May 2023US$3.9tUS$453.6bUS$61.2b39.8x63.8x8.6x
Sat, 01 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.5x8.7x
Mon, 27 Feb 2023US$3.5tUS$438.0bUS$58.9b42.3x59x7.9x
Wed, 25 Jan 2023US$3.4tUS$434.6bUS$60.2b42.3x56.4x7.8x
Fri, 23 Dec 2022US$3.2tUS$434.3bUS$60.3b41.5x53.7x7.5x
Price to Earnings Ratio

53.7x


Total Market Cap: US$3.2tTotal Earnings: US$60.3bTotal Revenue: US$434.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.2x202320242025
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 43.2x which is lower than its 3-year average PE of 55.2x.
  • The industry is trading close to its 3-year average PS ratio of 10.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% 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 Market-0.69%
Tech-4.53%
Software-4.42%
Application Software-2.26%
Systems Software-5.43%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 24.7%, which is lower than the prior year's growth of 37.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 40.0x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 37% 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
PLTR Palantir TechnologiesUS$183.250.8%
+US$3.4b		146.3%PE398.7x
ADBE AdobeUS$351.152.0%
+US$2.9b		-22.9%PE20.6x
FICO Fair IsaacUS$1.81k2.7%
+US$1.1b		-16.7%PE65.7x
EVCM EverCommerceUS$13.3634.0%
+US$608.1m		10.9%PS3.3x
SAIL SailPointUS$20.643.8%
+US$427.3m		n/aPS11.4x

Latest News

NOW
US$765.20
ServiceNow
7D
-10.3%
1Y
-32.3%
CRWD
US$487.47
CrowdStrike Holdings
7D
-5.9%
1Y
29.5%
FICO
US$1,807.73
Fair Isaac
7D
2.7%
1Y
-16.7%

FICO: Rising Mortgage License Ambitions Will Likely Struggle Against Intensifying Score Competition

Analysts have nudged our Fair Isaac fair value estimate higher from $1,364 to about $1,490. This reflects slightly faster expected revenue growth, modestly lower future valuation multiples, and the view that initiatives like FICO 10T and the mortgage direct license program will reinforce the company’s dominant, high margin scoring franchise despite near term guidance uncertainty.
ROP
US$443.60
Roper Technologies
7D
0.7%
1Y
-17.4%

ROP: Recurring Cash Flows And First Buyback Will Drive Future Upside

Our Roper Technologies analyst price target edges slightly lower to $573.56 from $575.50, as analysts balance the company’s durable, recurring cash flow profile and long term compounder status against a more cautious outlook following mixed Q3 results, narrowed organic growth guidance, and shifting investor preference toward higher beta and cyclical names. Analyst Commentary Recent Street research reflects a more balanced view on Roper Technologies, with analysts recognizing the strength of its high margin software portfolio while revising expectations to reflect moderating organic growth and shifting risk appetite across the sector.
PANW
US$185.88
Palo Alto Networks
7D
-4.7%
1Y
-7.6%

PANW: AI Platform And M&A Expansion Will Drive Long-Term Share Gains

The analyst price target for Palo Alto Networks has edged higher by $0 to approximately $225 per share, as analysts balance concerns over decelerating growth and acquisition costs with confidence in the company’s expanding AI driven security platform, strategic M&A, and growing next generation security revenue opportunity. Analyst Commentary Street research on Palo Alto Networks remains divided, with most firms constructive on the company’s long term AI and platform strategy while a minority flag the risk that revenue growth deceleration and rich valuation could cap upside.
ORCL
US$184.92
Oracle
7D
-16.2%
1Y
8.0%

ORCL: AI Infrastructure Commitments Will Drive Multi-Year Cloud Demand Upside

The analyst fair value estimate for Oracle has been raised from $325.00 to $400.00 per share as analysts balance accelerating AI driven revenue growth, supported by robust RPO and bullish buy rated initiations and target hikes, against near term margin pressure, heavier capex, and mixed views on the sustainability and quality of large cloud commitments. Analyst Commentary Street research remains divided on Oracle, but recent commentary has tilted toward a constructive outlook as investors digest record AI related backlog, ambitious FY30 targets, and evolving profitability expectations.
YOU
US$38.87
Clear Secure
7D
10.3%
1Y
45.7%
MSFT
US$474.82
Microsoft
7D
-3.5%
1Y
4.5%
BRZE
US$33.12
Braze
7D
8.1%
1Y
-26.0%

BRZE: Gen AI Monetization Is Expected To Drive Customer Engagement Upside

Analysts have nudged their fair value estimate for Braze higher from $45.11 to $47.06, citing its positioning as a leading beneficiary of Gen AI monetization in customer engagement software and its resilience amid AI related competitive headlines across front office marketing tools. Analyst Commentary Bullish analysts highlight Braze as a prime way to gain exposure to Gen AI monetization in customer engagement, with recent research pointing to strong early adoption signals and a supportive competitive backdrop.
ADBE
US$351.15
Adobe
7D
2.0%
1Y
-22.9%
SAIL
US$20.64
SailPoint
7D
3.8%
1Y
n/a
MSTR
US$162.08
Strategy
7D
-14.2%
1Y
-58.1%
CRM
US$254.58
Salesforce
7D
-1.9%
1Y
-28.7%
EVCM
US$13.36
EverCommerce
7D
34.0%
1Y
10.9%
PLTR
US$183.25
Palantir Technologies
7D
0.8%
1Y
146.3%
APP
US$675.17
AppLovin
7D
-2.1%
1Y
96.3%

APP: Expanded Share Repurchases Will Drive Future Bullish Momentum

Analysts have modestly raised their price target on AppLovin by about 1 percent to approximately 728.25 dollars, citing slightly stronger expected revenue growth, marginally improved profit margins, and a still elevated but easing future earnings multiple. What's in the News AppLovin expanded its share repurchase activity, completing the buyback of 76.6 million shares, or about 21.4% of shares outstanding, for roughly 4.18 billion dollars, including 1.19 million shares repurchased in the latest quarter for 510.29 million dollars (company buyback update).