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U.S. Software Industry Analysis
UpdatedJun 21, 2025
DataAggregated Company Financials
Companies406
- 7D-0.3%
- 3M17.8%
- 1Y16.8%
- YTD10.3%
The Software is pretty flat in the last 7 days, but Circle Internet Group has stood out, gaining 80%. As for the the longer term, the industry is up 17% over the past 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 23 Jun 2025 | US$7.1t | US$599.0b | US$131.1b | 40.7x | 53.9x | 11.8x |
| Wed, 21 May 2025 | US$6.8t | US$591.1b | US$131.4b | 36.1x | 51.4x | 11.4x |
| Fri, 18 Apr 2025 | US$5.5t | US$580.5b | US$131.7b | 30x | 41.9x | 9.5x |
| Sun, 16 Mar 2025 | US$5.9t | US$582.9b | US$131.2b | 28.1x | 44.7x | 10.1x |
| Tue, 11 Feb 2025 | US$6.5t | US$586.3b | US$132.4b | 42.9x | 49x | 11.1x |
| Thu, 09 Jan 2025 | US$6.4t | US$569.1b | US$129.0b | 39x | 49.3x | 11.2x |
| Sat, 07 Dec 2024 | US$6.8t | US$566.7b | US$128.2b | 43.4x | 52.9x | 12x |
| Mon, 04 Nov 2024 | US$6.0t | US$561.9b | US$126.3b | 39x | 47.5x | 10.7x |
| Wed, 02 Oct 2024 | US$6.0t | US$551.7b | US$124.1b | 38.4x | 48.8x | 11x |
| Fri, 30 Aug 2024 | US$5.7t | US$551.3b | US$122.0b | 37.8x | 47x | 10.4x |
| Sun, 28 Jul 2024 | US$5.8t | US$532.0b | US$117.8b | 40.7x | 49x | 10.8x |
| Tue, 25 Jun 2024 | US$5.9t | US$531.3b | US$118.0b | 40.7x | 50.1x | 11.1x |
| Thu, 23 May 2024 | US$5.4t | US$474.6b | US$105.3b | 42.5x | 51.4x | 11.4x |
| Sat, 20 Apr 2024 | US$5.1t | US$466.6b | US$98.4b | 42x | 51.9x | 10.9x |
| Mon, 18 Mar 2024 | US$5.3t | US$471.0b | US$98.1b | 45.8x | 54.4x | 11.3x |
| Wed, 14 Feb 2024 | US$5.3t | US$464.6b | US$90.2b | 41.8x | 58.8x | 11.4x |
| Fri, 12 Jan 2024 | US$5.2t | US$486.2b | US$82.2b | 45.8x | 63.3x | 10.7x |
| Sun, 10 Dec 2023 | US$5.1t | US$485.6b | US$82.5b | 47.1x | 61.3x | 10.4x |
| Tue, 07 Nov 2023 | US$4.7t | US$481.3b | US$79.0b | 43x | 58.9x | 9.7x |
| Thu, 05 Oct 2023 | US$4.4t | US$477.3b | US$73.4b | 44.8x | 60.6x | 9.3x |
| Sat, 02 Sep 2023 | US$4.6t | US$475.8b | US$72.6b | 44.8x | 63.4x | 9.7x |
| Mon, 31 Jul 2023 | US$4.6t | US$466.2b | US$64.9b | 47.7x | 70.8x | 9.9x |
| Wed, 28 Jun 2023 | US$4.4t | US$460.6b | US$62.3b | 44.2x | 71.2x | 9.6x |
| Fri, 26 May 2023 | US$4.1t | US$458.2b | US$61.4b | 40.5x | 67x | 9x |
| Sun, 23 Apr 2023 | US$3.9t | US$453.7b | US$60.6b | 42.4x | 64.4x | 8.6x |
| Tue, 21 Mar 2023 | US$3.7t | US$453.6b | US$59.7b | 42.5x | 62.5x | 8.2x |
| Thu, 16 Feb 2023 | US$3.7t | US$437.3b | US$58.1b | 43.3x | 64.3x | 8.5x |
| Sat, 14 Jan 2023 | US$3.3t | US$434.5b | US$60.2b | 39.9x | 55.1x | 7.6x |
| Mon, 12 Dec 2022 | US$3.3t | US$433.7b | US$60.9b | 43.9x | 54.6x | 7.7x |
| Wed, 09 Nov 2022 | US$3.0t | US$421.6b | US$62.7b | 40.4x | 47.8x | 7.1x |
| Fri, 07 Oct 2022 | US$3.4t | US$412.2b | US$64.7b | 39.9x | 52.4x | 8.2x |
| Sun, 04 Sep 2022 | US$3.5t | US$412.7b | US$65.0b | 43.9x | 54.3x | 8.6x |
| Tue, 02 Aug 2022 | US$4.0t | US$415.9b | US$67.8b | 42.2x | 58.8x | 9.6x |
| Thu, 30 Jun 2022 | US$3.6t | US$409.3b | US$67.6b | 38.4x | 53.1x | 8.8x |
Price to Earnings Ratio
53.1x
Current Industry PE
- Investors are relatively neutral on the American Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 55.7x.
- The 3-year average PS ratio of 9.9x is lower than the industry's current PS ratio of 11.8x.
Past Earnings Growth
- The earnings for companies in the Software industry have grown 25% 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 | 0.00049% | |
| Tech | 0.92% | |
| Software | -0.29% | |
| Application Software | -0.23% | |
| Systems Software | -0.31% | |
Industry PE
- Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
- Analysts expect its future annual earnings growth (26.5%) to be largely in line with prior year's earnings growth.
- Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 38.0x.
Forecasted Growth
- Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% over the next 5 years.
- This is roughly in line with its past earnings growth rate.
- 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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| CRCL Circle Internet Group | US$240.28 | 79.9% +US$24.3b | n/a | PE2814.7x | |
| MSFT Microsoft | US$477.40 | 0.5% +US$18.1b | 6.1% | PE36.7x | |
| DDOG Datadog | US$127.50 | 5.9% +US$2.4b | 8.4% | PE265.6x | |
| CRM Salesforce | US$260.63 | 0.9% +US$2.1b | 6.4% | PE40.2x | |
| INTU Intuit | US$761.14 | 0.9% +US$2.0b | 20.4% | PE61.2x |