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U.S. Software Industry Analysis

UpdatedApr 12, 2026
DataAggregated Company Financials
Companies430
  • 7D-4.0%
  • 3M-26.2%
  • 1Y-9.3%
  • YTD-24.8%

Over the last 7 days, the Software industry has dropped 4.0%, driven by a pullback from Palantir Technologies of 14%. In contrast, Nebius Group has gained 33%. The industry has fallen 9.3% in the last year. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 12 Apr 2026US$5.2tUS$667.8bUS$161.5b26.8x32.1x7.8x
Tue, 10 Mar 2026US$5.9tUS$665.5bUS$160.9b27.3x36.8x8.9x
Thu, 05 Feb 2026US$5.9tUS$661.3bUS$174.7b26.2x33.8x8.9x
Sat, 03 Jan 2026US$7.0tUS$645.3bUS$164.7b31.7x42.5x10.8x
Mon, 01 Dec 2025US$7.1tUS$640.4bUS$161.2b31.8x44x11.1x
Wed, 29 Oct 2025US$8.0tUS$621.6bUS$152.0b34.3x52.5x12.8x
Fri, 26 Sep 2025US$7.8tUS$620.9bUS$151.9b36x51.4x12.6x
Sun, 24 Aug 2025US$7.4tUS$615.8bUS$150.8b35x49x12x
Tue, 22 Jul 2025US$7.5tUS$596.3bUS$130.8b43.6x57.3x12.6x
Thu, 19 Jun 2025US$7.1tUS$598.9bUS$131.1b41x53.9x11.8x
Sat, 17 May 2025US$6.7tUS$591.1bUS$131.4b34.9x51.1x11.4x
Mon, 14 Apr 2025US$5.7tUS$581.3bUS$131.8b29.3x42.9x9.7x
Wed, 12 Mar 2025US$5.7tUS$583.2bUS$130.1b30.6x43.9x9.8x
Fri, 07 Feb 2025US$6.5tUS$586.1bUS$131.8b41.9x49.6x11.1x
Sun, 05 Jan 2025US$6.4tUS$569.1bUS$129.0b40.3x49.9x11.3x
Tue, 03 Dec 2024US$6.5tUS$566.8bUS$127.5b42.2x51.2x11.5x
Thu, 31 Oct 2024US$6.2tUS$552.9bUS$124.3b38.4x49.9x11.2x
Sat, 28 Sep 2024US$6.1tUS$552.4bUS$124.0b38.7x48.8x11x
Mon, 26 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.8x10.6x
Wed, 24 Jul 2024US$5.9tUS$531.1bUS$118.4b41.1x49.8x11.1x
Fri, 21 Jun 2024US$5.9tUS$531.3bUS$118.0b40.2x49.7x11x
Sun, 19 May 2024US$5.3tUS$474.3bUS$104.9b45.1x51x11.3x
Tue, 16 Apr 2024US$5.3tUS$466.3bUS$98.4b41.1x54.2x11.4x
Thu, 14 Mar 2024US$5.4tUS$470.1bUS$98.5b46.6x55.2x11.6x
Sat, 10 Feb 2024US$5.5tUS$464.2bUS$90.0b42.7x61.1x11.8x
Mon, 08 Jan 2024US$5.0tUS$486.2bUS$82.8b45.1x60.3x10.3x
Wed, 06 Dec 2023US$5.0tUS$485.3bUS$82.3b44.7x61x10.3x
Fri, 03 Nov 2023US$4.6tUS$485.3bUS$79.7b43.3x57.5x9.4x
Sun, 01 Oct 2023US$4.4tUS$477.3bUS$73.4b44.8x59.9x9.2x
Tue, 29 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Thu, 27 Jul 2023US$4.6tUS$465.5bUS$63.6b47.9x71.9x9.8x
Sat, 24 Jun 2023US$4.4tUS$460.5bUS$62.3b44x70.8x9.6x
Mon, 22 May 2023US$4.2tUS$457.4bUS$61.0b39.9x68.1x9.1x
Wed, 19 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x65x8.7x
Price to Earnings Ratio

65x


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 52.8x202420252026
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 32.1x which is lower than its 3-year average PE of 52.8x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 7.8x.
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 Market3.38%
Tech4.52%
Software-4.04%
Systems Software-2.11%
Application Software-8.34%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 24.2x.
    • Analysts are expecting annual earnings growth of 25.6%, 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 15% 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$144.9733.2%
+US$9.1b		574.0%PE1264.8x
MSTR StrategyUS$128.647.4%
+US$3.1b		-57.1%PS93.3x
HUT Hut 8US$66.0937.4%
+US$2.0b		443.5%PS31.2x
WULF TeraWulfUS$18.8726.8%
+US$1.7b		692.9%PS47.5x
APP AppLovinUS$391.381.3%
+US$1.7b		56.6%PE38.5x

Latest News

NBIS
US$144.97
Nebius Group
7D
33.2%
1Y
574.0%
NOW
US$83.00
ServiceNow
7D
-18.6%
1Y
-47.2%

ServiceNow Inc. (NOW): The "AI Control Tower" and the 2026 Agentic Transformation

ServiceNow Inc. (NOW) closed the April 10, 2026, session at $82.91 USD on the NYSE, experiencing a period of significant technical pressure as the stock trades near its 52-week lows.
INTU
US$350.94
Intuit
7D
-16.9%
1Y
-40.2%
MSFT
US$370.87
Microsoft
7D
-0.7%
1Y
-4.5%

Microsoft: Temporary CapEx Panic Masks The Long-Term Edge

Apr 10
ORCL
US$138.09
Oracle
7D
-5.7%
1Y
4.3%

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

Apr 10
ADBE
US$225.35
Adobe
7D
-7.2%
1Y
-36.1%

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

Apr 10
APP
US$391.38
AppLovin
7D
1.3%
1Y
56.6%
WULF
US$18.87
TeraWulf
7D
26.8%
1Y
692.9%
HUT
US$66.09
Hut 8
7D
37.4%
1Y
443.5%

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.
PANW
US$155.73
Palo Alto Networks
7D
-4.6%
1Y
-7.5%

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$16.53
Cipher Digital
7D
28.9%
1Y
583.1%

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

Apr 07
IREN
US$39.32
IREN
7D
13.1%
1Y
598.4%
PLTR
US$128.06
Palantir Technologies
7D
-13.7%
1Y
44.6%

Why Palantir's Best Days May Still Be Ahead

Apr 06
CRM
US$164.96
Salesforce
7D
-11.9%
1Y
-35.3%

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$16.60
Riot Platforms
7D
29.1%
1Y
135.1%

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$128.64
Strategy
7D
7.4%
1Y
-57.1%