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U.S. Software Industry Analysis

UpdatedJun 14, 2025
DataAggregated Company Financials
Companies407
  • 7D0.9%
  • 3M19.7%
  • 1Y19.1%
  • YTD10.3%

Over the last 7 days, the Software industry has remained flat, although notably Oracle gained 24%. The past year has been better, since the industry has gained 19% in that time. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 14 Jun 2025US$7.1tUS$598.9bUS$130.9b40.7x54x11.8x
Mon, 12 May 2025US$6.4tUS$590.8bUS$130.8b33.7x49.2x10.9x
Wed, 09 Apr 2025US$5.2tUS$581.3bUS$131.9b28.3x39.7x9x
Fri, 07 Mar 2025US$6.1tUS$582.2bUS$129.5b33.3x47.4x10.6x
Sun, 02 Feb 2025US$6.5tUS$585.7bUS$132.3b41.2x48.9x11x
Tue, 31 Dec 2024US$6.5tUS$569.1bUS$128.9b40.2x50.4x11.4x
Thu, 28 Nov 2024US$6.6tUS$566.7bUS$127.6b42.1x51.8x11.7x
Sat, 26 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49x11x
Mon, 23 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Wed, 21 Aug 2024US$5.8tUS$549.1bUS$121.6b36.4x48.1x10.7x
Fri, 19 Jul 2024US$5.9tUS$530.6bUS$118.4b41.4x50x11.2x
Sun, 16 Jun 2024US$5.8tUS$531.3bUS$118.1b39.5x49.2x10.9x
Tue, 14 May 2024US$5.2tUS$474.3bUS$104.2b44.7x50.2x11x
Thu, 11 Apr 2024US$5.4tUS$466.0bUS$98.4b41.9x55.1x11.6x
Sat, 09 Mar 2024US$5.3tUS$470.2bUS$98.4b46.1x54.2x11.3x
Mon, 05 Feb 2024US$5.5tUS$497.2bUS$87.9b46x62.9x11.1x
Wed, 03 Jan 2024US$5.1tUS$486.1bUS$82.9b47.3x61.1x10.4x
Fri, 01 Dec 2023US$5.1tUS$484.8bUS$81.9b46.4x61.7x10.4x
Sun, 29 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Tue, 26 Sep 2023US$4.4tUS$477.4bUS$73.2b45.2x60.1x9.2x
Thu, 24 Aug 2023US$4.5tUS$473.8bUS$70.7b43.8x63.5x9.5x
Sat, 22 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Mon, 19 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Wed, 17 May 2023US$4.0tUS$456.8bUS$61.1b38.7x66x8.8x
Fri, 14 Apr 2023US$3.9tUS$453.6bUS$60.5b43.9x65.2x8.7x
Sun, 12 Mar 2023US$3.5tUS$453.6bUS$60.0b42.3x58.2x7.7x
Tue, 07 Feb 2023US$3.6tUS$436.5bUS$57.8b42.3x62x8.2x
Thu, 05 Jan 2023US$3.2tUS$434.4bUS$60.2b42x53.1x7.4x
Sat, 03 Dec 2022US$3.5tUS$433.4bUS$61.0b46.2x56.8x8x
Mon, 31 Oct 2022US$3.3tUS$418.7bUS$61.5b39.7x53.5x7.9x
Wed, 28 Sep 2022US$3.3tUS$413.7bUS$64.8b39.3x50.2x7.9x
Fri, 26 Aug 2022US$3.9tUS$412.0bUS$65.4b47.3x58.9x9.4x
Sun, 24 Jul 2022US$3.7tUS$408.9bUS$67.9b42.8x54.3x9x
Tue, 21 Jun 2022US$3.4tUS$409.2bUS$68.0b37.2x50.1x8.3x
Price to Earnings Ratio

50.1x


Total Market Cap: US$3.4tTotal Earnings: US$68.0bTotal Revenue: US$409.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.7x202320242025
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 24% 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-0.60%
Tech-0.18%
Software0.94%
Systems Software2.59%
Application Software-2.52%
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 (26.2%) 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 37.9x.
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?

CompanyLast Price7D1YValuation
ORCL OracleUS$215.2223.7%
+US$115.5b		55.8%PE48.5x
MSFT MicrosoftUS$474.961.0%
+US$34.0b		7.3%PE36.5x
PLTR Palantir TechnologiesUS$137.407.6%
+US$22.8b		482.9%PE568.2x
CRCL Circle Internet GroupUS$133.5624.0%
+US$6.4b		n/aPE1564.5x
CRWD CrowdStrike HoldingsUS$480.622.6%
+US$3.0b		24.7%PS29x
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Latest News

ADBE

US$391.68

Adobe

7D

-6.1%

1Y

-25.4%

ORCL

US$215.22

Oracle

7D

23.7%

1Y

55.8%

SAIL

US$22.61

SailPoint

7D

18.6%

1Y

n/a

INTU

US$753.98

Intuit

7D

-2.3%

1Y

26.6%

IOT

US$39.21

Samsara

7D

-13.1%

1Y

39.7%

CRWD

US$480.62

CrowdStrike Holdings

7D

2.6%

1Y

24.7%

MSFT

US$474.96

Microsoft

7D

1.0%

1Y

7.3%

CRM

US$258.40

Salesforce

7D

-5.9%

1Y

11.4%

PLTR

US$137.40

Palantir Technologies

7D

7.6%

1Y

482.9%

CRCL

US$133.56

Circle Internet Group

7D

24.0%

1Y

n/a

APP

US$364.49

AppLovin

7D

-12.8%

1Y

370.2%

NOW

US$988.66

ServiceNow

7D

-4.0%

1Y

35.7%

FTNT

US$100.83

Fortinet

7D

-3.9%

1Y

65.9%

MSTR

US$382.87

MicroStrategy

7D

2.2%

1Y

156.0%

TEAM

US$196.82

Atlassian

7D

-8.2%

1Y

22.9%

CDNS

US$300.00

Cadence Design Systems

7D

1.0%

1Y

-3.9%

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