U.S. Software Industry Analysis

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
Tue, 30 Jun 2026	US$5.6t	US$697.7b	US$156.3b	27.2x	35.9x	8x
Thu, 28 May 2026	US$6.2t	US$687.3b	US$155.3b	29.2x	39.9x	9x
Sat, 25 Apr 2026	US$5.9t	US$668.8b	US$157.2b	30.5x	37.5x	8.8x
Mon, 23 Mar 2026	US$5.6t	US$668.3b	US$162.0b	29.4x	34.4x	8.3x
Wed, 18 Feb 2026	US$5.7t	US$660.3b	US$164.1b	25.4x	34.7x	8.6x
Fri, 16 Jan 2026	US$6.8t	US$648.9b	US$159.8b	32.4x	42.5x	10.5x
Sun, 14 Dec 2025	US$7.1t	US$645.9b	US$164.8b	32.9x	43.2x	11x
Tue, 11 Nov 2025	US$7.5t	US$640.0b	US$159.1b	32.5x	47.2x	11.7x
Thu, 09 Oct 2025	US$7.8t	US$621.4b	US$151.8b	36x	51.6x	12.6x
Sat, 06 Sep 2025	US$7.3t	US$618.2b	US$151.4b	35.8x	48.4x	11.9x
Mon, 04 Aug 2025	US$7.6t	US$611.0b	US$146.9b	39.7x	51.4x	12.4x
Wed, 02 Jul 2025	US$7.2t	US$599.0b	US$131.2b	42.2x	55.1x	12.1x
Fri, 30 May 2025	US$6.7t	US$594.0b	US$131.7b	36.4x	51.1x	11.3x
Sun, 27 Apr 2025	US$5.9t	US$581.1b	US$131.9b	32x	45x	10.2x
Tue, 25 Mar 2025	US$5.9t	US$582.9b	US$131.1b	29.9x	45.3x	10.2x
Thu, 20 Feb 2025	US$6.6t	US$588.2b	US$130.0b	42.2x	50.8x	11.2x
Sat, 18 Jan 2025	US$6.4t	US$569.2b	US$129.3b	40.8x	49.5x	11.3x
Mon, 16 Dec 2024	US$6.7t	US$569.1b	US$128.8b	41.2x	51.8x	11.7x
Wed, 13 Nov 2024	US$6.4t	US$567.1b	US$123.7b	41.2x	52.1x	11.4x
Fri, 11 Oct 2024	US$6.0t	US$551.6b	US$124.1b	37.7x	48.7x	10.9x
Sun, 08 Sep 2024	US$5.6t	US$551.3b	US$123.1b	34.9x	45.6x	10.2x
Tue, 06 Aug 2024	US$5.5t	US$541.8b	US$120.2b	37x	45.8x	10.2x
Thu, 04 Jul 2024	US$6.1t	US$530.5b	US$118.1b	41.3x	51.6x	11.5x
Sat, 01 Jun 2024	US$5.1t	US$475.9b	US$106.9b	39.8x	47.6x	10.7x
Mon, 29 Apr 2024	US$5.2t	US$476.7b	US$102.7b	43.9x	50.4x	10.9x
Wed, 27 Mar 2024	US$5.4t	US$465.8b	US$98.0b	45.1x	55.4x	11.7x
Fri, 23 Feb 2024	US$5.2t	US$466.1b	US$92.8b	42.8x	55.9x	11.1x
Sun, 21 Jan 2024	US$5.3t	US$486.2b	US$82.1b	46.4x	64.9x	11x
Tue, 19 Dec 2023	US$5.1t	US$486.1b	US$82.9b	44.7x	61.6x	10.5x
Thu, 16 Nov 2023	US$4.9t	US$482.1b	US$79.5b	45.1x	61.8x	10.2x
Sat, 14 Oct 2023	US$4.5t	US$477.3b	US$73.7b	44.3x	61.3x	9.5x
Mon, 11 Sep 2023	US$4.6t	US$476.3b	US$72.9b	44.8x	63.6x	9.7x
Wed, 09 Aug 2023	US$4.5t	US$473.3b	US$68.6b	47.2x	65x	9.4x
Fri, 07 Jul 2023	US$4.5t	US$460.7b	US$60.4b	47.2x	74.3x	9.7x

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 35.9x which is lower than its 3-year average PE of 50.7x.

The 3-year average PS ratio of 10.6x 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 37% per year over the last three years.
Revenues for these companies have grown 15% 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	0.31%
Tech	-1.87%
Software	-0.33%
Application Software	2.09%
Systems Software	-1.26%

Industry PE

Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 57.1x.

Analysts are expecting annual earnings growth of 26.7%, which is higher than its past year's earnings growth of 10.8% per year.

Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 38.8x.

Forecasted Growth

Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
This is better than its past earnings growth rate of 11% per year.

In contrast, the Systems Software industry is expected to see its earnings grow by 18% 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
PANW Palo Alto Networks	US$332.00	15.9% +US$37.2b	62.2%	PE321x
CRWD CrowdStrike Holdings	US$742.91	9.1% +US$15.8b	51.0%	PS37.1x
DDOG Datadog	US$248.57	12.7% +US$10.0b	87.8%	PE652.2x
APP AppLovin	US$498.76	6.3% +US$9.9b	42.5%	PE42.8x
NOW ServiceNow	US$99.97	7.5% +US$7.2b	-51.4%	PE58.7x

Nebius Unveils Nebius AI Cloud 3.6 With New Developer Experience, Security, Governance, And Storage Enhancements

Nebius unveiled Nebius AI Cloud 3.6, adding new developer experience, security and governance improvements, as well as enhanced storage capabilities for teams running AI in production on Nebius’s full-stack AI cloud platform. Version 3.6 of Nebius AI Cloud “Aether” introduces Nebius Echo, an AI agent for controlling cloud infrastructure using natural language. Built directly into the Nebius AI Cloud web console, Echo can answer questions and execute core operations, with guardrails to prevent unintentional actions. Nebius Echo runs on open-source models hosted on Nebius Token Factory, Nebius’s production inference platform. The first-look version released covers core cloud services, with infrastructure debugging and multi-step infrastructure-as-code deployments among upcoming features on the roadmap. Aether 3.6 delivers a broader set of developer experience improvements targeting the time teams lose before the real work begins. This includes one-click access and deeper integration with SkyPilot, with no control plane to maintain; a new step-by-step instance creation workflow; global search across all services and tenants; a unified Notification Center; and more. Nebius is opening the Nebius Builder Program in early preview, offering developers and ML engineers credits across Nebius AI Cloud, Nebius Token Factory, and Nebius Academy, plus engineer office hours and a builder community. Members of the Nebius Builder Program get early access to the new Nebius Certifications program developed by Nebius Academy, starting with AI Cloud Ops (Associate), available now. Additional tracks for AI application builders, solutions architects, infrastructure engineers, and business leaders across the Nebius ecosystem will be introduced in the coming weeks. The new release of Nebius AI Cloud extends the security and governance controls that teams need to run sensitive workloads in regulated environments. A new Key Management Service (KMS) with customer-managed encryption keys (CMEK) and cryptographic erasure puts control of data encryption into customers’ hands, while Workload Identity Federation enables credential-free authentication across environment boundaries. Other enhancements include more granular controls for Soperator, Nebius's managed Slurm-on-Kubernetes service, and Managed Kubernetes, including a new “Bring Your Own Image” (BYOI) feature for hardened or compliance-validated base images. The release introduces a new Budgets feature, letting FinOps teams set spending targets and threshold-based alerts across projects. Nebius AI Cloud 3.6 delivers local SSDs on GPU servers for high-performance caching, removing I/O bottlenecks during training and inference. A new Intelligent Object Storage Class automatically moves archived data to a lower-cost tier, with no request or egress fees. Using the Enhanced class, Object Storage shows 30% more read bandwidth for single-threaded client connections. On the shared filesystem, 4K file operations deliver 3x more IOPS, metadata-heavy workloads deliver up to 100x more IOPS, and validated cluster sizes now reach 100 PB. Nebius AI Cloud Aether 3.6 — at a glance: Developer experience: Nebius Echo, an AI agent for natural-language infrastructure control; Managed Service for SkyPilot; Unified Notification Center; Global Search; New instance creation workflow; Updated pricing calculator. Security and governance: KMS with customer-managed encryption keys (CMEK); Workload Identity Federation; Soperator IAM-based access; Managed Kubernetes API access control; Budgets; Bring Your Own Image (BYOI); Datadog Log Management integration; Disk snapshots. Storage and other platform improvements: Intelligent Object Storage Class with automatic cost-tier migration; 30% read Object Storage bandwidth improvement for single-thread connections; Local SSD disks on GPU servers; 3x more IOPS for 4K files operations and up to 100x more IOPS for metadata-heavy workloads for Shared Filesystem; Validated filesystem clusters size up to 100 PB; Kubernetes v1.34 support.

U.S. Software Industry Analysis

Industry Valuation and Performance

Industry Trends

Top Stock Gainers and Losers

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