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U.S. Software Industry Analysis

UpdatedMar 19, 2026
DataAggregated Company Financials
Companies428
  • 7D-2.6%
  • 3M-19.5%
  • 1Y-4.5%
  • YTD-17.5%

Over the last 7 days, the Software industry has dropped 2.6%, driven by a pullback from Microsoft of 3.2%. On the other hand Circle Internet Group is actually up 18%. Overall the industry is down 4.5% in 12 months. Looking forward, 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
Thu, 19 Mar 2026US$5.8tUS$669.5bUS$161.8b29.4x35.8x8.7x
Sat, 14 Feb 2026US$5.6tUS$660.4bUS$164.0b26.7x34.4x8.5x
Mon, 12 Jan 2026US$7.1tUS$648.9bUS$165.0b32.7x42.8x10.9x
Wed, 10 Dec 2025US$7.3tUS$642.0bUS$161.3b32.7x45.4x11.4x
Fri, 07 Nov 2025US$7.6tUS$639.2bUS$158.7b33.5x47.7x11.8x
Sun, 05 Oct 2025US$7.8tUS$621.4bUS$151.8b35.7x51.4x12.5x
Tue, 02 Sep 2025US$7.4tUS$616.6bUS$150.8b35.9x49x12x
Thu, 31 Jul 2025US$7.6tUS$598.4bUS$131.2b43.9x57.9x12.7x
Sat, 28 Jun 2025US$7.3tUS$599.0bUS$131.2b42x55.5x12.2x
Mon, 26 May 2025US$6.6tUS$593.0bUS$131.7b35.3x50.3x11.2x
Wed, 23 Apr 2025US$5.3tUS$580.3bUS$131.7b29.6x40.5x9.2x
Fri, 21 Mar 2025US$5.9tUS$582.8bUS$131.2b29.7x45x10.1x
Sun, 16 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Tue, 14 Jan 2025US$6.3tUS$569.1bUS$129.3b38.9x48.4x11x
Thu, 12 Dec 2024US$6.7tUS$568.6bUS$128.6b43x52.2x11.8x
Sat, 09 Nov 2024US$6.4tUS$567.3bUS$127.0b40.6x50.3x11.3x
Mon, 07 Oct 2024US$6.0tUS$551.7bUS$124.1b38.8x48.1x10.8x
Wed, 04 Sep 2024US$5.8tUS$550.8bUS$122.1b37.3x47.8x10.6x
Fri, 02 Aug 2024US$5.7tUS$541.3bUS$120.1b39.7x47.6x10.6x
Sun, 30 Jun 2024US$6.0tUS$531.0bUS$118.1b40.5x50.5x11.2x
Tue, 28 May 2024US$5.4tUS$475.9bUS$105.9b40.6x50.7x11.3x
Thu, 25 Apr 2024US$5.2tUS$466.6bUS$98.4b43.2x52.6x11.1x
Sat, 23 Mar 2024US$5.5tUS$465.8bUS$98.0b45x55.8x11.7x
Mon, 19 Feb 2024US$5.3tUS$465.3bUS$90.9b42.7x58.3x11.4x
Wed, 17 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Fri, 15 Dec 2023US$5.1tUS$486.1bUS$82.9b48.5x62x10.6x
Sun, 12 Nov 2023US$4.8tUS$482.1bUS$79.1b44.3x61.1x10x
Tue, 10 Oct 2023US$4.5tUS$477.3bUS$73.4b45.4x62x9.5x
Thu, 07 Sep 2023US$4.6tUS$476.0bUS$72.7b44.7x63.8x9.7x
Sat, 05 Aug 2023US$4.5tUS$473.0bUS$68.4b47.4x65.8x9.5x
Mon, 03 Jul 2023US$4.5tUS$460.6bUS$62.2b45.3x72.4x9.8x
Wed, 31 May 2023US$4.3tUS$458.4bUS$61.6b41.4x70.3x9.5x
Fri, 28 Apr 2023US$4.0tUS$457.8bUS$62.2b42x64.3x8.7x
Sun, 26 Mar 2023US$3.8tUS$453.7bUS$59.8b42.3x63.9x8.4x
Price to Earnings Ratio

63.9x


Total Market Cap: US$3.8tTotal Earnings: US$59.8bTotal Revenue: US$453.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.5x202420252026
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 35.8x which is lower than its 3-year average PE of 53.5x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.7x.
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 Market-2.19%
Tech-2.52%
Software-2.56%
Application Software-1.25%
Systems Software-3.14%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 16.2x.
    • Analysts are expecting annual earnings growth of 24.9%, which is higher than its past year's earnings growth of 18.7% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below 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.
  • This is better than its past earnings growth rate of 19% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 16% 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
CRCL Circle Internet GroupUS$132.8417.8%
+US$4.8b		n/aPS11.7x
PANW Palo Alto NetworksUS$168.912.4%
+US$3.2b		-9.9%PE106.9x
PLTR Palantir TechnologiesUS$152.770.8%
+US$2.8b		77.4%PE224.8x
INTU IntuitUS$446.791.4%
+US$1.8b		-25.9%PE28.5x
NBIS Nebius GroupUS$118.565.9%
+US$1.7b		329.9%PE1034.4x

Latest News

MSTR
US$140.56
Strategy
7D
1.6%
1Y
-53.8%
SAIL
US$12.47
SailPoint
7D
-21.0%
1Y
-37.5%
CRWD
US$435.81
CrowdStrike Holdings
7D
-1.4%
1Y
16.2%
ORCL
US$152.90
Oracle
7D
-6.3%
1Y
0.3%
MSFT
US$391.79
Microsoft
7D
-3.2%
1Y
1.0%
NBIS
US$118.56
Nebius Group
7D
5.9%
1Y
329.9%

NBIS: Meta AI Infrastructure Contracts Will Support Future Capacity Expansion

The analyst price target for Nebius Group has increased to $278.70, with analysts citing large new AI infrastructure contracts with Meta and ongoing Buy initiations as key reasons for the reassessment. Analyst Commentary Bullish analysts are framing Nebius as a key AI infrastructure player, with recent research tying higher price targets to large, long-term cloud and AI contracts as well as expanding analyst coverage.
INTU
US$446.79
Intuit
7D
1.4%
1Y
-25.9%
CRCL
US$132.84
Circle Internet Group
7D
17.8%
1Y
n/a
WDAY
US$132.29
Workday
7D
-4.0%
1Y
-47.6%
NOW
US$113.71
ServiceNow
7D
-1.7%
1Y
-32.6%

NOW: AI Platform Adoption And Buybacks Will Drive Long Term Upside

Analysts have trimmed their fair value estimate for ServiceNow to $130.18 from $133.26, citing slightly higher discount rate assumptions, along with modest adjustments to revenue growth, profit margin, and future P/E expectations. What's in the News ServiceNow issued guidance for GAAP subscription revenue of US$3,650 million to US$3,655 million for Q1 2026 and US$15,530 million to US$15,570 million for full year 2026, giving investors a concrete view of management’s current revenue expectations (Corporate guidance).
IOT
US$33.68
Samsara
7D
5.0%
1Y
-15.4%

IOT: Future Returns Will Reflect AI Safety Data Moat In Fleet Operations

Analysts have adjusted the Samsara fair value estimate down from $48.93 to $44.17, reflecting a mix of higher and lower Street price targets as they weigh strong recurring revenue trends, large customer momentum, and AI-related opportunities against updated growth and margin assumptions. Analyst Commentary Street research around Samsara reflects a blend of optimism on growth execution and recurring revenue, alongside some valuation and competitive caution that has led to mixed price target revisions.
APP
US$442.57
AppLovin
7D
-4.1%
1Y
49.0%
ADBE
US$246.00
Adobe
7D
-10.1%
1Y
-36.6%
PANW
US$168.91
Palo Alto Networks
7D
2.4%
1Y
-9.9%

PANW: AI Security Consolidation And Geopolitical Positioning Will Drive Future Repricing

The analyst price target for Palo Alto Networks has shifted modestly lower to $208, with analysts citing mixed reactions to recent results, a slightly lower profit margin outlook, and a higher assumed future P/E multiple. These factors are partly offset by views that AI driven security demand and broad exposure across key cybersecurity trends continue to support the story.
DDOG
US$131.26
Datadog
7D
3.0%
1Y
25.7%
PLTR
US$152.77
Palantir Technologies
7D
0.8%
1Y
77.4%

Analysis of Palantir Technologies: Commercial Acceleration and Financial Maturity

Palantir Technologies Inc. has evolved from a specialized government contractor into a broad-market software provider.