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U.S. Software Industry Analysis

UpdatedJul 29, 2025
DataAggregated Company Financials
Companies406
  • 7D1.1%
  • 3M25.6%
  • 1Y29.7%
  • YTD19.2%

Over the last 7 days, the Software industry has risen 1.1%, driven by gains from Microsoft of 0.5%. During this same period, the Circle Internet Group underperformed, falling 14%. This takes the industry's 12 month performance to a gain of 30%. 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
Wed, 30 Jul 2025US$7.6tUS$597.2bUS$130.9b46.6x57.8x12.7x
Fri, 27 Jun 2025US$7.2tUS$599.0bUS$131.1b42x55x12x
Sun, 25 May 2025US$6.6tUS$593.0bUS$131.7b35.3x50.3x11.2x
Tue, 22 Apr 2025US$5.5tUS$580.5bUS$131.7b29.7x41.7x9.4x
Thu, 20 Mar 2025US$5.9tUS$582.8bUS$131.2b29x44.6x10x
Sat, 15 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Mon, 13 Jan 2025US$6.3tUS$569.1bUS$129.3b38.8x48.3x11x
Wed, 11 Dec 2024US$6.8tUS$567.9bUS$128.8b43.1x52.8x12x
Fri, 08 Nov 2024US$6.3tUS$563.0bUS$127.1b40.6x49.2x11.1x
Sun, 06 Oct 2024US$6.0tUS$551.7bUS$124.1b38.8x48.1x10.8x
Tue, 03 Sep 2024US$5.8tUS$550.8bUS$122.1b38.9x47.8x10.6x
Thu, 01 Aug 2024US$5.7tUS$540.7bUS$120.1b40.4x47.6x10.6x
Sat, 29 Jun 2024US$6.0tUS$531.0bUS$118.1b40.5x50.7x11.3x
Mon, 27 May 2024US$5.4tUS$475.8bUS$105.8b42.2x50.8x11.3x
Wed, 24 Apr 2024US$5.2tUS$466.5bUS$98.4b42.4x52.6x11.1x
Fri, 22 Mar 2024US$5.4tUS$465.8bUS$98.0b45.4x55.6x11.7x
Sun, 18 Feb 2024US$5.3tUS$465.3bUS$90.9b42.7x58.3x11.4x
Tue, 16 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Thu, 14 Dec 2023US$5.1tUS$485.6bUS$82.5b49.3x61.9x10.5x
Sat, 11 Nov 2023US$4.7tUS$482.1bUS$79.1b44.3x59.8x9.8x
Mon, 09 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Wed, 06 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.9x9.8x
Fri, 04 Aug 2023US$4.5tUS$466.9bUS$66.7b45.6x66.9x9.5x
Sun, 02 Jul 2023US$4.5tUS$460.6bUS$62.2b45.3x72.4x9.8x
Tue, 30 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Thu, 27 Apr 2023US$3.9tUS$457.3bUS$62.2b42.1x62.8x8.5x
Sat, 25 Mar 2023US$3.8tUS$453.7bUS$59.8b42.3x63.9x8.4x
Mon, 20 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Wed, 18 Jan 2023US$3.3tUS$434.5bUS$60.2b40.1x55.4x7.7x
Fri, 16 Dec 2022US$3.4tUS$433.8bUS$61.1b42.8x54.9x7.7x
Sun, 13 Nov 2022US$3.4tUS$424.7bUS$62.5b42.9x54.1x8x
Tue, 11 Oct 2022US$3.2tUS$412.7bUS$64.6b37.6x49.4x7.7x
Thu, 08 Sep 2022US$3.5tUS$412.7bUS$65.0b43x53.7x8.5x
Sat, 06 Aug 2022US$4.1tUS$411.7bUS$68.5b45.3x59.5x9.9x
Price to Earnings Ratio

59.5x


Total Market Cap: US$4.1tTotal Earnings: US$68.5bTotal Revenue: US$411.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.8x202320242025
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 55.8x.
  • The 3-year average PS ratio of 10.0x is lower than the industry's current PS ratio of 12.7x.
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 13% 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 Market1.54%
Tech1.72%
Software1.05%
Application Software1.95%
Systems Software0.66%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 28.2%, which is higher than its past year's earnings growth of 21.3% per year.
  • 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 38.5x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings growth rate of 21% 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
MSFT MicrosoftUS$512.571.4%
+US$54.3b
21.2%PE39.4x
ORCL OracleUS$249.985.0%
+US$33.3b
84.3%PE56.4x
PLTR Palantir TechnologiesUS$156.284.8%
+US$17.0b
492.6%PE646.2x
CDNS Cadence Design SystemsUS$366.2614.6%
+US$12.7b
44.7%PE98.8x
INTU IntuitUS$806.345.2%
+US$11.0b
26.8%PE64.9x

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