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U.S. Software Industry Analysis

UpdatedApr 26, 2025
DataAggregated Company Financials
Companies402
  • 7D8.2%
  • 3M-11.2%
  • 1Y6.7%
  • YTD-6.4%

In the last week, the Software industry is up 8.2%, with Microsoft up 6.5%. Meanwhile, Tyler Technologies actually underperformed within the industry, shrinking 8.0% in the last week. This means that the industry has gained 6.7% over the past 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
Sat, 26 Apr 2025US$5.9tUS$581.1bUS$131.9b32x44.4x10.1x
Mon, 24 Mar 2025US$5.9tUS$582.8bUS$131.2b29.5x45.2x10.2x
Wed, 19 Feb 2025US$6.6tUS$588.2bUS$130.0b42.2x50.8x11.2x
Fri, 17 Jan 2025US$6.4tUS$569.2bUS$129.3b40.1x49.3x11.2x
Sun, 15 Dec 2024US$6.7tUS$569.1bUS$128.8b41.7x52.3x11.8x
Tue, 12 Nov 2024US$6.4tUS$567.0bUS$123.7b41.4x51.8x11.3x
Thu, 10 Oct 2024US$6.0tUS$551.7bUS$124.1b38.1x48.2x10.8x
Sat, 07 Sep 2024US$5.6tUS$551.3bUS$123.1b34.9x45.6x10.2x
Mon, 05 Aug 2024US$5.5tUS$541.8bUS$120.2b38.2x45.8x10.1x
Wed, 03 Jul 2024US$6.0tUS$530.5bUS$118.1b40.8x51.2x11.4x
Fri, 31 May 2024US$5.1tUS$476.0bUS$106.9b39.1x47.6x10.7x
Sun, 28 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Tue, 26 Mar 2024US$5.5tUS$465.8bUS$98.0b45.1x55.8x11.7x
Thu, 22 Feb 2024US$5.2tUS$465.6bUS$92.5b43.6x56.5x11.2x
Sat, 20 Jan 2024US$5.3tUS$486.2bUS$82.1b46.4x64.9x11x
Mon, 18 Dec 2023US$5.1tUS$486.1bUS$82.9b47.3x61.6x10.5x
Wed, 15 Nov 2023US$4.8tUS$482.2bUS$79.6b45.1x60.7x10x
Fri, 13 Oct 2023US$4.6tUS$477.3bUS$73.7b45.1x62.3x9.6x
Sun, 10 Sep 2023US$4.6tUS$476.3bUS$72.9b44.8x63.6x9.7x
Tue, 08 Aug 2023US$4.5tUS$473.0bUS$68.4b48.4x66.2x9.6x
Thu, 06 Jul 2023US$4.5tUS$460.7bUS$60.4b47.7x74.4x9.8x
Sat, 03 Jun 2023US$4.4tUS$459.8bUS$62.0b42.6x70.9x9.6x
Mon, 01 May 2023US$4.0tUS$457.3bUS$62.5b42.2x64.2x8.8x
Wed, 29 Mar 2023US$3.8tUS$453.7bUS$59.7b42.6x63.4x8.3x
Fri, 24 Feb 2023US$3.6tUS$437.5bUS$58.5b42.7x60.7x8.1x
Sun, 22 Jan 2023US$3.4tUS$434.5bUS$60.2b42.3x55.7x7.7x
Tue, 20 Dec 2022US$3.3tUS$434.3bUS$60.3b41.7x54x7.5x
Thu, 17 Nov 2022US$3.3tUS$424.9bUS$62.5b46.2x53.1x7.8x
Sat, 15 Oct 2022US$3.1tUS$412.8bUS$64.3b36.9x47.9x7.5x
Mon, 12 Sep 2022US$3.7tUS$413.1bUS$64.9b42.8x57x8.9x
Wed, 10 Aug 2022US$3.9tUS$412.0bUS$68.2b43.5x57.9x9.6x
Fri, 08 Jul 2022US$3.7tUS$408.6bUS$67.7b36.8x55.1x9.1x
Sun, 05 Jun 2022US$3.8tUS$409.0bUS$67.8b40.6x55.9x9.3x
Tue, 03 May 2022US$4.0tUS$402.2bUS$68.5b40.4x58.1x9.9x
Price to Earnings Ratio

58.1x


Total Market Cap: US$4.0tTotal Earnings: US$68.5bTotal Revenue: US$402.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.9x202320242025
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 44.4x which is lower than its 3-year average PE of 55.9x.
  • The industry is trading close to its 3-year average PS ratio of 9.8x.
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 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 Market4.71%
Tech8.22%
Software8.17%
Application Software9.62%
Systems Software7.47%
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 23.9%, which is lower than the prior year's growth of 45.5% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 37.6x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 46% 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$391.856.5%
+US$178.9b
-3.6%PE31.4x
PLTR Palantir TechnologiesUS$112.7820.3%
+US$44.6b
400.8%PE572.3x
NOW ServiceNowUS$945.2622.4%
+US$35.8b
30.6%PE127.2x
ORCL OracleUS$138.497.7%
+US$27.7b
18.2%PE31.9x
CRM SalesforceUS$267.858.3%
+US$19.8b
-2.3%PE41.5x
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Latest News

CRM

US$267.85

Salesforce

7D

8.3%

1Y

-2.3%

CRWD

US$424.88

CrowdStrike Holdings

7D

13.1%

1Y

39.7%

NOW

US$945.26

ServiceNow

7D

22.4%

1Y

30.6%

TYL

US$524.64

Tyler Technologies

7D

-8.0%

1Y

13.9%

YOU

US$25.31

Clear Secure

7D

-5.2%

1Y

44.3%

APP

US$276.83

AppLovin

7D

16.2%

1Y

275.0%

MSFT

US$391.85

Microsoft

7D

6.5%

1Y

-3.6%

NCNO

US$23.04

nCino

7D

-3.8%

1Y

-21.9%

DGNX

US$92.70

Diginex

7D

-19.5%

1Y

n/a