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U.S. Software Industry Analysis
UpdatedMay 01, 2025
DataAggregated Company Financials
Companies400
- 7D4.7%
- 3M-6.7%
- 1Y10.8%
- YTD-5.3%
In the last week, the Software industry is up 4.7%, with Microsoft up 9.8%. During this same period, the Confluent underperformed, falling 16%. This means that the industry has gained 11% over the past year. Looking forward, earnings are forecast to grow by 18% annually.
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 |
|---|---|---|---|---|---|---|
| Fri, 02 May 2025 | US$6.0t | US$581.7b | US$131.6b | 31.7x | 45.4x | 10.3x |
| Sun, 30 Mar 2025 | US$5.7t | US$582.3b | US$130.7b | 29.4x | 43.7x | 9.8x |
| Tue, 25 Feb 2025 | US$6.4t | US$580.0b | US$129.9b | 37.8x | 49x | 11x |
| Thu, 23 Jan 2025 | US$6.5t | US$568.2b | US$129.2b | 42.2x | 50.3x | 11.4x |
| Sat, 21 Dec 2024 | US$6.5t | US$569.1b | US$128.8b | 40.8x | 50.6x | 11.5x |
| Mon, 18 Nov 2024 | US$6.3t | US$566.6b | US$127.1b | 41.4x | 49.9x | 11.2x |
| Wed, 16 Oct 2024 | US$6.1t | US$551.7b | US$124.1b | 38.5x | 48.9x | 11x |
| Fri, 13 Sep 2024 | US$5.9t | US$552.2b | US$123.6b | 36.7x | 47.7x | 10.7x |
| Sun, 11 Aug 2024 | US$5.6t | US$548.6b | US$121.5b | 34.7x | 46.1x | 10.2x |
| Tue, 09 Jul 2024 | US$6.2t | US$530.5b | US$118.1b | 40.5x | 52.3x | 11.6x |
| Thu, 06 Jun 2024 | US$5.1t | US$476.3b | US$107.0b | 40.1x | 47.8x | 10.7x |
| Sat, 04 May 2024 | US$5.1t | US$476.8b | US$103.2b | 42.5x | 49.8x | 10.8x |
| Mon, 01 Apr 2024 | US$5.4t | US$465.9b | US$98.3b | 45.3x | 54.9x | 11.6x |
| Wed, 28 Feb 2024 | US$5.3t | US$466.6b | US$95.1b | 43.6x | 56.1x | 11.4x |
| Fri, 26 Jan 2024 | US$5.4t | US$486.7b | US$82.4b | 44.9x | 65.9x | 11.2x |
| Sun, 24 Dec 2023 | US$5.2t | US$486.1b | US$82.9b | 44.5x | 62.4x | 10.6x |
| Tue, 21 Nov 2023 | US$4.9t | US$482.4b | US$79.9b | 45.3x | 61.5x | 10.2x |
| Thu, 19 Oct 2023 | US$4.5t | US$477.3b | US$73.7b | 42.5x | 61.5x | 9.5x |
| Sat, 16 Sep 2023 | US$4.6t | US$479.6b | US$72.7b | 45.6x | 63.7x | 9.7x |
| Mon, 14 Aug 2023 | US$4.4t | US$473.0b | US$70.1b | 45.7x | 63x | 9.3x |
| Wed, 12 Jul 2023 | US$4.5t | US$460.7b | US$60.1b | 49.2x | 74.8x | 9.8x |
| Fri, 09 Jun 2023 | US$4.3t | US$460.0b | US$62.1b | 42.5x | 69.3x | 9.4x |
| Sun, 07 May 2023 | US$4.0t | US$455.5b | US$60.6b | 38.1x | 65.6x | 8.7x |
| Tue, 04 Apr 2023 | US$3.9t | US$453.7b | US$60.6b | 43.9x | 65.1x | 8.7x |
| Thu, 02 Mar 2023 | US$3.4t | US$440.2b | US$58.9b | 42.3x | 58.5x | 7.8x |
| Sat, 28 Jan 2023 | US$3.5t | US$435.5b | US$57.9b | 42.5x | 60.2x | 8x |
| Mon, 26 Dec 2022 | US$3.2t | US$434.3b | US$60.3b | 41.7x | 53.7x | 7.5x |
| Wed, 23 Nov 2022 | US$3.3t | US$430.4b | US$61.9b | 44.9x | 53.9x | 7.8x |
| Fri, 21 Oct 2022 | US$3.2t | US$412.8b | US$64.3b | 38x | 49.9x | 7.8x |
| Sun, 18 Sep 2022 | US$3.4t | US$413.7b | US$64.8b | 39.8x | 52.6x | 8.2x |
| Tue, 16 Aug 2022 | US$4.1t | US$409.9b | US$67.8b | 49.8x | 60.6x | 10x |
| Thu, 14 Jul 2022 | US$3.5t | US$408.7b | US$67.9b | 35.9x | 51.4x | 8.5x |
| Sat, 11 Jun 2022 | US$3.6t | US$409.7b | US$68.1b | 38.6x | 52.2x | 8.7x |
| Mon, 09 May 2022 | US$3.8t | US$404.7b | US$68.3b | 38.3x | 54.9x | 9.3x |
Price to Earnings Ratio
54.9x
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 45.4x which is lower than its 3-year average PE of 55.8x.
- 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 Market | 2.66% | |
| Tech | 4.29% | |
| Software | 4.68% | |
| Application Software | 6.70% | |
| Systems Software | 3.71% | |
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?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| MSFT Microsoft | US$425.40 | 9.8% +US$282.6b | 6.9% | PE32.7x | |
| ORCL Oracle | US$145.49 | 5.8% +US$22.4b | 26.6% | PE33.6x | |
| MSTR MicroStrategy | US$381.60 | 8.9% +US$8.1b | 237.9% | PS214.5x | |
| PLTR Palantir Technologies | US$116.20 | 3.0% +US$8.1b | 398.1% | PE593.3x | |
| PANW Palo Alto Networks | US$186.27 | 5.8% +US$6.8b | 26.1% | PE98.3x |
