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U.S. Software Industry Analysis

UpdatedJul 03, 2025
DataAggregated Company Financials
Companies404
  • 7D1.8%
  • 3M39.8%
  • 1Y18.4%
  • YTD16.3%

Last week, the Software industry hasn't moved much but Oracle is up 12% in that time. As for the the longer term, the industry is up 17% over the past 12 months. 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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 04 Jul 2025US$7.2tUS$598.9bUS$131.3b41.6x55.1x12.1x
Sun, 01 Jun 2025US$6.8tUS$594.2bUS$131.7b36.8x51.4x11.4x
Tue, 29 Apr 2025US$5.9tUS$581.3bUS$131.8b31.7x45x10.2x
Thu, 27 Mar 2025US$6.1tUS$582.2bUS$131.6b29x46.1x10.4x
Sat, 22 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Mon, 20 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.8x11.3x
Wed, 18 Dec 2024US$6.8tUS$569.1bUS$128.8b42x52.8x12x
Fri, 15 Nov 2024US$6.5tUS$566.7bUS$127.0b42.2x51.3x11.5x
Sun, 13 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Tue, 10 Sep 2024US$5.7tUS$551.3bUS$123.1b35.7x46.1x10.3x
Thu, 08 Aug 2024US$5.4tUS$547.6bUS$121.7b37x44.7x9.9x
Sat, 06 Jul 2024US$6.1tUS$530.5bUS$118.1b40.9x51.6x11.5x
Mon, 03 Jun 2024US$5.1tUS$476.0bUS$106.9b39.8x47.8x10.7x
Wed, 01 May 2024US$5.0tUS$476.8bUS$102.4b42.2x48.7x10.5x
Fri, 29 Mar 2024US$5.4tUS$465.9bUS$98.2b45.1x55.1x11.6x
Sun, 25 Feb 2024US$5.3tUS$466.5bUS$93.1b43.9x57.1x11.4x
Tue, 23 Jan 2024US$5.4tUS$486.2bUS$82.1b46.8x65.7x11.1x
Thu, 21 Dec 2023US$5.2tUS$486.1bUS$82.9b43.9x62.2x10.6x
Sat, 18 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x62x10.3x
Mon, 16 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Wed, 13 Sep 2023US$4.7tUS$476.3bUS$73.0b45x64.2x9.8x
Fri, 11 Aug 2023US$4.4tUS$473.0bUS$69.9b45.7x63.4x9.4x
Sun, 09 Jul 2023US$4.5tUS$460.7bUS$60.4b47x73.8x9.7x
Tue, 06 Jun 2023US$4.4tUS$459.8bUS$62.0b42.4x70.9x9.6x
Thu, 04 May 2023US$3.9tUS$453.6bUS$61.2b39.8x63.8x8.6x
Sat, 01 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.5x8.7x
Mon, 27 Feb 2023US$3.5tUS$438.0bUS$58.9b42.3x59x7.9x
Wed, 25 Jan 2023US$3.4tUS$434.6bUS$60.2b42.3x56.4x7.8x
Fri, 23 Dec 2022US$3.2tUS$434.3bUS$60.3b41.5x53.7x7.5x
Sun, 20 Nov 2022US$3.3tUS$430.3bUS$62.3b44.4x53.1x7.7x
Tue, 18 Oct 2022US$3.1tUS$412.8bUS$64.3b36.9x47.9x7.5x
Thu, 15 Sep 2022US$3.6tUS$413.2bUS$64.9b41.3x55.1x8.7x
Sat, 13 Aug 2022US$4.1tUS$409.9bUS$68.0b49.7x60.3x10x
Mon, 11 Jul 2022US$3.7tUS$408.6bUS$67.7b37x55x9.1x
Price to Earnings Ratio

55x


Total Market Cap: US$3.7tTotal Earnings: US$67.7bTotal Revenue: US$408.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.7x202320242025
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 55.7x.
  • The 3-year average PS ratio of 10.0x is lower than the industry's current PS ratio of 12.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 25% 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 Market2.15%
Tech2.29%
Software1.77%
Systems Software2.02%
Application Software1.21%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts expect its future annual earnings growth (26.8%) to be largely in line with prior year's earnings growth.
  • 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 38.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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
ORCL OracleUS$237.3211.5%
+US$68.8b		64.4%PE53.6x
MSFT MicrosoftUS$498.850.3%
+US$10.4b		8.3%PE38.4x
DDOG DatadogUS$155.1518.3%
+US$8.3b		18.0%PE323.3x
SNPS SynopsysUS$548.7410.7%
+US$8.2b		-9.6%PE63.1x
NOW ServiceNowUS$1.04k3.3%
+US$6.9b		32.9%PE140.9x

Latest News

ORCL
US$237.32
Oracle
7D
11.5%
1Y
64.4%
NOW
US$1,044.69
ServiceNow
7D
3.3%
1Y
32.9%
APP
US$341.64
AppLovin
7D
-1.7%
1Y
292.9%
PLTR
US$134.36
Palantir Technologies
7D
-6.9%
1Y
419.8%
MSTR
US$403.99
MicroStrategy
7D
4.5%
1Y
210.3%
ADBE
US$379.31
Adobe
7D
-1.5%
1Y
-33.5%

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Jul 02
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RBRK
US$89.08
Rubrik
7D
-3.3%
1Y
197.6%
DDOG
US$155.15
Datadog
7D
18.3%
1Y
18.0%
CRCL
US$188.77
Circle Internet Group
7D
-11.6%
1Y
n/a
PONY
US$12.86
Pony AI
7D
-11.8%
1Y
n/a
TEAM
US$213.53
Atlassian
7D
7.6%
1Y
17.2%

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Jun 25
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MSFT
US$498.84
Microsoft
7D
0.6%
1Y
6.7%
author-image

Microsoft Will Lead the Charge with a 12% Revenue Growth Ahead

Where do you think revenue will be in 5 years time? and why?📊 Where Could MSFT’s Revenue Be in 5 Years?As of FY2023, Microsoft's revenue was $232 billion, with an average 5-year CAGR (Compound Annual
CDNS
US$326.81
Cadence Design Systems
7D
7.6%
1Y
3.6%
SNPS
US$548.74
Synopsys
7D
10.7%
1Y
-9.6%
SAIL
US$22.16
SailPoint
7D
-6.1%
1Y
n/a
NBIS
US$50.25
Nebius Group
7D
-4.5%
1Y
n/a