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U.S. Software Industry Analysis

UpdatedJun 09, 2026
DataAggregated Company Financials
Companies440
  • 7D-11.4%
  • 3M7.8%
  • 1Y-10.5%
  • YTD-9.0%

Over the last 7 days, the Software industry has dropped 11%, driven by a pullback from Microsoft of 11%. Meanwhile, Octave Intelligence actually outperformed within the industry, gaining 8.7% in the last week. Overall the industry is down 11% in 12 months. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

Has the U.S. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 10 Jun 2026US$6.3tUS$692.7bUS$155.4b28.2x40.5x9.1x
Fri, 08 May 2026US$6.0tUS$682.4bUS$155.0b29.3x38.5x8.8x
Sun, 05 Apr 2026US$5.4tUS$668.3bUS$161.4b30x33.5x8.1x
Tue, 03 Mar 2026US$5.6tUS$664.9bUS$163.7b26.4x34.1x8.4x
Thu, 29 Jan 2026US$6.8tUS$649.2bUS$159.8b30.1x42.4x10.4x
Sat, 27 Dec 2025US$7.2tUS$645.4bUS$164.7b31.7x43.8x11.2x
Mon, 24 Nov 2025US$6.8tUS$640.4bUS$160.5b28.8x42.5x10.7x
Wed, 22 Oct 2025US$7.7tUS$621.7bUS$151.8b35.2x51x12.5x
Fri, 19 Sep 2025US$7.7tUS$620.8bUS$151.7b35.4x50.7x12.4x
Sun, 17 Aug 2025US$7.5tUS$614.4bUS$150.3b35.7x50.2x12.3x
Tue, 15 Jul 2025US$7.3tUS$598.9bUS$131.4b42.9x55.7x12.2x
Thu, 12 Jun 2025US$6.9tUS$593.9bUS$131.6b40.9x52.6x11.7x
Sat, 10 May 2025US$6.5tUS$590.8bUS$130.8b33.7x49.3x10.9x
Mon, 07 Apr 2025US$5.3tUS$581.3bUS$131.8b28.8x39.9x9.1x
Wed, 05 Mar 2025US$6.0tUS$580.7bUS$129.4b34.5x46.6x10.4x
Fri, 31 Jan 2025US$6.7tUS$585.4bUS$132.1b41.2x50.4x11.4x
Sun, 29 Dec 2024US$6.5tUS$569.1bUS$128.8b40.7x50.5x11.4x
Tue, 26 Nov 2024US$6.5tUS$566.0bUS$127.5b42.2x51.1x11.5x
Thu, 24 Oct 2024US$6.1tUS$552.0bUS$124.1b37.2x49.3x11.1x
Sat, 21 Sep 2024US$6.1tUS$552.4bUS$124.0b38.4x49.2x11x
Mon, 19 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.7x10.6x
Wed, 17 Jul 2024US$6.1tUS$530.6bUS$118.4b41.7x51.1x11.4x
Fri, 14 Jun 2024US$5.8tUS$530.8bUS$117.8b39.9x48.9x10.9x
Sun, 12 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Tue, 09 Apr 2024US$5.4tUS$466.0bUS$98.3b43.3x54.8x11.6x
Thu, 07 Mar 2024US$5.2tUS$470.0bUS$98.4b45x53.3x11.2x
Sat, 03 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Mon, 01 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Wed, 29 Nov 2023US$5.0tUS$482.7bUS$80.2b46.5x62.3x10.4x
Fri, 27 Oct 2023US$4.4tUS$484.6bUS$78.9b41.4x55.8x9.1x
Sun, 24 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Tue, 22 Aug 2023US$4.3tUS$473.7bUS$70.6b43.7x61.5x9.2x
Thu, 20 Jul 2023US$4.8tUS$460.7bUS$60.1b49.5x79.2x10.3x
Sat, 17 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Price to Earnings Ratio

72.7x


Total Market Cap: US$4.5tTotal Earnings: US$62.3bTotal Revenue: US$460.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 51.3x202420252026
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 40.5x which is lower than its 3-year average PE of 51.4x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 9.1x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 36% per year over the last three years.
  • Revenues for these companies have grown 15% 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-2.73%
Tech-6.35%
Software-11.41%
Application Software-11.26%
Systems Software-11.47%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 47.7x.
    • Analysts are expecting annual earnings growth of 27.1%, which is higher than its past year's earnings growth of 10.8% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.1x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 27% over the next 5 years.
  • This is better than its past earnings growth rate of 11% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 17% 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
OCTV Octave IntelligenceUS$21.778.7%
+US$469.8m		n/an/a
ADEA AdeiaUS$31.5510.3%
+US$324.3m		129.5%PE28.5x
ALOY REalloysUS$14.1728.9%
+US$190.3m		194.0%PS1059.8x
NN NextNavUS$21.025.5%
+US$148.6m		70.5%PS711.1x
CIFR Cipher DigitalUS$24.291.2%
+US$114.5m		486.7%PS47.4x

Latest News

CRM
US$182.55
Salesforce
7D
-12.9%
1Y
-32.9%
CIFR
US$24.29
Cipher Digital
7D
1.2%
1Y
486.7%
PLTR
US$136.47
Palantir Technologies
7D
-15.1%
1Y
3.3%
PANW
US$266.33
Palo Alto Networks
7D
-11.4%
1Y
35.7%
MSFT
US$411.74
Microsoft
7D
-10.6%
1Y
-12.9%
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Summary Microsoft is well-positioned in the AI era, with Azure surpassing $75B annual revenue and an AI run rate at $37B. Azure’s scale, enterprise integration, and diversified AI monetization provide robust long-term growth tailwinds, but capital intensity and margin compression risks persist. MSFT’s valuation appears fair, with much of the AI-driven upside already priced in, limiting the current margin of safety. I maintain a HOLD rating, awaiting further evidence of AI monetization outpacing capital expenditures before increasing portfolio exposure. For more such analyses, check out my profile. Read the full article on Seeking Alpha
ORCL
US$211.82
Oracle
7D
-14.6%
1Y
19.6%
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WULF
US$25.86
TeraWulf
7D
0.8%
1Y
470.9%
Narrative Update • Jun 08

WULF: Expanding 3.8 GW Power Pipeline Will Support Future AI Leasing

Analysts lifted their blended TeraWulf price target to about $58 from roughly $41, citing the company's expanding multi gigawatt power and high performance infrastructure pipeline, growing hyperscaler backed order book, and capital light lease model, which they expect will support faster AI focused revenue scaling. Analyst Commentary Recent research on TeraWulf leans clearly positive, with a series of higher price targets and upbeat initiations centered on the stock's expanding power pipeline, hyperscaler backed contracts, and AI infrastructure focus.
CRWD
US$658.79
CrowdStrike Holdings
7D
-15.8%
1Y
41.9%
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CrowdStrike's analyst fair value estimate has shifted from $535.33 to $707.47 as analysts factor in higher long term P/E assumptions and slightly stronger margin expectations, supported by Q1 earnings, raised FY27 ARR guidance, and growing AI driven cybersecurity demand highlighted across recent research. Analyst Commentary Street research around the latest Q1 print and FY27 outlook presents a mixed picture for CrowdStrike.
ALOY
US$14.17
REalloys
7D
28.9%
1Y
194.0%
APP
US$563.69
AppLovin
7D
-8.1%
1Y
46.9%
NN
US$21.02
NextNav
7D
5.5%
1Y
70.5%
SVCO
US$11.49
Silvaco Group
7D
7.7%
1Y
132.6%
ADEA
US$31.55
Adeia
7D
10.3%
1Y
129.5%
NOW
US$114.19
ServiceNow
7D
-16.0%
1Y
-44.4%
OCTV
US$21.77
Octave Intelligence
7D
8.7%
1Y
n/a
VIDA
US$4.44
VIDA Global
7D
23.0%
1Y
n/a