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U.S. Software Industry Analysis

UpdatedJun 07, 2025
DataAggregated Company Financials
Companies405
  • 7D2.3%
  • 3M16.7%
  • 1Y22.6%
  • YTD9.4%

In the last week, the Software industry is up 2.3%, with Microsoft up 2.2%. This means that the industry has gained 23% over the past year. 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
Sun, 08 Jun 2025US$6.9tUS$595.8bUS$131.6b40.1x52.2x11.5x
Tue, 06 May 2025US$6.4tUS$589.0bUS$131.0b33.5x48.9x10.9x
Thu, 03 Apr 2025US$5.7tUS$581.5bUS$131.8b30.3x43.6x9.9x
Sat, 01 Mar 2025US$6.1tUS$580.7bUS$129.1b34.5x47.4x10.5x
Mon, 27 Jan 2025US$6.7tUS$568.2bUS$129.2b42.3x51.7x11.8x
Wed, 25 Dec 2024US$6.6tUS$569.1bUS$128.8b41.2x51.4x11.6x
Fri, 22 Nov 2024US$6.4tUS$566.9bUS$127.2b41.5x50.5x11.3x
Sun, 20 Oct 2024US$6.1tUS$551.7bUS$124.1b37.6x48.9x11x
Tue, 17 Sep 2024US$6.0tUS$552.4bUS$124.0b38.9x48.2x10.8x
Thu, 15 Aug 2024US$5.7tUS$548.8bUS$121.5b35.2x46.8x10.4x
Sat, 13 Jul 2024US$6.0tUS$530.5bUS$118.4b40.7x50.7x11.3x
Mon, 10 Jun 2024US$5.2tUS$477.7bUS$107.2b39.9x48.8x11x
Wed, 08 May 2024US$5.2tUS$477.1bUS$103.5b44.2x50.2x10.9x
Fri, 05 Apr 2024US$5.4tUS$465.9bUS$98.4b43.2x54.4x11.5x
Sun, 03 Mar 2024US$5.5tUS$468.6bUS$98.1b42.9x55.6x11.6x
Tue, 30 Jan 2024US$5.4tUS$486.8bUS$82.4b48x66.1x11.2x
Thu, 28 Dec 2023US$5.2tUS$486.1bUS$82.9b46.5x62.5x10.6x
Sat, 25 Nov 2023US$5.0tUS$482.6bUS$79.9b46.4x62.4x10.3x
Mon, 23 Oct 2023US$4.4tUS$477.3bUS$73.7b42x60.3x9.3x
Wed, 20 Sep 2023US$4.5tUS$480.1bUS$73.0b45.5x62.3x9.5x
Fri, 18 Aug 2023US$4.4tUS$473.4bUS$70.3b43.5x62.6x9.3x
Sun, 16 Jul 2023US$4.6tUS$460.7bUS$60.1b48.3x77x10x
Tue, 13 Jun 2023US$4.4tUS$460.1bUS$62.1b44.5x71x9.6x
Thu, 11 May 2023US$4.0tUS$456.3bUS$60.2b38.1x67x8.8x
Sat, 08 Apr 2023US$3.9tUS$453.6bUS$60.5b43.3x65x8.7x
Mon, 06 Mar 2023US$3.6tUS$453.1bUS$59.7b43.6x61.1x8x
Wed, 01 Feb 2023US$3.5tUS$435.5bUS$57.9b43.2x60.2x8x
Fri, 30 Dec 2022US$3.3tUS$434.4bUS$60.2b42.2x54.4x7.5x
Sun, 27 Nov 2022US$3.4tUS$430.5bUS$62.0b45.8x54.6x7.9x
Tue, 25 Oct 2022US$3.3tUS$412.8bUS$64.3b38.6x50.9x7.9x
Thu, 22 Sep 2022US$3.3tUS$413.7bUS$64.8b38.8x51.2x8x
Sat, 20 Aug 2022US$4.0tUS$410.4bUS$66.5b46.9x59.5x9.6x
Mon, 18 Jul 2022US$3.5tUS$408.7bUS$67.9b37.4x52.2x8.7x
Wed, 15 Jun 2022US$3.4tUS$409.2bUS$68.1b36.3x49.7x8.3x
Price to Earnings Ratio

49.7x


Total Market Cap: US$3.4tTotal Earnings: US$68.1bTotal Revenue: US$409.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.7x202320242025
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 52.2x which is lower than its 3-year average PE of 55.7x.
  • The 3-year average PS ratio of 9.9x is lower than the industry's current PS ratio of 11.5x.
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 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 Market1.75%
Tech3.23%
Software2.29%
Systems Software2.60%
Application Software1.61%
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 (25.9%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 37.9x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 26% 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
MSFT MicrosoftUS$470.382.2%
+US$74.5b		11.0%PE36.2x
ORCL OracleUS$174.025.1%
+US$23.8b		38.2%PE40.1x
CRM SalesforceUS$274.513.4%
+US$8.7b		13.5%PE42.3x
APP AppLovinUS$417.896.3%
+US$8.4b		410.2%PE73.7x
INTU IntuitUS$771.582.4%
+US$5.1b		34.4%PE62.1x
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Braze

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IOT

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Samsara

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1Y

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PONY

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Pony AI

7D

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1Y

n/a

CRM

US$274.51

Salesforce

7D

3.4%

1Y

13.5%

INTU

US$771.58

Intuit

7D

2.4%

1Y

34.4%

ZS

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Zscaler

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CRWD

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ASAN

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Asana

7D

-16.9%

1Y

10.2%

ORCL

US$174.02

Oracle

7D

5.1%

1Y

38.2%

MSFT

US$470.38

Microsoft

7D

2.2%

1Y

11.0%

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Unity Software

7D

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1Y

45.5%

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PLTR

US$127.72

Palantir Technologies

7D

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1Y

447.9%

PANW

US$199.60

Palo Alto Networks

7D

3.7%

1Y

32.2%