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U.S. Software Industry Analysis

UpdatedMay 01, 2026
DataAggregated Company Financials
Companies430
  • 7D-2.6%
  • 3M-6.1%
  • 1Y-9.8%
  • YTD-16.3%

Over the last 7 days, the Software industry has dropped 2.6%, driven by a pullback from Microsoft of 4.0%. However, the industry is down 9.8% over the past year. Looking forward, 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
Fri, 01 May 2026US$5.8tUS$680.4bUS$163.2b28.8x35.3x8.5x
Sun, 29 Mar 2026US$5.2tUS$668.4bUS$161.9b28.2x32x7.7x
Tue, 24 Feb 2026US$5.5tUS$661.0bUS$163.6b24.3x33.6x8.3x
Thu, 22 Jan 2026US$6.6tUS$649.0bUS$159.9b30.1x41x10.1x
Sat, 20 Dec 2025US$7.1tUS$645.4bUS$164.7b32.4x42.9x11x
Mon, 17 Nov 2025US$7.4tUS$641.0bUS$159.9b31.2x46x11.5x
Wed, 15 Oct 2025US$7.8tUS$621.4bUS$151.7b34.9x51.6x12.6x
Fri, 12 Sep 2025US$7.6tUS$620.6bUS$151.7b35.2x50.3x12.3x
Sun, 10 Aug 2025US$7.6tUS$613.9bUS$150.0b37.7x50.5x12.3x
Tue, 08 Jul 2025US$7.4tUS$598.9bUS$131.3b43.4x56.4x12.4x
Thu, 05 Jun 2025US$6.8tUS$595.7bUS$131.6b37.2x51.9x11.5x
Sat, 03 May 2025US$6.3tUS$589.0bUS$131.0b33.5x48.3x10.7x
Mon, 31 Mar 2025US$5.7tUS$582.3bUS$130.7b29.5x43.7x9.8x
Wed, 26 Feb 2025US$6.3tUS$580.0bUS$129.5b36.6x48.6x10.8x
Fri, 24 Jan 2025US$6.7tUS$568.2bUS$129.2b42.6x51.9x11.8x
Sun, 22 Dec 2024US$6.6tUS$569.1bUS$128.8b40.8x51.1x11.6x
Tue, 19 Nov 2024US$6.3tUS$566.6bUS$127.1b40.9x49.9x11.2x
Thu, 17 Oct 2024US$6.0tUS$551.7bUS$124.1b38.7x48.7x11x
Sat, 14 Sep 2024US$6.0tUS$552.4bUS$124.0b38.6x48x10.8x
Mon, 12 Aug 2024US$5.6tUS$548.6bUS$121.5b34.7x46.1x10.2x
Wed, 10 Jul 2024US$6.1tUS$530.5bUS$118.1b40.1x52x11.6x
Fri, 07 Jun 2024US$5.2tUS$476.6bUS$107.1b40.2x48.8x11x
Sun, 05 May 2024US$5.2tUS$476.8bUS$103.2b42.3x50.1x10.8x
Tue, 02 Apr 2024US$5.4tUS$465.9bUS$98.3b45.2x54.9x11.6x
Thu, 29 Feb 2024US$5.3tUS$466.6bUS$95.1b42.8x56.1x11.4x
Sat, 27 Jan 2024US$5.5tUS$486.8bUS$82.4b47.4x66.2x11.2x
Mon, 25 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Wed, 22 Nov 2023US$4.9tUS$482.4bUS$79.9b45.4x61.5x10.2x
Fri, 20 Oct 2023US$4.5tUS$477.3bUS$73.7b42.5x61.4x9.5x
Sun, 17 Sep 2023US$4.6tUS$480.1bUS$73.0b45.2x62.5x9.5x
Tue, 15 Aug 2023US$4.5tUS$473.1bUS$70.1b45.3x63.7x9.4x
Thu, 13 Jul 2023US$4.5tUS$460.7bUS$60.1b49.2x75.5x9.9x
Sat, 10 Jun 2023US$4.3tUS$460.1bUS$62.1b43.1x69.8x9.4x
Mon, 08 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Price to Earnings Ratio

65.6x


Total Market Cap: US$4.0tTotal Earnings: US$60.6bTotal Revenue: US$455.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 52.4x202420252026
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 35.3x which is lower than its 3-year average PE of 52.4x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 39% 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 Market0.59%
Tech-0.62%
Software-2.58%
Application Software0.71%
Systems Software-3.90%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 31.2x.
    • Analysts are expecting annual earnings growth of 25.4%, which is higher than its past year's earnings growth of 15.2% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.5x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 15% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 16% 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
PANW Palo Alto NetworksUS$179.323.5%
+US$5.0b		-3.7%PE113.4x
SNPS SynopsysUS$482.605.6%
+US$4.9b		5.1%PE83.6x
CDNS Cadence Design SystemsUS$329.594.9%
+US$4.2b		10.0%PE77.7x
NOW ServiceNowUS$88.314.2%
+US$3.6b		-53.9%PE51.8x
ADBE AdobeUS$246.103.0%
+US$2.9b		-34.3%PE13.8x

Latest News

PLTR
US$139.11
Palantir Technologies
7D
-1.7%
1Y
19.7%

Palantir: Caution Before Earnings Is Advised

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CHKP
US$112.47
Check Point Software Technologies
7D
-16.0%
1Y
-47.5%
MSFT
US$407.78
Microsoft
7D
-4.0%
1Y
-6.3%
CRM
US$176.53
Salesforce
7D
1.9%
1Y
-34.5%

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ORCL
US$161.39
Oracle
7D
-8.4%
1Y
10.9%

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NOW
US$88.31
ServiceNow
7D
4.2%
1Y
-53.9%
APP
US$446.35
AppLovin
7D
-1.7%
1Y
59.7%

APP: Share Repurchases Will Support Future Upside At Current Pricing

Analysts now see AppLovin's fair value holding at $860, with a slightly lower discount rate, a modestly higher revenue growth outlook near 40%, a stable profit margin around 72%, and a marginally lower future P/E closer to 34. Together, these factors support a steady price target narrative rather than a major reset.
ADBE
US$246.10
Adobe
7D
3.0%
1Y
-34.3%

Adobe: Cheap For All The Wrong Reasons

Apr 29
CDNS
US$329.59
Cadence Design Systems
7D
4.9%
1Y
10.0%

CDNS: AI Partnerships And Software Multiples Will Shape Forward Returns

The analyst price target for Cadence Design Systems has been raised by $4.31 to $316.06. Analysts cite recent target revisions across the Street that balance higher long term earnings estimates with a more conservative P/E multiple amid software sector volatility and AI related demand expectations.
NBIS
US$138.23
Nebius Group
7D
-12.0%
1Y
477.8%

Nebius: The Neocloud Window Is Temporary

Apr 28
SNPS
US$482.60
Synopsys
7D
5.6%
1Y
5.1%
CRCL
US$90.88
Circle Internet Group
7D
-9.1%
1Y
n/a

Circle: High Upside As Arc Payments Scale

Apr 27
PANW
US$179.32
Palo Alto Networks
7D
3.5%
1Y
-3.7%

PANW: AI Security Enforcement And CEO Share Buying Will Drive Repricing

The analyst price target for Palo Alto Networks has been adjusted slightly higher to $206.14, with analysts pointing to fresh bullish coverage, CEO share purchases, and views that recent AI related cybersecurity volatility and multiple compression have pushed expectations to more conservative levels. Analyst Commentary Recent Street research on Palo Alto Networks reflects active debate around how to value the business after sector wide volatility tied to AI and cybersecurity headlines.
MSTR
US$165.45
Strategy
7D
-4.1%
1Y
-56.6%

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ZM
US$97.15
Zoom Communications
7D
7.9%
1Y
25.8%

ZM: AI Integration And Anthropic Stake Are Expected To Support Steady Outlook

Analysts have made only modest adjustments to Zoom Communications' price targets, with figures now ranging from about $74 to $115, as they factor in recent Q4 execution, the Claude Cowork launch, and the potential impact of the Anthropic investment on future growth drivers and margins. Analyst Commentary Recent research on Zoom Communications reflects a split view, with some analysts focusing on AI driven upside and execution, while others question how the company stacks up against faster growing software peers.
AUR
US$5.88
Aurora Innovation
7D
22.0%
1Y
-14.5%