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U.S. Software Industry Analysis

UpdatedMar 26, 2026
DataAggregated Company Financials
Companies422
  • 7D-4.7%
  • 3M-24.7%
  • 1Y-9.7%
  • YTD-21.5%

Over the last 7 days, the Software industry has dropped 4.7%, driven by Microsoft declining 4.6%. In contrast, Hut 8 has gained 13%. However, the industry is down 9.7% 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?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 26 Mar 2026US$5.4tUS$668.4bUS$162.0b27.8x33.5x8.1x
Sat, 21 Feb 2026US$5.7tUS$661.0bUS$163.6b25.4x34.6x8.6x
Mon, 19 Jan 2026US$6.7tUS$648.9bUS$159.8b31.6x41.9x10.3x
Wed, 17 Dec 2025US$7.0tUS$645.9bUS$164.8b32.7x42.4x10.8x
Fri, 14 Nov 2025US$7.5tUS$640.9bUS$158.9b31.5x47x11.7x
Sun, 12 Oct 2025US$7.7tUS$621.4bUS$151.7b34.8x50.7x12.4x
Tue, 09 Sep 2025US$7.3tUS$618.2bUS$151.4b36x48.3x11.8x
Thu, 07 Aug 2025US$7.6tUS$611.0bUS$147.7b38.7x51.8x12.5x
Sat, 05 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Mon, 02 Jun 2025US$6.8tUS$594.2bUS$131.7b36.8x51.4x11.4x
Wed, 30 Apr 2025US$5.9tUS$581.7bUS$131.7b31.6x45.1x10.2x
Fri, 28 Mar 2025US$5.9tUS$582.3bUS$130.8b29.6x45.4x10.2x
Sun, 23 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Tue, 21 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.8x11.3x
Thu, 19 Dec 2024US$6.8tUS$569.1bUS$128.8b40.8x52.7x11.9x
Sat, 16 Nov 2024US$6.5tUS$566.7bUS$127.0b41.4x51x11.4x
Mon, 14 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Wed, 11 Sep 2024US$5.7tUS$552.2bUS$123.6b35.9x45.9x10.3x
Fri, 09 Aug 2024US$5.4tUS$548.2bUS$122.0b36x44.5x9.9x
Sun, 07 Jul 2024US$6.2tUS$530.5bUS$118.1b40.9x52.3x11.6x
Tue, 04 Jun 2024US$5.1tUS$476.0bUS$106.9b39.9x47.8x10.7x
Thu, 02 May 2024US$5.0tUS$476.4bUS$102.5b40.7x49x10.6x
Sat, 30 Mar 2024US$5.4tUS$465.9bUS$98.2b45.1x55x11.6x
Mon, 26 Feb 2024US$5.3tUS$466.5bUS$93.1b43.9x57.1x11.4x
Wed, 24 Jan 2024US$5.4tUS$486.2bUS$82.2b44.8x65.6x11.1x
Fri, 22 Dec 2023US$5.1tUS$486.1bUS$82.9b44.3x61.6x10.5x
Sun, 19 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x61.4x10.2x
Tue, 17 Oct 2023US$4.6tUS$477.3bUS$73.7b44.8x62.1x9.6x
Thu, 14 Sep 2023US$4.6tUS$476.3bUS$73.0b45.2x63.5x9.7x
Sat, 12 Aug 2023US$4.4tUS$472.9bUS$70.1b45.8x63x9.3x
Mon, 10 Jul 2023US$4.5tUS$460.7bUS$60.4b47x73.8x9.7x
Wed, 07 Jun 2023US$4.4tUS$459.9bUS$62.0b42.8x71.1x9.6x
Fri, 05 May 2023US$3.9tUS$454.1bUS$60.8b38.9x64.2x8.6x
Sun, 02 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.4x8.7x
Price to Earnings Ratio

65.4x


Total Market Cap: US$4.0tTotal Earnings: US$60.6bTotal Revenue: US$453.7bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.3x202420252026
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 33.5x which is lower than its 3-year average PE of 53.3x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.1x.
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 Market-0.15%
Tech-0.52%
Software-4.66%
Application Software-3.47%
Systems Software-5.20%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 18.3x.
    • Analysts are expecting annual earnings growth of 24.9%, which is higher than its past year's earnings growth of 18.7% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.9x.
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 19% 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
HUT Hut 8US$55.6212.7%
+US$694.2m		330.2%PS26.2x
WULF TeraWulfUS$16.8610.2%
+US$661.5m		479.4%PS42.4x
YOU Clear SecureUS$54.4812.2%
+US$589.8m		101.4%PE49.6x
MRLN MerlinUS$13.5545.1%
+US$544.8m		35.1%PS259.3x
AUR Aurora InnovationUS$4.326.4%
+US$506.7m		-39.3%PS2806.3x

Latest News

CRWD
US$385.86
CrowdStrike Holdings
7D
-11.5%
1Y
3.9%
PANW
US$153.22
Palo Alto Networks
7D
-9.7%
1Y
-12.2%

PANW: AI Security Platform And Geopolitical Role Will Drive Future Repricing

Analysts made a slight downward adjustment to the price target for Palo Alto Networks, trimming fair value estimates by about $0.41 to $207.75 as they balanced a wave of reduced targets from multiple firms with ongoing views that the company remains exposed to key cybersecurity and AI related demand drivers. Analyst Commentary Recent research on Palo Alto Networks reflects a split view, with many price targets moving lower while ratings often remain positive.
CRCL
US$103.86
Circle Internet Group
7D
-21.8%
1Y
n/a
ZM
US$78.11
Zoom Communications
7D
2.2%
1Y
0.4%

ZM: AI Expansion And Anthropic Investment Are Expected To Support Upside

Analysts have modestly adjusted Zoom Communications' price targets, with moves ranging from a $5 cut to $100 to a $6 lift to $115. The changes reflect mixed views on its Q4 execution, investment in AI and product expansion, and the trade off between a pause in near term margins and longer term growth potential.
INTU
US$426.86
Intuit
7D
-4.5%
1Y
-30.6%

INTU: AI Partnerships And Embedded Agents Will Support Future Product Usage

The analyst price target for Intuit has been raised slightly to $610.16 from $605.52, as analysts highlight resilient QuickBooks and TurboTax franchises, perceived overstatements of AI disruption risk, and continued AI driven product traction. These factors support modestly higher revenue growth and profit margin assumptions, alongside a slightly lower future P/E multiple.
HUT
US$55.62
Hut 8
7D
12.7%
1Y
330.2%
MSFT
US$371.04
Microsoft
7D
-4.6%
1Y
-5.0%
ORCL
US$146.02
Oracle
7D
-4.5%
1Y
-1.2%

ORCL: AI Data Center Spending And Margins Will Shape Cash Generation

Oracle's analyst fair value estimate has moved from about $193.08 to $155.00 as analysts factor in lower profit margin assumptions along with stronger modeled revenue growth and generally supportive post earnings research. Analyst Commentary Street research around Oracle following the fiscal Q3 report reflects a mix of renewed confidence in the business trajectory and recalibration of expectations.
WULF
US$16.86
TeraWulf
7D
10.2%
1Y
479.4%
CRM
US$181.96
Salesforce
7D
-6.4%
1Y
-35.2%

CRM: AI Execution Debt-Funded Buybacks And AI Fears Will Shape Risk Balance

Analysts have kept the fair value estimate for Salesforce steady at $190, while slightly adjusting assumptions such as discount rate, revenue growth, profit margin, and future P/E to reflect mixed Q4 trends, widespread price target cuts across the Street, and increasing focus on the potential of Agentforce and AI driven offerings, alongside softer near term organic growth expectations. Analyst Commentary Street research around the latest Q4 report has turned more cautious, even as many firms still see potential in Salesforce's AI and Agentforce roadmap.
YOU
US$54.48
Clear Secure
7D
12.2%
1Y
101.4%
MSTR
US$139.13
Strategy
7D
-1.0%
1Y
-57.8%
CIFR
US$15.88
Cipher Digital
7D
8.2%
1Y
492.5%

CIFR: Long Duration AI Leases Will Define Post Mining Transition Outlook

Analysts trimmed their price targets on Cipher Digital to a range of about $20 to $32, reflecting lower long term revenue and EBITDA assumptions tied to reduced hash pricing and higher spending, while still highlighting the potential impact of long duration leasing income from large counterparties. Analyst Commentary Recent research on Cipher Digital highlights a mix of reduced expectations for core bitcoin mining operations and continued interest in the potential of its leasing model.
NOW
US$103.06
ServiceNow
7D
-9.4%
1Y
-38.5%

NOW: AI Platform Adoption And Buybacks Will Drive Long Term Upside

Analysts have trimmed their fair value estimate for ServiceNow to $130.18 from $133.26, citing slightly higher discount rate assumptions, along with modest adjustments to revenue growth, profit margin, and future P/E expectations. What's in the News ServiceNow issued guidance for GAAP subscription revenue of US$3,650 million to US$3,655 million for Q1 2026 and US$15,530 million to US$15,570 million for full year 2026, giving investors a concrete view of management’s current revenue expectations (Corporate guidance).
AUR
US$4.32
Aurora Innovation
7D
6.4%
1Y
-39.3%