Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Software Industry Analysis

UpdatedMar 12, 2026
DataAggregated Company Financials
Companies424
  • 7D0.4%
  • 3M-19.3%
  • 1Y-0.4%
  • YTD-15.3%

The Software is pretty flat in the last 7 days, but Oracle has stood out, gaining 7.1%. In line with that, the industry has also been flat over the past 12 months. 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, 13 Mar 2026US$5.8tUS$665.5bUS$160.9b28.1x36.2x8.8x
Sun, 08 Feb 2026US$5.7tUS$662.4bUS$162.0b26.9x35x8.6x
Tue, 06 Jan 2026US$6.9tUS$645.3bUS$164.7b32.3x42.1x10.8x
Thu, 04 Dec 2025US$7.1tUS$640.7bUS$161.1b31.7x43.8x11x
Sat, 01 Nov 2025US$7.8tUS$636.8bUS$158.3b34.7x49.3x12.2x
Mon, 29 Sep 2025US$7.7tUS$620.9bUS$151.9b36x51x12.5x
Wed, 27 Aug 2025US$7.3tUS$615.8bUS$150.8b35x48.6x11.9x
Fri, 25 Jul 2025US$7.5tUS$597.2bUS$130.9b42.7x57.1x12.5x
Sun, 22 Jun 2025US$7.1tUS$599.0bUS$131.1b40.7x53.9x11.8x
Tue, 20 May 2025US$6.7tUS$591.1bUS$131.4b36.1x51.3x11.4x
Thu, 17 Apr 2025US$5.7tUS$580.5bUS$131.7b29.9x43.3x9.8x
Sat, 15 Mar 2025US$5.7tUS$582.9bUS$131.3b28.7x43.3x9.7x
Mon, 10 Feb 2025US$6.5tUS$586.2bUS$132.4b43.2x49x11.1x
Wed, 08 Jan 2025US$6.5tUS$569.1bUS$129.0b38.4x50.2x11.4x
Fri, 06 Dec 2024US$6.8tUS$566.4bUS$127.7b42.8x53.2x12x
Sun, 03 Nov 2024US$6.0tUS$561.9bUS$126.3b39x47.5x10.7x
Tue, 01 Oct 2024US$6.0tUS$552.4bUS$124.0b38.7x48.8x10.9x
Thu, 29 Aug 2024US$5.8tUS$550.3bUS$121.8b36.8x47.6x10.5x
Sat, 27 Jul 2024US$5.7tUS$532.0bUS$117.8b40.7x48.2x10.7x
Mon, 24 Jun 2024US$5.9tUS$531.3bUS$118.0b40.6x50.1x11.1x
Wed, 22 May 2024US$5.4tUS$474.6bUS$105.4b43x51.3x11.4x
Fri, 19 Apr 2024US$5.1tUS$466.6bUS$98.4b42x51.9x10.9x
Sun, 17 Mar 2024US$5.3tUS$471.0bUS$98.1b45.8x54.4x11.3x
Tue, 13 Feb 2024US$5.4tUS$464.2bUS$90.0b41.8x60.3x11.7x
Thu, 11 Jan 2024US$5.1tUS$486.2bUS$82.2b45.5x62.4x10.5x
Sat, 09 Dec 2023US$5.0tUS$485.6bUS$82.5b47.1x60.8x10.3x
Mon, 06 Nov 2023US$4.7tUS$481.2bUS$79.0b43.3x58.9x9.7x
Wed, 04 Oct 2023US$4.4tUS$477.3bUS$73.4b44.2x60.6x9.3x
Fri, 01 Sep 2023US$4.6tUS$475.5bUS$72.4b44.9x63.3x9.6x
Sun, 30 Jul 2023US$4.6tUS$466.2bUS$64.9b47.7x70.3x9.8x
Tue, 27 Jun 2023US$4.4tUS$460.6bUS$62.3b43.8x69.9x9.4x
Thu, 25 May 2023US$4.1tUS$458.2bUS$61.4b40.5x67x9x
Sat, 22 Apr 2023US$3.9tUS$453.7bUS$60.6b42.4x64.4x8.6x
Mon, 20 Mar 2023US$3.8tUS$453.6bUS$59.7b42.2x63.5x8.4x
Price to Earnings Ratio

63.5x


Total Market Cap: US$3.8tTotal Earnings: US$59.7bTotal Revenue: US$453.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.7x202420252026
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 36.2x which is lower than its 3-year average PE of 53.7x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.8x.
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-1.47%
Tech0.73%
Software0.42%
Systems Software1.16%
Application Software-1.16%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 14.1x.
    • Analysts are expecting annual earnings growth of 24.7%, which is higher than its past year's earnings growth of 20.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 40.0x.
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 20% 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
ORCL OracleUS$159.162.8%
+US$12.9b		7.8%PE28.3x
PANW Palo Alto NetworksUS$168.133.0%
+US$4.1b		-4.6%PE107x
CRWD CrowdStrike HoldingsUS$441.543.6%
+US$3.9b		32.8%PS23.3x
NBIS Nebius GroupUS$108.0413.0%
+US$3.1b		312.8%PE942.6x
CRCL Circle Internet GroupUS$114.188.0%
+US$2.5b		n/aPS10.1x

Latest News

ORCL
US$159.16
Oracle
7D
2.8%
1Y
7.8%
APP
US$449.40
AppLovin
7D
-11.6%
1Y
65.2%
SNPS
US$418.72
Synopsys
7D
-5.3%
1Y
-2.3%
NBIS
US$108.04
Nebius Group
7D
13.0%
1Y
312.8%
FICO
US$1,093.62
Fair Isaac
7D
-25.9%
1Y
-37.3%
MSFT
US$401.91
Microsoft
7D
-2.1%
1Y
6.1%
WDAY
US$134.14
Workday
7D
-8.9%
1Y
-43.5%

WDAY: Returning Leader And AI Investment Reset Will Shape Next Phase

Our updated Workday price target moves lower to $184.73 from $231.17 as analysts cut targets across the board, citing decelerating sales, softer long-term guidance, higher investment in AI and leadership changes that introduce more uncertainty around growth and margins. Analyst Commentary Street research has turned more cautious on Workday, with a broad reset of expectations after Q4 results, lowered long term targets and the CEO transition.
IOT
US$31.86
Samsara
7D
7.7%
1Y
-14.2%
PANW
US$168.13
Palo Alto Networks
7D
3.0%
1Y
-4.6%

PANW: AI Security Consolidation And Geopolitical Positioning Will Drive Future Repricing

The analyst price target for Palo Alto Networks has shifted modestly lower to $208, with analysts citing mixed reactions to recent results, a slightly lower profit margin outlook, and a higher assumed future P/E multiple. These factors are partly offset by views that AI driven security demand and broad exposure across key cybersecurity trends continue to support the story.
DDOG
US$127.16
Datadog
7D
3.9%
1Y
28.9%
INTU
US$435.13
Intuit
7D
-6.8%
1Y
-25.1%

INTU: AI Adoption In Tax And Small Business Will Support Future Usage

Our updated fair value estimate for Intuit moves lower to align with the Street's reset in price targets toward the $500 to $600 range, as analysts factor in slightly softer growth and margin assumptions while still highlighting resilient tax and small business franchises and emerging AI traction despite recent AI related concerns. Analyst Commentary Street research on Intuit has shifted toward lower price targets clustered around the $500 to $600 range, but with many firms still maintaining positive ratings.
CRCL
US$114.18
Circle Internet Group
7D
8.0%
1Y
n/a

Circle Internet Group (CRCL): The Programmable Dollar Powerhouse – Post-IPO Momentum and Stablecoin Dominance.

Circle Internet Group is currently defining the "Public Fintech 2.0" era, serving as the bridge between traditional finance and blockchain liquidity. Trading at $111.97 as of the March 9, 2026 close, the stock surged nearly 10% today following a breakout past its 50-day moving average.
NOW
US$112.97
ServiceNow
7D
-6.2%
1Y
-30.4%
CRWD
US$441.54
CrowdStrike Holdings
7D
3.6%
1Y
32.8%

CRWD: AI Security Platform And Identity Expansion Will Temper Crowded Trade Fears

Narrative Update on CrowdStrike Holdings Our updated view reflects a lower analyst price target of $374.82, down from $414.96, as analysts recalibrate revenue growth, profit margin and future P/E assumptions, while still highlighting strong Q4 execution, resilient ARR trends and ongoing AI and platform tailwinds across recent research. Analyst Commentary Across recent research, you are seeing a mix of optimism on CrowdStrike's execution and platform, paired with a clear reset in expectations as many firms trim price targets.
ADBE
US$269.78
Adobe
7D
-4.2%
1Y
-28.6%

ADBE: AI Adoption And Generative Credits Will Drive Future Revenue Milestones

Our updated view trims Adobe's fair value estimate from $447.56 to $408.47, reflecting a lower assumed future P/E of about 21.2x. This is in line with a wave of reduced Street price targets around $290 to $375 and analyst concerns about competitive pressure, AI related execution risks, and more muted near term upside for the shares.
PLTR
US$153.50
Palantir Technologies
7D
0.5%
1Y
92.8%

Analysis of Palantir Technologies: Commercial Acceleration and Financial Maturity

Palantir Technologies Inc. has evolved from a specialized government contractor into a broad-market software provider.