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U.S. Software Industry Analysis

UpdatedJan 02, 2026
DataAggregated Company Financials
Companies432
  • 7D-1.7%
  • 3M-9.7%
  • 1Y9.0%
  • YTDn/a

Over the last 7 days, the Software industry has dropped 1.7%, driven by declines in Microsoft and Palantir Technologies of 0.8% and 5.8%, respectively. In the past year, the industry has gained 9.0%. 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
Fri, 02 Jan 2026US$7.1tUS$645.3bUS$164.7b31.8x43x11x
Sun, 30 Nov 2025US$7.1tUS$640.4bUS$161.2b31.8x44x11.1x
Tue, 28 Oct 2025US$7.9tUS$621.4bUS$151.9b33.9x52x12.7x
Thu, 25 Sep 2025US$7.8tUS$620.8bUS$151.7b36.3x51.7x12.6x
Sat, 23 Aug 2025US$7.3tUS$615.8bUS$150.8b35x48.4x11.9x
Mon, 21 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.3x12.6x
Wed, 18 Jun 2025US$7.1tUS$598.9bUS$131.1b40.5x54.2x11.9x
Fri, 16 May 2025US$6.7tUS$591.1bUS$131.5b32.9x51.1x11.4x
Sun, 13 Apr 2025US$5.7tUS$581.3bUS$131.8b29.3x42.9x9.7x
Tue, 11 Mar 2025US$6.0tUS$582.3bUS$129.6b31.7x45.9x10.2x
Thu, 06 Feb 2025US$6.5tUS$585.9bUS$132.4b42.2x49.1x11.1x
Sat, 04 Jan 2025US$6.4tUS$569.1bUS$129.0b40.3x49.2x11.2x
Mon, 02 Dec 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Wed, 30 Oct 2024US$6.1tUS$552.9bUS$124.3b38.9x49.3x11.1x
Fri, 27 Sep 2024US$6.1tUS$552.4bUS$124.0b38.3x48.8x11x
Sun, 25 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.8x10.6x
Tue, 23 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Thu, 20 Jun 2024US$5.9tUS$531.3bUS$118.1b39.6x49.7x11x
Sat, 18 May 2024US$5.3tUS$474.3bUS$104.8b45.1x51x11.3x
Mon, 15 Apr 2024US$5.3tUS$466.4bUS$98.4b41.9x54.2x11.4x
Wed, 13 Mar 2024US$5.3tUS$470.2bUS$98.5b46.6x54.1x11.3x
Fri, 09 Feb 2024US$5.4tUS$464.0bUS$89.8b42.9x59.9x11.6x
Sun, 07 Jan 2024US$5.0tUS$486.2bUS$82.8b45.1x60.3x10.3x
Tue, 05 Dec 2023US$5.1tUS$485.2bUS$81.9b44.7x62x10.5x
Thu, 02 Nov 2023US$4.5tUS$484.8bUS$79.0b42.3x57.2x9.3x
Sat, 30 Sep 2023US$4.4tUS$477.4bUS$73.2b44.8x59.7x9.2x
Mon, 28 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Wed, 26 Jul 2023US$4.7tUS$461.1bUS$60.2b47.9x77.6x10.1x
Fri, 23 Jun 2023US$4.4tUS$460.5bUS$62.3b43.7x70.8x9.6x
Sun, 21 May 2023US$4.2tUS$457.4bUS$61.0b39.9x68.1x9.1x
Tue, 18 Apr 2023US$3.9tUS$453.6bUS$60.5b43.6x65.1x8.7x
Thu, 16 Mar 2023US$3.7tUS$453.8bUS$60.0b41.5x60.9x8.1x
Sat, 11 Feb 2023US$3.6tUS$437.0bUS$57.8b42.8x62.6x8.3x
Mon, 09 Jan 2023US$3.1tUS$434.4bUS$60.2b39.9x52x7.2x
Price to Earnings Ratio

52x


Total Market Cap: US$3.1tTotal Earnings: US$60.2bTotal Revenue: US$434.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55x202420252026
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 43.0x which is lower than its 3-year average PE of 55.0x.
  • The industry is trading close to its 3-year average PS ratio of 10.6x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% 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-1.43%
Tech-1.88%
Software-1.69%
Systems Software-1.08%
Application Software-2.96%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 24.3%, which is lower than the prior year's growth of 42.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 40.1x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • However this is lower than its past earnings growth rate of 42% 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
QBTS D-Wave QuantumUS$26.153.4%
+US$301.1m		186.1%PS379.2x
HUBS HubSpotUS$401.300.8%
+US$164.5m		-42.9%PS7x
XZO Exzeo GroupUS$24.257.5%
+US$153.4m		n/aPE31.8x
BTDR Bitdeer Technologies GroupUS$11.214.4%
+US$111.3m		-57.0%PS5.7x
MNDY monday.comUS$147.561.2%
+US$91.8m		-37.3%PE116.9x

Latest News

INTU
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Intuit
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1Y
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ORCL
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Oracle
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1Y
17.2%
ONTF
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ON24
7D
36.5%
1Y
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QBTS
US$26.15
D-Wave Quantum
7D
3.4%
1Y
186.1%
CRWD
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CrowdStrike Holdings
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1Y
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CFLT
US$30.24
Confluent
7D
0.4%
1Y
3.3%

CFLT: Cloud Demand And Sale Prospects Will Drive Shares Higher

Analysts have nudged our Confluent fair value estimate higher to approximately $34 from about $31, citing stabilizing cloud consumption, stronger than expected Confluent Cloud driven upside, and improving execution. This has led to a wave of Street price target increases into the high $20s to around $30.
ADEA
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Adeia
7D
1.8%
1Y
23.4%
XZO
US$24.25
Exzeo Group
7D
7.5%
1Y
n/a
MNDY
US$147.56
monday.com
7D
1.2%
1Y
-37.3%

MNDY: Upmarket And AI Expansion Will Drive Long Term Revenue Mix Shift

Analysts have reduced their blended price target for Monday.com to approximately $305 from about $384. They cite slower revenue growth, more cautious near term execution, and elongated sales cycles, while also highlighting resilient upmarket momentum, expanding margins, and multi product and AI driven opportunities that support the longer term outlook.
APP
US$673.82
AppLovin
7D
-5.7%
1Y
92.2%

Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%

Dec 19
Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%
PLTR
US$177.75
Palantir Technologies
7D
-5.8%
1Y
122.5%
MSFT
US$483.62
Microsoft
7D
-0.8%
1Y
14.2%

MSFT: Expanded AI Partnerships And Infrastructure Will Drive Durable Cloud Leadership

Analysts have nudged their Microsoft price target slightly higher to approximately $650, reflecting confidence that the company's broadened AI partnerships, resilient Azure growth, and durable margin profile justify modestly stronger long term revenue and earnings assumptions despite rising capex and hyperscaler caution. Analyst Commentary Street research remains broadly constructive on Microsoft, with a cluster of recent notes highlighting the company as a primary beneficiary of accelerating AI adoption, robust cloud demand, and deepened model partnerships, even as a minority of voices urge greater caution around hyperscaler capital intensity and returns.
HUBS
US$401.30
HubSpot
7D
0.8%
1Y
-42.9%

HUBS: AI-Driven Multi-Hub Adoption Will Support Long-Term Upside Despite Sector Headwinds

Analysts have modestly reduced their fair value estimate for HubSpot to approximately $580 from about $585 per share, reflecting a wave of lowered price targets as they balance still-strong double digit growth and AI driven opportunities against softer reacceleration expectations, competitive AI headwinds, and broader software multiple compression. Analyst Commentary Street research reflects a constructive but more measured stance on HubSpot, with many firms trimming price targets while reiterating positive long term views on growth, profitability, and AI optionality.
BTDR
US$11.21
Bitdeer Technologies Group
7D
4.4%
1Y
-57.0%

BTDR: Expanding Power Capacity Will Drive Self Mining Upside Amid Power Scarcity

Analysts have modestly trimmed their fair value estimate for Bitdeer Technologies Group to approximately $34.15 from about $34.79 per share. This reflects a slightly higher discount rate, even as they highlight continued upside from the company’s expanding power capacity, accelerating self-mining revenue, and diversified growth opportunities.
PANW
US$184.20
Palo Alto Networks
7D
-2.3%
1Y
0.5%

PANW: AI Platform And M&A Expansion Will Drive Long-Term Share Gains

The analyst price target for Palo Alto Networks has edged higher by $0 to approximately $225 per share, as analysts balance concerns over decelerating growth and acquisition costs with confidence in the company’s expanding AI driven security platform, strategic M&A, and growing next generation security revenue opportunity. Analyst Commentary Street research on Palo Alto Networks remains divided, with most firms constructive on the company’s long term AI and platform strategy while a minority flag the risk that revenue growth deceleration and rich valuation could cap upside.
MSTR
US$151.95
Strategy
7D
-4.3%
1Y
-55.3%