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U.S. Software Industry Analysis

UpdatedDec 25, 2025
DataAggregated Company Financials
Companies430
  • 7D3.6%
  • 3M-6.9%
  • 1Y7.8%
  • YTD11.9%

The Software industry is up 3.6% in the last week, with Microsoft up 2.5%. This means that the industry has gained 7.8% over the past year. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

Has the U.S. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 25 Dec 2025US$7.2tUS$645.4bUS$164.7b31.9x43.8x11.2x
Sat, 22 Nov 2025US$6.8tUS$640.4bUS$160.2b29.6x42.7x10.7x
Mon, 20 Oct 2025US$7.7tUS$621.4bUS$151.7b34.9x50.8x12.4x
Wed, 17 Sep 2025US$7.7tUS$620.9bUS$151.9b34.7x50.9x12.5x
Fri, 15 Aug 2025US$7.5tUS$614.4bUS$153.3b36x49.2x12.3x
Sun, 13 Jul 2025US$7.3tUS$598.9bUS$131.4b41.8x55.6x12.2x
Tue, 10 Jun 2025US$6.9tUS$595.8bUS$131.6b40.9x52.7x11.7x
Thu, 08 May 2025US$6.3tUS$589.6bUS$131.3b33.8x48.2x10.7x
Sat, 05 Apr 2025US$5.5tUS$581.4bUS$131.8b28.8x42x9.5x
Mon, 03 Mar 2025US$6.2tUS$580.6bUS$129.1b34.5x47.6x10.6x
Wed, 29 Jan 2025US$6.6tUS$576.9bUS$129.4b43.6x51.3x11.5x
Fri, 27 Dec 2024US$6.6tUS$569.1bUS$128.8b41.1x51.5x11.6x
Sun, 24 Nov 2024US$6.5tUS$567.3bUS$127.2b42.4x51.3x11.5x
Tue, 22 Oct 2024US$6.1tUS$551.7bUS$124.1b37.5x48.9x11x
Thu, 19 Sep 2024US$6.0tUS$552.4bUS$124.0b38.7x48.6x10.9x
Sat, 17 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.8x10.6x
Mon, 15 Jul 2024US$6.0tUS$530.6bUS$118.4b40.7x50.9x11.4x
Wed, 12 Jun 2024US$5.3tUS$477.8bUS$107.3b40x49.2x11x
Fri, 10 May 2024US$5.2tUS$474.1bUS$104.8b44.3x49.6x11x
Sun, 07 Apr 2024US$5.4tUS$466.0bUS$98.3b43.2x54.8x11.6x
Tue, 05 Mar 2024US$5.4tUS$468.6bUS$98.1b43.2x55.4x11.6x
Thu, 01 Feb 2024US$5.5tUS$496.1bUS$87.9b46.3x62.9x11.1x
Sat, 30 Dec 2023US$5.2tUS$486.2bUS$82.8b47.3x62.5x10.7x
Mon, 27 Nov 2023US$5.0tUS$482.6bUS$79.9b46.4x62.4x10.3x
Wed, 25 Oct 2023US$4.5tUS$477.3bUS$73.7b41.9x60.5x9.3x
Fri, 22 Sep 2023US$4.4tUS$480.7bUS$73.0b45.1x60.4x9.2x
Sun, 20 Aug 2023US$4.3tUS$474.4bUS$70.6b42.8x61.5x9.2x
Tue, 18 Jul 2023US$4.6tUS$460.7bUS$60.1b49x77x10x
Thu, 15 Jun 2023US$4.5tUS$460.1bUS$62.1b44.6x71.9x9.7x
Sat, 13 May 2023US$4.0tUS$456.8bUS$61.1b39.2x65.3x8.7x
Mon, 10 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x65x8.7x
Wed, 08 Mar 2023US$3.6tUS$453.2bUS$59.7b43.1x60.6x8x
Fri, 03 Feb 2023US$3.7tUS$435.8bUS$57.8b42.9x64.4x8.5x
Sun, 01 Jan 2023US$3.3tUS$434.4bUS$60.2b42x54.4x7.5x
Price to Earnings Ratio

54.4x


Total Market Cap: US$3.3tTotal Earnings: US$60.2bTotal Revenue: US$434.4bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.1x202320242025
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 43.8x which is lower than its 3-year average PE of 55.1x.
  • The industry is trading close to its 3-year average PS ratio of 10.5x.
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 Market3.10%
Tech5.09%
Software3.56%
Application Software4.30%
Systems Software3.21%
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 25.3%, which is lower than the prior year's growth of 41.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to 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.
  • However this is lower than its past earnings growth rate of 41% 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
MSFT MicrosoftUS$488.022.5%
+US$88.4b		11.1%PE34.6x
ORCL OracleUS$197.4910.7%
+US$54.7b		15.2%PE36.8x
PLTR Palantir TechnologiesUS$194.179.5%
+US$40.2b		135.7%PE422.5x
APP AppLovinUS$727.5010.7%
+US$23.8b		112.8%PE84.3x
CRM SalesforceUS$265.262.8%
+US$6.7b		-23.0%PE34.4x

Latest News

NOW
US$152.59
ServiceNow
7D
-2.5%
1Y
-31.0%
ORCL
US$197.49
Oracle
7D
10.7%
1Y
15.2%
SNPS
US$475.75
Synopsys
7D
5.0%
1Y
-4.9%
ADBE
US$352.98
Adobe
7D
-0.5%
1Y
-21.2%

ADBE: Rising AI Costs Will Pressure Margins And Drive Multiple Compression

Analysts have reduced their fair value estimate for Adobe from $380.00 to about $271.93 per share, citing expectations for slightly slower revenue growth, lower long term profit margins, and a more conservative valuation multiple. Analyst Commentary Bearish analysts have become more vocal on Adobe, pointing to a combination of moderating growth expectations and tighter competitive dynamics across creative, document, and marketing workflows.
BSY
US$38.91
Bentley Systems
7D
-2.9%
1Y
-19.0%

BSY: Agentic AI Expansion Will Support Upside Despite Recent Caution

The analyst’s fair value estimate for Bentley Systems has been raised by about $4 to approximately $46 per share, as analysts balance slightly softer growth and margin assumptions against continued solid quarterly results and growing enthusiasm for the company’s AI driven infrastructure software opportunity. Analyst Commentary Recent Street research highlights a more mixed sentiment backdrop, with some incremental caution emerging around valuation and the balance of risk and reward at current levels.
YOU
US$36.20
Clear Secure
7D
-7.8%
1Y
32.6%

YOU Robust Q4 Guidance And Healthcare Deals Will Support Steady Future Momentum

Analysts nudged their fair value estimate for Clear Secure up by about $1.00 to roughly $39.38, citing stronger than expected Q3 performance, robust Q4 guidance, and sustained member driven revenue growth. Analyst Commentary Bullish analysts view the latest quarter as a confirmation that Clear Secure can sustain double digit top line growth while maintaining pricing power and disciplined cost control, supporting higher valuation multiples.
FICO
US$1,731.01
Fair Isaac
7D
-1.4%
1Y
-17.8%
CRM
US$265.26
Salesforce
7D
2.8%
1Y
-23.0%

CRM: Expanding AI Customer Engagement Will Drive Durable Long Term Shareholder Value

Analysts have inched up their Salesforce price target, with fair value rising roughly $3 to about $330 per share, as modestly stronger long term revenue growth assumptions and a slightly lower discount rate more than offset a marginally softer profit margin outlook amid shifting competitive dynamics in customer engagement and AI driven marketing tools. Analyst Commentary Analyst sentiment on Salesforce remains mixed as the competitive backdrop in customer engagement and AI driven marketing tools evolves rapidly, leading to both upward and downward adjustments to growth and execution assumptions embedded in valuation models.
IOT
US$36.56
Samsara
7D
-4.4%
1Y
-19.7%

IOT: Future Returns Will Reflect Expanding Connected Operations Platform Adoption

Analysts have nudged their price target for Samsara higher to approximately $50.36 from about $49.72, citing slightly lower perceived risk and more favorable long term valuation assumptions, despite moderating growth and margin expectations. What's in the News Samsara issued fourth quarter and full fiscal year 2026 guidance, targeting revenue of $421 million to $423 million for Q4 (22 percent year over year growth) and $1.595 billion to $1.597 billion for the year (28 percent year over year growth) (company guidance).
ZM
US$87.79
Zoom Communications
7D
-1.1%
1Y
2.5%
APP
US$727.50
AppLovin
7D
10.7%
1Y
112.8%

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$194.17
Palantir Technologies
7D
9.5%
1Y
135.7%
MSFT
US$488.02
Microsoft
7D
2.5%
1Y
11.1%

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.
NBIS
US$91.13
Nebius Group
7D
20.8%
1Y
222.6%
INTU
US$674.83
Intuit
7D
2.1%
1Y
4.6%

INTU: OpenAI Partnership Will Drive AI Agents And Credit Platform Upside

Analysts have raised their price target on Intuit to $875 per share, citing the de risking impact of its new OpenAI partnership and a more bullish outlook for Credit Karma revenue growth. Analyst Commentary Bullish Takeaways Bullish analysts view the OpenAI partnership as removing a key competitive overhang, supporting higher confidence in Intuit's long term earnings power and justifying a premium valuation multiple.
MSTR
US$158.71
Strategy
7D
-1.0%
1Y
-55.7%