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U.S. Software Industry Analysis

UpdatedJan 09, 2026
DataAggregated Company Financials
Companies432
  • 7D-1.1%
  • 3M-9.3%
  • 1Y9.2%
  • YTD1.4%

Over the last 7 days, the Software industry has remained flat, although notably Synopsys gained 9.5%. As for the the longer term, the industry is up 11% over the past 12 months. 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, 09 Jan 2026US$7.1tUS$648.9bUS$165.0b32.2x43.1x11x
Sun, 07 Dec 2025US$7.2tUS$641.9bUS$162.0b31.5x44.7x11.3x
Tue, 04 Nov 2025US$7.8tUS$637.0bUS$158.3b35.9x49.3x12.2x
Thu, 02 Oct 2025US$7.8tUS$621.0bUS$151.9b35.5x51.4x12.6x
Sat, 30 Aug 2025US$7.5tUS$616.5bUS$150.7b34.9x49.5x12.1x
Mon, 28 Jul 2025US$7.6tUS$597.2bUS$130.9b45.7x57.8x12.7x
Wed, 25 Jun 2025US$7.2tUS$599.0bUS$131.1b42.5x55x12.1x
Fri, 23 May 2025US$6.6tUS$591.8bUS$131.4b35.6x50.6x11.2x
Sun, 20 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.7x9.4x
Tue, 18 Mar 2025US$5.9tUS$582.9bUS$131.2b28.3x44.7x10.1x
Thu, 13 Feb 2025US$6.5tUS$587.2bUS$131.5b42.3x49.8x11.1x
Sat, 11 Jan 2025US$6.4tUS$569.1bUS$129.3b38.8x49.3x11.2x
Mon, 09 Dec 2024US$6.9tUS$566.7bUS$128.2b43.4x53.5x12.1x
Wed, 06 Nov 2024US$6.0tUS$562.1bUS$126.3b35.5x47.4x10.6x
Fri, 04 Oct 2024US$5.9tUS$551.7bUS$124.1b38.7x47.7x10.7x
Sun, 01 Sep 2024US$5.8tUS$551.5bUS$122.1b38.3x47.8x10.6x
Tue, 30 Jul 2024US$5.8tUS$532.0bUS$117.8b40.1x49x10.8x
Thu, 27 Jun 2024US$5.9tUS$531.3bUS$118.1b40.6x50.1x11.1x
Sat, 25 May 2024US$5.4tUS$475.8bUS$105.8b41.4x50.8x11.3x
Mon, 22 Apr 2024US$5.0tUS$466.6bUS$98.4b43.1x51.3x10.8x
Wed, 20 Mar 2024US$5.4tUS$465.8bUS$98.1b45x55x11.6x
Fri, 16 Feb 2024US$5.4tUS$464.9bUS$90.6b42.6x59.5x11.6x
Sun, 14 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Tue, 12 Dec 2023US$5.1tUS$485.6bUS$82.5b47.3x61.4x10.4x
Thu, 09 Nov 2023US$4.7tUS$481.7bUS$79.2b42.3x60x9.9x
Sat, 07 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Mon, 04 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Wed, 02 Aug 2023US$4.6tUS$466.2bUS$64.9b48x71.1x9.9x
Fri, 30 Jun 2023US$4.4tUS$460.6bUS$62.3b44.7x71.5x9.7x
Sun, 28 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Tue, 25 Apr 2023US$3.9tUS$453.7bUS$60.6b42.3x63.7x8.5x
Thu, 23 Mar 2023US$3.7tUS$453.7bUS$59.8b41.8x62.4x8.2x
Sat, 18 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Mon, 16 Jan 2023US$3.3tUS$434.5bUS$60.2b39.9x55.1x7.6x
Price to Earnings Ratio

55.1x


Total Market Cap: US$3.3tTotal Earnings: US$60.2bTotal Revenue: US$434.5bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 54.9x202420252026
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 42.7x which is lower than its 3-year average PE of 54.9x.
  • 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 Market1.49%
Tech-0.84%
Software-1.10%
Application Software-0.93%
Systems Software-1.18%
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 24.2%, 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 40.1x.
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 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
SNPS SynopsysUS$514.499.5%
+US$8.6b		2.5%PE73.7x
MSTR StrategyUS$166.979.9%
+US$4.9b		-49.7%PE6.6x
PANW Palo Alto NetworksUS$190.803.6%
+US$4.6b		10.4%PE119.1x
NBIS Nebius GroupUS$97.3016.2%
+US$3.4b		216.5%PE214.5x
IREN IRENUS$45.6820.9%
+US$2.6b		334.6%PE28.7x

Latest News

IREN
US$45.68
IREN
7D
20.9%
1Y
334.6%
MSFT
US$478.11
Microsoft
7D
-1.1%
1Y
12.6%
APP
US$616.53
AppLovin
7D
-8.5%
1Y
87.3%
NOW
US$146.19
ServiceNow
7D
-4.6%
1Y
-30.3%
ADBE
US$339.04
Adobe
7D
-3.1%
1Y
-19.2%

ADBE: Future AI And Marketing Deals Will Reshape Cash Flow Profile

Narrative Update on Adobe Analysts have revised their Adobe fair value estimate from $605.00 to about $585.69. This reflects slightly lower revenue growth and profit margin assumptions, a somewhat higher discount rate, and a partially offsetting increase in the future P/E input in their models.
SNPS
US$514.49
Synopsys
7D
9.5%
1Y
2.5%
NBIS
US$97.30
Nebius Group
7D
16.2%
1Y
216.5%

NBIS: Power Capacity Expansion Will Support Future AI Infrastructure Demand

Analysts have raised their fair value estimate for Nebius Group from $130.00 to $211.00, citing new Outperform initiations, higher Street price targets, and growing confidence in the company’s role in supplying power and capacity for high performance compute and AI demand. Analyst Commentary Recent research coverage points to a constructive view on Nebius Group, with several bullish analysts highlighting the company’s position in supplying power and capacity for high performance compute and AI related workloads.
BMNR
US$31.28
Bitmine Immersion Technologies
7D
15.2%
1Y
421.3%
CDNS
US$318.80
Cadence Design Systems
7D
2.0%
1Y
5.3%

CDNS: AI And High Performance Compute Demand Will Drive Future Upside

Analysts have raised their fair value estimate for Cadence Design Systems by $8 to $418, citing stronger recent Q3 results, firm forward growth guidance, and continued demand for the company's tools in artificial intelligence and high performance computing as the main reasons for the higher target. Analyst Commentary Analysts reacting to the recent Q3 report are highlighting what they see as solid execution and a supportive demand backdrop for Cadence Design Systems, especially in artificial intelligence and high performance computing workloads.
TEAM
US$149.43
Atlassian
7D
-7.8%
1Y
-38.9%

TEAM: Cloud Partnership Progress And Share Repurchases Will Shape Balanced Long-Term Outlook

Analysts have reduced their fair value estimate for Atlassian from $178.00 to $167.44. The revision reflects updated views on its revenue growth assumptions, profit margin outlook, discount rate and future P/E expectations.
ADSK
US$276.58
Autodesk
7D
-6.6%
1Y
-6.7%

Shareholders Should Be Pleased With Autodesk, Inc.'s (NASDAQ:ADSK) Price

Jan 02
Shareholders Should Be Pleased With Autodesk, Inc.'s (NASDAQ:ADSK) Price
ORCL
US$189.65
Oracle
7D
-2.7%
1Y
16.2%
CRM
US$260.53
Salesforce
7D
-1.7%
1Y
-20.3%

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.
PANW
US$190.80
Palo Alto Networks
7D
3.6%
1Y
10.4%

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$166.97
Strategy
7D
9.9%
1Y
-49.7%
AUR
US$4.67
Aurora Innovation
7D
21.6%
1Y
-42.0%