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U.S. Software Industry Analysis

UpdatedJul 18, 2025
DataAggregated Company Financials
Companies407
  • 7D2.3%
  • 3M35.8%
  • 1Y26.1%
  • YTD16.3%

The Software industry has been flat over the last week, but CrowdStrike Holdings has lost 3.5%. The past year has been better, since the industry has gained 23% in that time. As for the next few years, earnings are expected to grow by 19% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 18 Jul 2025US$7.4tUS$598.9bUS$131.3b43.5x56.6x12.4x
Sun, 15 Jun 2025US$7.0tUS$598.9bUS$130.9b41.1x53.7x11.7x
Tue, 13 May 2025US$6.5tUS$590.8bUS$131.0b33.4x49.8x11x
Thu, 10 Apr 2025US$5.2tUS$581.3bUS$131.9b29.8x39.5x9x
Sat, 08 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.3x10.3x
Mon, 03 Feb 2025US$6.5tUS$585.7bUS$132.4b41.2x48.9x11x
Wed, 01 Jan 2025US$6.4tUS$569.1bUS$128.9b40.1x49.8x11.3x
Fri, 29 Nov 2024US$6.5tUS$566.8bUS$127.5b42.1x51x11.5x
Sun, 27 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49.3x11.1x
Tue, 24 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Thu, 22 Aug 2024US$5.9tUS$549.1bUS$121.6b36.9x48.3x10.7x
Sat, 20 Jul 2024US$5.9tUS$530.6bUS$118.4b41x49.5x11x
Mon, 17 Jun 2024US$5.8tUS$531.3bUS$118.1b39.5x49.2x10.9x
Wed, 15 May 2024US$5.2tUS$474.0bUS$104.5b44.4x50x11x
Fri, 12 Apr 2024US$5.4tUS$466.3bUS$98.4b42.1x54.5x11.5x
Sun, 10 Mar 2024US$5.3tUS$470.2bUS$98.5b46.9x54.2x11.3x
Tue, 06 Feb 2024US$5.3tUS$462.6bUS$89.3b44.9x59.1x11.4x
Thu, 04 Jan 2024US$5.0tUS$486.2bUS$82.8b46.8x60.6x10.3x
Sat, 02 Dec 2023US$5.1tUS$485.0bUS$82.0b46.6x61.9x10.5x
Mon, 30 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Wed, 27 Sep 2023US$4.3tUS$477.3bUS$73.2b44.6x59.1x9.1x
Fri, 25 Aug 2023US$4.4tUS$473.9bUS$70.8b42.9x62.1x9.3x
Sun, 23 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Tue, 20 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Thu, 18 May 2023US$4.1tUS$456.9bUS$61.0b39.9x66.9x8.9x
Sat, 15 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Mon, 13 Mar 2023US$3.5tUS$453.6bUS$60.0b42.1x58.2x7.7x
Wed, 08 Feb 2023US$3.7tUS$436.5bUS$57.8b42.3x63.7x8.4x
Fri, 06 Jan 2023US$3.1tUS$434.4bUS$60.2b39.9x51.4x7.1x
Sun, 04 Dec 2022US$3.5tUS$433.4bUS$61.0b46.2x56.8x8x
Tue, 01 Nov 2022US$3.3tUS$418.7bUS$61.5b39.7x52.9x7.8x
Thu, 29 Sep 2022US$3.3tUS$413.7bUS$64.8b39.7x51.3x8x
Sat, 27 Aug 2022US$3.7tUS$412.3bUS$65.2b46.2x57.1x9x
Mon, 25 Jul 2022US$3.7tUS$408.9bUS$67.9b42.8x54.3x9x
Price to Earnings Ratio

54.3x


Total Market Cap: US$3.7tTotal Earnings: US$67.9bTotal Revenue: US$408.9bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.8x202320242025
Current Industry PE
  • Investors are relatively neutral on the American Software industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 55.8x.
  • The 3-year average PS ratio of 10.0x is lower than the industry's current PS ratio of 12.4x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 25% 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 Market0.47%
Tech2.12%
Software2.30%
Application Software2.48%
Systems Software2.22%
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 27.8%, which is higher than its past year's earnings growth of 24.9% per year.
  • Investors are most pessimistic about the Systems Software industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 38.3x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 15% 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$511.702.0%
+US$76.0b		16.2%PE39.4x
ORCL OracleUS$248.755.9%
+US$38.6b		80.2%PE56.2x
PLTR Palantir TechnologiesUS$153.998.1%
+US$27.1b		437.7%PE636.8x
MSTR MicroStrategyUS$451.347.0%
+US$8.3b		190.2%PS274.5x
CRCL Circle Internet GroupUS$235.0815.9%
+US$7.3b		n/aPE2753.8x

Latest News

SNPS
US$589.01
Synopsys
7D
4.0%
1Y
5.1%
FICO
US$1,525.29
Fair Isaac
7D
-3.7%
1Y
-3.8%
MSTR
US$451.34
MicroStrategy
7D
7.0%
1Y
190.2%
HUBS
US$528.60
HubSpot
7D
-4.5%
1Y
9.8%
CRM
US$259.88
Salesforce
7D
-1.5%
1Y
5.1%
PLTR
US$153.99
Palantir Technologies
7D
8.1%
1Y
437.7%
CRCL
US$235.08
Circle Internet Group
7D
15.9%
1Y
n/a
ORCL
US$248.75
Oracle
7D
5.9%
1Y
80.2%
MSFT
US$511.70
Microsoft
7D
2.0%
1Y
16.2%
TEAM
US$190.62
Atlassian
7D
-4.7%
1Y
8.2%
ZS
US$286.26
Zscaler
7D
-3.3%
1Y
50.4%
NOW
US$959.15
ServiceNow
7D
-0.9%
1Y
29.8%
APP
US$363.78
AppLovin
7D
5.0%
1Y
349.5%
FTNT
US$104.92
Fortinet
7D
4.7%
1Y
80.5%

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ADBE
US$366.45
Adobe
7D
-1.3%
1Y
-34.2%

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CRWD
US$469.83
CrowdStrike Holdings
7D
-3.5%
1Y
37.0%