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U.S. Software Industry Analysis

UpdatedJul 16, 2025
DataAggregated Company Financials
Companies400
  • 7D-0.06%
  • 3M32.4%
  • 1Y20.3%
  • YTD14.1%

Over the last 7 days, the Software industry has remained flat, although notably Salesforce declined by 5.9%. The past year has been better, since the industry has gained 20% in that time. 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
Wed, 16 Jul 2025US$7.4tUS$598.9bUS$131.4b43.1x56.1x12.3x
Fri, 13 Jun 2025US$7.0tUS$598.6bUS$130.5b41.3x53.4x11.6x
Sun, 11 May 2025US$6.4tUS$590.8bUS$130.8b33.7x49.2x10.9x
Tue, 08 Apr 2025US$5.3tUS$581.3bUS$131.8b28.7x39.9x9x
Thu, 06 Mar 2025US$6.0tUS$582.0bUS$129.5b34.9x46.5x10.4x
Sat, 01 Feb 2025US$6.5tUS$585.7bUS$132.3b41.2x48.8x11x
Mon, 30 Dec 2024US$6.5tUS$569.1bUS$128.8b40.7x50.5x11.4x
Wed, 27 Nov 2024US$6.5tUS$566.0bUS$127.5b42.3x51.1x11.5x
Fri, 25 Oct 2024US$6.1tUS$552.5bUS$124.3b37.2x48.8x11x
Sun, 22 Sep 2024US$6.1tUS$552.4bUS$124.0b38.8x49.1x11x
Tue, 20 Aug 2024US$5.8tUS$548.8bUS$121.5b36.3x47.7x10.6x
Thu, 18 Jul 2024US$6.0tUS$530.6bUS$118.4b41.5x50.9x11.4x
Sat, 15 Jun 2024US$5.8tUS$530.8bUS$117.8b39.8x48.9x10.9x
Mon, 13 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Wed, 10 Apr 2024US$5.4tUS$466.0bUS$98.4b43.4x54.9x11.6x
Fri, 08 Mar 2024US$5.4tUS$470.0bUS$98.4b44.7x54.4x11.4x
Sun, 04 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Tue, 02 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Thu, 30 Nov 2023US$5.0tUS$483.6bUS$80.7b45.4x62.5x10.4x
Sat, 28 Oct 2023US$4.4tUS$484.7bUS$78.9b41.7x55.8x9.1x
Mon, 25 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Wed, 23 Aug 2023US$4.4tUS$473.8bUS$70.7b43.8x62.6x9.3x
Fri, 21 Jul 2023US$4.6tUS$460.7bUS$60.1b48.5x77.2x10.1x
Sun, 18 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Tue, 16 May 2023US$4.0tUS$456.9bUS$61.1b39.9x65.8x8.8x
Thu, 13 Apr 2023US$3.9tUS$453.6bUS$60.5b43.7x63.9x8.5x
Sat, 11 Mar 2023US$3.5tUS$453.6bUS$60.0b42.3x58.2x7.7x
Mon, 06 Feb 2023US$3.6tUS$436.5bUS$57.8b42.3x62.6x8.3x
Wed, 04 Jan 2023US$3.3tUS$434.4bUS$60.2b41.7x54.1x7.5x
Fri, 02 Dec 2022US$3.5tUS$432.5bUS$61.0b46.8x57.1x8.1x
Sun, 30 Oct 2022US$3.3tUS$418.7bUS$61.5b39.7x53.5x7.9x
Tue, 27 Sep 2022US$3.2tUS$413.7bUS$64.8b39.3x50x7.8x
Thu, 25 Aug 2022US$3.8tUS$410.3bUS$65.8b46x58.3x9.3x
Sat, 23 Jul 2022US$3.7tUS$408.7bUS$67.9b43.7x55x9.1x
Price to Earnings Ratio

55x


Total Market Cap: US$3.7tTotal Earnings: US$67.9bTotal Revenue: US$408.7bTotal 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 12.3x.
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 Market0.15%
Tech1.25%
Software-0.061%
Systems Software0.55%
Application Software-1.42%
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$505.821.9%
+US$68.4b		12.5%PE38.9x
PLTR Palantir TechnologiesUS$148.586.3%
+US$20.9b		418.2%PE614.4x
MSTR MicroStrategyUS$442.3111.4%
+US$12.7b		165.8%PS269x
APP AppLovinUS$352.962.4%
+US$2.8b		307.9%PE62.3x
SNPS SynopsysUS$569.103.2%
+US$2.7b		-7.2%PE65.4x

Latest News

CRM
US$257.58
Salesforce
7D
-5.9%
1Y
0.6%
PLTR
US$148.58
Palantir Technologies
7D
6.3%
1Y
418.2%
MSTR
US$442.31
MicroStrategy
7D
11.4%
1Y
165.8%

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ANSS
US$392.72
ANSYS
7D
7.0%
1Y
18.9%
PTC
US$192.22
PTC
7D
7.4%
1Y
4.4%
ADSK
US$288.96
Autodesk
7D
-8.2%
1Y
13.8%
MSFT
US$505.82
Microsoft
7D
1.9%
1Y
12.5%
INTU
US$745.95
Intuit
7D
-4.5%
1Y
12.0%
TEAM
US$187.69
Atlassian
7D
-14.4%
1Y
2.5%
NOW
US$956.92
ServiceNow
7D
-6.5%
1Y
25.8%
APP
US$352.96
AppLovin
7D
2.4%
1Y
307.9%
ADBE
US$364.18
Adobe
7D
-4.7%
1Y
-35.7%

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PANW
US$192.25
Palo Alto Networks
7D
-5.8%
1Y
13.6%
CRWD
US$473.28
CrowdStrike Holdings
7D
-6.8%
1Y
28.2%
SNPS
US$569.10
Synopsys
7D
3.2%
1Y
-7.2%
NBIS
US$53.53
Nebius Group
7D
13.7%
1Y
n/a