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U.S. Software Industry Analysis

UpdatedJul 27, 2025
DataAggregated Company Financials
Companies407
  • 7D0.9%
  • 3M26.6%
  • 1Y29.3%
  • YTD19.1%

In the last week, the Software industry is flat overall, with Circle Internet Group standing out by going down 14%. The past year has been better, since the industry has gained 29% in that time. Looking forward, 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
Sun, 27 Jul 2025US$7.6tUS$597.2bUS$130.9b45.7x57.8x12.7x
Tue, 24 Jun 2025US$7.1tUS$599.0bUS$131.1b41.8x54.4x11.9x
Thu, 22 May 2025US$6.8tUS$591.7bUS$131.4b35.5x51.4x11.4x
Sat, 19 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.7x9.4x
Mon, 17 Mar 2025US$5.9tUS$582.9bUS$131.2b28.1x44.7x10.1x
Wed, 12 Feb 2025US$6.6tUS$586.3bUS$132.4b42.9x49.7x11.2x
Fri, 10 Jan 2025US$6.4tUS$569.1bUS$129.0b39.1x49.4x11.2x
Sun, 08 Dec 2024US$6.9tUS$566.7bUS$128.2b43.4x53.5x12.1x
Tue, 05 Nov 2024US$6.0tUS$562.0bUS$126.3b38.4x47.5x10.7x
Thu, 03 Oct 2024US$6.0tUS$551.7bUS$124.1b38.4x48.8x11x
Sat, 31 Aug 2024US$5.8tUS$551.5bUS$122.1b38.3x47.4x10.5x
Mon, 29 Jul 2024US$5.8tUS$532.0bUS$117.8b40.7x49x10.8x
Wed, 26 Jun 2024US$5.9tUS$531.3bUS$118.0b39.5x49.8x11.1x
Fri, 24 May 2024US$5.4tUS$474.8bUS$105.4b41.3x51.4x11.4x
Sun, 21 Apr 2024US$5.0tUS$466.6bUS$98.4b43.1x51.3x10.8x
Tue, 19 Mar 2024US$5.3tUS$466.7bUS$97.8b44.8x54.7x11.5x
Thu, 15 Feb 2024US$5.3tUS$464.6bUS$90.2b42.4x58.8x11.4x
Sat, 13 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Mon, 11 Dec 2023US$5.1tUS$485.6bUS$82.5b47.1x61.3x10.4x
Wed, 08 Nov 2023US$4.7tUS$481.2bUS$79.4b43.7x58.8x9.7x
Fri, 06 Oct 2023US$4.4tUS$477.3bUS$73.4b44.7x60x9.2x
Sun, 03 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Tue, 01 Aug 2023US$4.6tUS$466.2bUS$64.9b48x71x9.9x
Thu, 29 Jun 2023US$4.5tUS$460.6bUS$62.3b43.9x71.6x9.7x
Sat, 27 May 2023US$4.3tUS$458.5bUS$61.5b41.9x70.4x9.4x
Mon, 24 Apr 2023US$3.9tUS$453.7bUS$60.6b42.4x64.4x8.6x
Wed, 22 Mar 2023US$3.8tUS$453.6bUS$59.8b42.3x63.2x8.3x
Fri, 17 Feb 2023US$3.6tUS$437.5bUS$58.0b43.1x62.7x8.3x
Sun, 15 Jan 2023US$3.3tUS$434.5bUS$60.2b39.9x55.1x7.6x
Tue, 13 Dec 2022US$3.4tUS$433.7bUS$60.9b44.7x56.1x7.9x
Thu, 10 Nov 2022US$3.0tUS$421.9bUS$62.2b41.9x48.6x7.2x
Sat, 08 Oct 2022US$3.2tUS$412.2bUS$64.7b39.4x50x7.8x
Mon, 05 Sep 2022US$3.5tUS$412.7bUS$65.0b43.9x54.3x8.6x
Wed, 03 Aug 2022US$4.2tUS$416.0bUS$67.8b41.8x61.2x10x
Price to Earnings Ratio

61.2x


Total Market Cap: US$4.2tTotal Earnings: US$67.8bTotal Revenue: US$416.0bTotal 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 12.6x.
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 13% 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 Market1.44%
Tech0.57%
Software0.91%
Application Software1.67%
Systems Software0.58%
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 21.3% 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 38.4x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 28% over the next 5 years.
  • This is better than its past earnings growth rate of 21% per year.
  • 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$513.710.7%
+US$27.2b		20.8%PE39.5x
PLTR Palantir TechnologiesUS$158.803.4%
+US$12.5b		484.3%PE656.7x
INTU IntuitUS$785.954.4%
+US$9.3b		24.1%PE63.2x
CRM SalesforceUS$269.112.6%
+US$6.4b		2.4%PE41.5x
PANW Palo Alto NetworksUS$203.273.8%
+US$5.0b		24.4%PE109.5x

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