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U.S. Software Industry Analysis

UpdatedOct 01, 2025
DataAggregated Company Financials
Companies409
  • 7D-0.7%
  • 3M6.7%
  • 1Y30.0%
  • YTD20.9%

In the last week, the Software industry is flat overall, with Oracle standing out by going down 10%. The past year has been better, since the industry has gained 30% 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
Wed, 01 Oct 2025US$7.8tUS$621.0bUS$151.9b36.3x51.4x12.6x
Fri, 29 Aug 2025US$7.4tUS$616.1bUS$150.6b34.9x49x12x
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
Price to Earnings Ratio

50x


Total Market Cap: US$3.2tTotal Earnings: US$64.7bTotal Revenue: US$412.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.5x202320242025
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 51.4x which is lower than its 3-year average PE of 55.5x.
  • The 3-year average PS ratio of 10.2x 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 33% per year over the last three years.
  • Revenues for these companies have grown 15% 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 Market0.22%
Tech0.73%
Software-0.66%
Systems Software-0.54%
Application Software-0.93%
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 24.8%, which is higher than its past year's earnings growth of 20.0% 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 39.2x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • This is better than its past earnings growth rate of 20% 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$517.951.7%
+US$64.8b		23.1%PE37.8x
APP AppLovinUS$718.5410.3%
+US$22.8b		450.0%PE96.7x
DDOG DatadogUS$142.403.6%
+US$1.7b		24.9%PE398.6x
ZS ZscalerUS$299.663.6%
+US$1.6b		79.4%PS17.7x
CRWD CrowdStrike HoldingsUS$490.381.3%
+US$1.6b		78.2%PS28.3x

Latest News

DOCU
US$72.09
DocuSign
7D
-15.0%
1Y
17.4%
ADBE
US$352.75
Adobe
7D
-2.5%
1Y
-29.8%
CRWD
US$490.38
CrowdStrike Holdings
7D
1.3%
1Y
78.2%
MSFT
US$517.95
Microsoft
7D
1.7%
1Y
23.1%
ORCL
US$281.24
Oracle
7D
-10.4%
1Y
68.2%
RIOT
US$19.03
Riot Platforms
7D
11.5%
1Y
168.8%

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APP
US$718.54
AppLovin
7D
10.3%
1Y
450.0%
CDNS
US$351.26
Cadence Design Systems
7D
-4.1%
1Y
33.4%
NBIS
US$112.27
Nebius Group
7D
4.1%
1Y
n/a
DDOG
US$142.40
Datadog
7D
3.6%
1Y
24.9%
INTU
US$682.91
Intuit
7D
-2.3%
1Y
12.6%
ZS
US$299.66
Zscaler
7D
3.6%
1Y
79.4%
CRM
US$237.00
Salesforce
7D
-3.1%
1Y
-12.5%
MFH
US$24.58
Mercurity Fintech Holding
7D
84.5%
1Y
1,250.5%

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HUBS
US$467.80
HubSpot
7D
-8.8%
1Y
-11.2%
FIG
US$51.87
Figma
7D
-10.8%
1Y
n/a