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U.S. Software Industry Analysis

UpdatedOct 16, 2025
DataAggregated Company Financials
Companies411
  • 7D-1.8%
  • 3M2.3%
  • 1Y26.6%
  • YTD20.5%

Over the last 7 days, the Software industry has dropped 1.8%, driven by a pullback from Microsoft of 2.2%. On the other hand Oracle is actually up 5.2%. Over the past 12 months, the industry was up 27%. 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
Thu, 16 Oct 2025US$7.8tUS$621.4bUS$151.7b34.9x51.2x12.5x
Sat, 13 Sep 2025US$7.7tUS$620.9bUS$151.9b34.9x50.6x12.4x
Mon, 11 Aug 2025US$7.6tUS$614.0bUS$150.0b37.7x50.5x12.3x
Wed, 09 Jul 2025US$7.4tUS$598.9bUS$131.3b43.8x56.2x12.3x
Fri, 06 Jun 2025US$6.8tUS$595.6bUS$131.6b39.5x52x11.5x
Sun, 04 May 2025US$6.4tUS$589.0bUS$131.0b33.5x48.9x10.9x
Tue, 01 Apr 2025US$5.7tUS$582.3bUS$130.7b29.3x43.7x9.8x
Thu, 27 Feb 2025US$6.2tUS$581.2bUS$128.6b35.2x48.1x10.6x
Sat, 25 Jan 2025US$6.7tUS$568.2bUS$129.2b42.3x52.1x11.8x
Mon, 23 Dec 2024US$6.6tUS$569.1bUS$128.8b40.8x51.1x11.6x
Wed, 20 Nov 2024US$6.3tUS$566.7bUS$127.1b41x50x11.2x
Fri, 18 Oct 2024US$6.0tUS$551.7bUS$124.1b39.5x48.7x10.9x
Sun, 15 Sep 2024US$6.0tUS$552.4bUS$124.0b38.8x48.2x10.8x
Tue, 13 Aug 2024US$5.6tUS$548.6bUS$121.5b34.3x46.1x10.2x
Thu, 11 Jul 2024US$6.0tUS$530.5bUS$118.1b40.3x51.1x11.4x
Sat, 08 Jun 2024US$5.2tUS$477.7bUS$107.3b39.9x48.9x11x
Mon, 06 May 2024US$5.2tUS$476.8bUS$103.2b42.3x50.1x10.8x
Wed, 03 Apr 2024US$5.4tUS$466.0bUS$98.3b44x55.1x11.6x
Fri, 01 Mar 2024US$5.4tUS$472.1bUS$98.1b43.9x54.6x11.3x
Sun, 28 Jan 2024US$5.4tUS$486.8bUS$82.4b47.4x66.1x11.2x
Tue, 26 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Thu, 23 Nov 2023US$5.0tUS$482.4bUS$79.9b44.9x62.4x10.3x
Sat, 21 Oct 2023US$4.4tUS$477.3bUS$73.7b42x60.3x9.3x
Mon, 18 Sep 2023US$4.6tUS$480.1bUS$73.0b45.2x62.5x9.5x
Wed, 16 Aug 2023US$4.4tUS$473.1bUS$70.2b45.1x63.1x9.4x
Fri, 14 Jul 2023US$4.6tUS$460.7bUS$60.1b49.4x76.8x10x
Sun, 11 Jun 2023US$4.3tUS$460.1bUS$62.1b43.1x69.8x9.4x
Tue, 09 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.5x8.7x
Thu, 06 Apr 2023US$3.9tUS$453.7bUS$60.6b43.5x64x8.5x
Sat, 04 Mar 2023US$3.6tUS$453.1bUS$59.7b43.6x61.1x8x
Mon, 30 Jan 2023US$3.5tUS$435.5bUS$57.9b42.7x60.2x8x
Wed, 28 Dec 2022US$3.2tUS$434.3bUS$60.3b41.3x53.3x7.4x
Fri, 25 Nov 2022US$3.4tUS$430.5bUS$62.0b45.6x54.6x7.9x
Sun, 23 Oct 2022US$3.3tUS$412.8bUS$64.3b38.6x50.9x7.9x
Price to Earnings Ratio

50.9x


Total Market Cap: US$3.3tTotal Earnings: US$64.3bTotal Revenue: US$412.8bTotal 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 51.2x which is lower than its 3-year average PE of 55.5x.
  • The 3-year average PS ratio of 10.3x is lower than the industry's current PS ratio of 12.5x.
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 Market-1.18%
Tech-2.34%
Software-1.78%
Systems Software-1.20%
Application Software-3.09%
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 18.5% 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 39.4x.
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 18% 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
ORCL OracleUS$303.625.2%
+US$42.7b		73.7%PE69.6x
QBTS D-Wave QuantumUS$44.7830.7%
+US$3.6b		4,205.8%PS687.6x
IREN IRENUS$67.9813.1%
+US$2.1b		627.1%PE212.7x
CIFR Cipher MiningUS$21.0319.5%
+US$1.3b		319.8%PS52.1x
WULF TeraWulfUS$15.4725.8%
+US$1.3b		197.5%PS43.8x

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7D
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