Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Software Industry Analysis

UpdatedAug 10, 2025
DataAggregated Company Financials
Companies411
  • 7D0.2%
  • 3M13.1%
  • 1Y34.2%
  • YTD18.1%

Over the last 7 days, the Software industry has remained flat, although notably Palantir Technologies gained 21%. As for the the longer term, the industry is up 34% over the past 12 months. Looking forward, earnings are forecast to grow by 16% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 10 Aug 2025US$7.6tUS$613.9bUS$150.0b37.7x50.5x12.3x
Tue, 08 Jul 2025US$7.4tUS$598.9bUS$131.3b43.4x56.4x12.4x
Thu, 05 Jun 2025US$6.8tUS$595.7bUS$131.6b37.2x51.9x11.5x
Sat, 03 May 2025US$6.3tUS$589.0bUS$131.0b33.5x48.3x10.7x
Mon, 31 Mar 2025US$5.7tUS$582.3bUS$130.7b29.5x43.7x9.8x
Wed, 26 Feb 2025US$6.3tUS$580.0bUS$129.5b36.6x48.6x10.8x
Fri, 24 Jan 2025US$6.7tUS$568.2bUS$129.2b42.6x51.9x11.8x
Sun, 22 Dec 2024US$6.6tUS$569.1bUS$128.8b40.8x51.1x11.6x
Tue, 19 Nov 2024US$6.3tUS$566.6bUS$127.1b40.9x49.9x11.2x
Thu, 17 Oct 2024US$6.0tUS$551.7bUS$124.1b38.7x48.7x11x
Sat, 14 Sep 2024US$6.0tUS$552.4bUS$124.0b38.6x48x10.8x
Mon, 12 Aug 2024US$5.6tUS$548.6bUS$121.5b34.7x46.1x10.2x
Wed, 10 Jul 2024US$6.1tUS$530.5bUS$118.1b40.1x52x11.6x
Fri, 07 Jun 2024US$5.2tUS$476.6bUS$107.1b40.2x48.8x11x
Sun, 05 May 2024US$5.2tUS$476.8bUS$103.2b42.3x50.1x10.8x
Tue, 02 Apr 2024US$5.4tUS$465.9bUS$98.3b45.2x54.9x11.6x
Thu, 29 Feb 2024US$5.3tUS$466.6bUS$95.1b42.8x56.1x11.4x
Sat, 27 Jan 2024US$5.5tUS$486.8bUS$82.4b47.4x66.2x11.2x
Mon, 25 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Wed, 22 Nov 2023US$4.9tUS$482.4bUS$79.9b45.4x61.5x10.2x
Fri, 20 Oct 2023US$4.5tUS$477.3bUS$73.7b42.5x61.4x9.5x
Sun, 17 Sep 2023US$4.6tUS$480.1bUS$73.0b45.2x62.5x9.5x
Tue, 15 Aug 2023US$4.5tUS$473.1bUS$70.1b45.3x63.7x9.4x
Thu, 13 Jul 2023US$4.5tUS$460.7bUS$60.1b49.2x75.5x9.9x
Sat, 10 Jun 2023US$4.3tUS$460.1bUS$62.1b43.1x69.8x9.4x
Mon, 08 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Wed, 05 Apr 2023US$3.9tUS$453.7bUS$60.6b44x64.9x8.7x
Fri, 03 Mar 2023US$3.5tUS$441.3bUS$58.9b42.7x59.9x8x
Sun, 29 Jan 2023US$3.5tUS$435.5bUS$57.9b42.5x60.2x8x
Tue, 27 Dec 2022US$3.2tUS$434.3bUS$60.3b41.7x53.7x7.5x
Thu, 24 Nov 2022US$3.4tUS$430.5bUS$62.0b45.6x54.6x7.9x
Sat, 22 Oct 2022US$3.3tUS$412.8bUS$64.3b38.6x50.9x7.9x
Mon, 19 Sep 2022US$3.4tUS$413.7bUS$64.8b39.8x52.6x8.2x
Wed, 17 Aug 2022US$4.1tUS$410.1bUS$66.9b47.9x61.3x10x
Price to Earnings Ratio

61.3x


Total Market Cap: US$4.1tTotal Earnings: US$66.9bTotal Revenue: US$410.1bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.7x202320242025
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 50.5x which is lower than its 3-year average PE of 55.7x.
  • The 3-year average PS ratio of 10.1x 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 31% 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 Market2.39%
Tech4.18%
Software0.22%
Application Software2.25%
Systems Software-0.67%
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 19.2%, which is higher than its past year's earnings growth of 11.9% 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 38.6x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 19% over the next 5 years.
  • This is better than its past earnings growth rate of 12% 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
PLTR Palantir TechnologiesUS$186.9621.2%
+US$79.5b		523.0%PE581.1x
APP AppLovinUS$455.9820.3%
+US$25.9b		489.3%PE61.4x
ORCL OracleUS$250.052.3%
+US$15.8b		89.3%PE56.4x
MSTR MicroStrategyUS$395.137.8%
+US$8.1b		191.9%PE23.7x
NBIS Nebius GroupUS$68.7832.3%
+US$4.0b		n/aPE86.3x

Latest News

NBIS
US$68.78
Nebius Group
7D
32.3%
1Y
n/a
author-image

Overvaluation Will Crumble Under Intensifying Regulatory And Cost Pressures

Intensifying competition, open-source adoption, and regulatory hurdles threaten Nebius Group's profitability, margin stability, and expansion prospects in key markets.
NOW
US$872.51
ServiceNow
7D
-4.6%
1Y
7.6%

These 4 Measures Indicate That ServiceNow (NYSE:NOW) Is Using Debt Safely

Aug 10
These 4 Measures Indicate That ServiceNow (NYSE:NOW) Is Using Debt Safely
TEAM
US$168.06
Atlassian
7D
-8.1%
1Y
18.8%
MSTR
US$395.13
MicroStrategy
7D
7.8%
1Y
191.9%
SOUN
US$13.55
SoundHound AI
7D
34.0%
1Y
178.2%
FTNT
US$74.39
Fortinet
7D
-23.6%
1Y
6.7%

Fortinet, Inc. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next

Aug 08
Fortinet, Inc. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next
CRM
US$240.51
Salesforce
7D
-4.1%
1Y
-4.8%
CRWD
US$424.49
CrowdStrike Holdings
7D
-5.0%
1Y
76.2%
MSFT
US$522.04
Microsoft
7D
-0.4%
1Y
28.6%
APP
US$455.98
AppLovin
7D
20.3%
1Y
489.3%
ORCL
US$250.05
Oracle
7D
2.3%
1Y
89.3%
INTU
US$749.00
Intuit
7D
-3.5%
1Y
18.9%
PLTR
US$186.96
Palantir Technologies
7D
21.2%
1Y
523.0%
FIG
US$78.11
Figma
7D
-36.0%
1Y
n/a

Figma Tripled On IPO: Everything There Is To Know Before Jumping In

Jul 31
BMNR
US$51.43
Bitmine Immersion Technologies
7D
62.3%
1Y
385.3%