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U.S. Software Industry Analysis

UpdatedAug 16, 2025
DataAggregated Company Financials
Companies408
  • 7D-0.5%
  • 3M10.8%
  • 1Y29.2%
  • YTD17.8%

The Software industry has been flat over the last week, but Intuit has lost 6.7%. As for the the longer term, the industry is up 28% over the past 12 months. Looking forward, earnings are forecast to grow by 18% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 16 Aug 2025US$7.5tUS$614.4bUS$150.3b37.2x50.1x12.2x
Mon, 14 Jul 2025US$7.3tUS$598.9bUS$131.4b41.8x55.7x12.2x
Wed, 11 Jun 2025US$7.0tUS$595.8bUS$131.6b41.1x53x11.7x
Fri, 09 May 2025US$6.4tUS$590.3bUS$132.1b32.8x48.1x10.8x
Sun, 06 Apr 2025US$5.3tUS$581.3bUS$131.8b28.8x39.9x9.1x
Tue, 04 Mar 2025US$6.1tUS$580.6bUS$129.3b34.5x47.5x10.6x
Thu, 30 Jan 2025US$6.7tUS$576.9bUS$129.4b44.5x52.1x11.7x
Sat, 28 Dec 2024US$6.6tUS$569.1bUS$128.8b40.7x50.9x11.5x
Mon, 25 Nov 2024US$6.5tUS$567.3bUS$127.2b42.4x51.3x11.5x
Wed, 23 Oct 2024US$6.1tUS$551.7bUS$124.1b36x48.9x11x
Fri, 20 Sep 2024US$6.0tUS$552.4bUS$124.0b39x48.2x10.8x
Sun, 18 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.7x10.6x
Tue, 16 Jul 2024US$6.0tUS$530.6bUS$118.4b40.8x50.9x11.4x
Thu, 13 Jun 2024US$5.3tUS$477.8bUS$107.3b40.5x49.6x11.1x
Sat, 11 May 2024US$5.2tUS$474.3bUS$104.3b43.4x50x11x
Mon, 08 Apr 2024US$5.4tUS$466.0bUS$98.3b43.2x54.8x11.6x
Wed, 06 Mar 2024US$5.4tUS$468.7bUS$98.2b42.2x55.4x11.6x
Fri, 02 Feb 2024US$5.5tUS$496.4bUS$88.0b43.1x62.1x11x
Sun, 31 Dec 2023US$5.2tUS$486.1bUS$82.9b47.3x62.4x10.6x
Tue, 28 Nov 2023US$5.0tUS$482.6bUS$79.9b44.2x62.5x10.4x
Thu, 26 Oct 2023US$4.5tUS$483.9bUS$78.6b41.9x57.3x9.3x
Sat, 23 Sep 2023US$4.4tUS$480.7bUS$73.0b45.4x60.3x9.1x
Mon, 21 Aug 2023US$4.3tUS$474.4bUS$70.6b43.5x61.5x9.2x
Wed, 19 Jul 2023US$4.8tUS$460.7bUS$60.1b50x79.5x10.4x
Fri, 16 Jun 2023US$4.5tUS$460.1bUS$62.2b46.9x71.9x9.7x
Sun, 14 May 2023US$4.0tUS$456.8bUS$61.1b39.2x65.4x8.7x
Tue, 11 Apr 2023US$3.9tUS$453.6bUS$60.5b43.4x64.8x8.6x
Thu, 09 Mar 2023US$3.6tUS$453.2bUS$59.6b43.2x60.7x8x
Sat, 04 Feb 2023US$3.6tUS$435.9bUS$57.8b44.8x62.5x8.3x
Mon, 02 Jan 2023US$3.3tUS$434.4bUS$60.2b42x54.2x7.5x
Wed, 30 Nov 2022US$3.3tUS$430.5bUS$62.0b44.7x53.1x7.6x
Fri, 28 Oct 2022US$3.2tUS$418.6bUS$61.5b38.5x52.5x7.7x
Sun, 25 Sep 2022US$3.3tUS$413.7bUS$64.8b39.4x50.3x7.9x
Tue, 23 Aug 2022US$3.9tUS$410.3bUS$66.6b45.7x58x9.4x
Price to Earnings Ratio

58x


Total Market Cap: US$3.9tTotal Earnings: US$66.6bTotal Revenue: US$410.3bTotal 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 49.2x 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 32% 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 Market1.01%
Tech-0.30%
Software-0.48%
Systems Software-0.12%
Application Software-1.29%
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 24.1%, which is higher than its past year's earnings growth of 15.1% 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 24% over the next 5 years.
  • This is better than its past earnings growth rate of 15% 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
PANW Palo Alto NetworksUS$177.096.0%
+US$6.7b		6.0%PE95.6x
ADBE AdobeUS$354.854.0%
+US$5.9b		-35.9%PE21.9x
FTNT FortinetUS$79.116.3%
+US$3.6b		5.9%PE31.3x
U Unity SoftwareUS$38.0114.3%
+US$2.0b		130.2%PS9x
CRM SalesforceUS$242.440.8%
+US$1.8b		-7.8%PE37.4x

Latest News

APP
US$438.68
AppLovin
7D
-3.8%
1Y
408.0%
WDAY
US$226.09
Workday
7D
1.8%
1Y
-2.4%
CRCL
US$149.26
Circle Internet Group
7D
-6.1%
1Y
n/a
WULF
US$8.97
TeraWulf
7D
78.3%
1Y
122.6%
MSFT
US$520.17
Microsoft
7D
-0.4%
1Y
24.3%
PANW
US$177.09
Palo Alto Networks
7D
6.0%
1Y
6.0%
ORCL
US$248.28
Oracle
7D
-0.7%
1Y
80.6%
MSTR
US$366.32
Strategy
7D
-7.3%
1Y
175.3%
MNDY
US$175.74
monday.com
7D
-29.1%
1Y
-33.3%
FTNT
US$79.11
Fortinet
7D
6.3%
1Y
5.9%
CRM
US$242.44
Salesforce
7D
0.8%
1Y
-7.8%
U
US$38.01
Unity Software
7D
14.3%
1Y
130.2%
INTU
US$716.74
Intuit
7D
-4.3%
1Y
9.7%
PLTR
US$177.17
Palantir Technologies
7D
-5.2%
1Y
452.3%
CYBR
US$423.85
CyberArk Software
7D
6.0%
1Y
51.4%
ADBE
US$354.85
Adobe
7D
4.0%
1Y
-35.9%

We Think Adobe's (NASDAQ:ADBE) Robust Earnings Are Conservative

Jul 02
We Think Adobe's (NASDAQ:ADBE) Robust Earnings Are Conservative