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U.S. Software Industry Analysis

UpdatedAug 22, 2025
DataAggregated Company Financials
Companies406
  • 7D-3.0%
  • 3M9.2%
  • 1Y25.1%
  • YTD13.8%

Over the last 7 days, the Software industry has dropped 3.0%, driven by a pullback from Microsoft of 3.5%. On the other hand Salesforce is actually up 5.3%. Over the past 12 months, the industry was up 25%. As for the next few years, earnings are expected to grow by 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 22 Aug 2025US$7.3tUS$614.8bUS$150.1b35.4x48.8x11.9x
Sun, 20 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.3x12.6x
Tue, 17 Jun 2025US$7.0tUS$598.9bUS$130.9b41.5x53.8x11.7x
Thu, 15 May 2025US$6.7tUS$590.9bUS$131.0b32.9x51.1x11.3x
Sat, 12 Apr 2025US$5.6tUS$581.3bUS$131.8b29.3x42.4x9.6x
Mon, 10 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.1x10.3x
Wed, 05 Feb 2025US$6.4tUS$585.8bUS$132.3b42.1x48.6x11x
Fri, 03 Jan 2025US$6.4tUS$569.1bUS$128.9b39.9x49.4x11.2x
Sun, 01 Dec 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Tue, 29 Oct 2024US$6.1tUS$552.6bUS$124.3b38.2x49.3x11.1x
Thu, 26 Sep 2024US$6.0tUS$552.4bUS$124.0b38x48.7x10.9x
Sat, 24 Aug 2024US$5.8tUS$550.2bUS$121.7b37.2x47.6x10.5x
Mon, 22 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Wed, 19 Jun 2024US$5.9tUS$531.3bUS$118.1b39.6x49.7x11x
Fri, 17 May 2024US$5.4tUS$474.1bUS$104.9b44.1x51.1x11.3x
Sun, 14 Apr 2024US$5.4tUS$466.3bUS$98.4b41.9x55x11.6x
Tue, 12 Mar 2024US$5.3tUS$470.2bUS$98.5b46.2x54.1x11.3x
Thu, 08 Feb 2024US$5.3tUS$463.9bUS$89.8b44.2x58.8x11.4x
Sat, 06 Jan 2024US$5.0tUS$486.2bUS$82.8b45.1x60.3x10.3x
Mon, 04 Dec 2023US$5.1tUS$485.3bUS$81.9b46.1x62.1x10.5x
Wed, 01 Nov 2023US$4.5tUS$484.8bUS$79.0b42.3x57.2x9.3x
Fri, 29 Sep 2023US$4.4tUS$477.4bUS$73.2b44.7x59.7x9.2x
Sun, 27 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Tue, 25 Jul 2023US$4.6tUS$460.9bUS$60.2b48.3x76.7x10x
Thu, 22 Jun 2023US$4.4tUS$460.5bUS$62.3b43.7x70.8x9.6x
Sat, 20 May 2023US$4.2tUS$457.1bUS$61.1b39.9x68.1x9.1x
Mon, 17 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Wed, 15 Mar 2023US$3.6tUS$453.7bUS$60.0b42.3x59.2x7.8x
Fri, 10 Feb 2023US$3.6tUS$436.7bUS$57.8b43.8x63.1x8.4x
Sun, 08 Jan 2023US$3.1tUS$434.4bUS$60.2b39.9x52x7.2x
Tue, 06 Dec 2022US$3.4tUS$433.4bUS$61.0b44.9x55.2x7.8x
Thu, 03 Nov 2022US$3.1tUS$420.4bUS$63.0b36.4x48.6x7.3x
Sat, 01 Oct 2022US$3.2tUS$413.6bUS$64.8b39.2x49.6x7.8x
Mon, 29 Aug 2022US$3.7tUS$412.2bUS$65.2b44.5x57.1x9x
Price to Earnings Ratio

57.1x


Total Market Cap: US$3.7tTotal Earnings: US$65.2bTotal Revenue: US$412.2bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.6x202320242025
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 48.8x which is lower than its 3-year average PE of 55.6x.
  • The 3-year average PS ratio of 10.1x is lower than the industry's current PS ratio of 11.9x.
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 Market-1.60%
Tech-3.57%
Software-3.04%
Systems Software-3.04%
Application Software-3.06%
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 23.6%, which is higher than its past year's earnings growth of 20.0% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 38.7x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • 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
CRM SalesforceUS$245.835.3%
+US$11.9b		-4.9%PE37.9x
PANW Palo Alto NetworksUS$183.325.6%
+US$6.5b		4.9%PE108x
NOW ServiceNowUS$876.973.1%
+US$5.4b		6.8%PE109.6x
ADBE AdobeUS$353.431.4%
+US$2.1b		-36.6%PE21.8x
WDAY WorkdayUS$227.582.6%
+US$1.5b		-1.5%PE124.7x

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