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U.S. Software Industry Analysis

UpdatedSep 19, 2025
DataAggregated Company Financials
Companies408
  • 7D1.0%
  • 3M10.2%
  • 1Y26.4%
  • YTD20.8%

Over the last 7 days, the Software industry has remained flat, although notably Palantir Technologies gained 7.7%. The past year has been better, since the industry has gained 28% 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
Fri, 19 Sep 2025US$7.7tUS$620.8bUS$151.7b35.4x50.7x12.4x
Sun, 17 Aug 2025US$7.5tUS$614.4bUS$150.3b35.7x50.2x12.3x
Tue, 15 Jul 2025US$7.3tUS$598.9bUS$131.4b42.9x55.7x12.2x
Thu, 12 Jun 2025US$6.9tUS$593.9bUS$131.6b40.9x52.6x11.7x
Sat, 10 May 2025US$6.5tUS$590.8bUS$130.8b33.7x49.3x10.9x
Mon, 07 Apr 2025US$5.3tUS$581.3bUS$131.8b28.8x39.9x9.1x
Wed, 05 Mar 2025US$6.0tUS$580.7bUS$129.4b34.5x46.6x10.4x
Fri, 31 Jan 2025US$6.7tUS$585.4bUS$132.1b41.2x50.4x11.4x
Sun, 29 Dec 2024US$6.5tUS$569.1bUS$128.8b40.7x50.5x11.4x
Tue, 26 Nov 2024US$6.5tUS$566.0bUS$127.5b42.2x51.1x11.5x
Thu, 24 Oct 2024US$6.1tUS$552.0bUS$124.1b37.2x49.3x11.1x
Sat, 21 Sep 2024US$6.1tUS$552.4bUS$124.0b38.4x49.2x11x
Mon, 19 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.7x10.6x
Wed, 17 Jul 2024US$6.1tUS$530.6bUS$118.4b41.7x51.1x11.4x
Fri, 14 Jun 2024US$5.8tUS$530.8bUS$117.8b39.9x48.9x10.9x
Sun, 12 May 2024US$5.2tUS$474.3bUS$104.2b43.4x50.2x11x
Tue, 09 Apr 2024US$5.4tUS$466.0bUS$98.3b43.3x54.8x11.6x
Thu, 07 Mar 2024US$5.2tUS$470.0bUS$98.4b45x53.3x11.2x
Sat, 03 Feb 2024US$5.5tUS$497.2bUS$87.9b46x63x11.1x
Mon, 01 Jan 2024US$5.2tUS$486.1bUS$82.9b47.3x62.3x10.6x
Wed, 29 Nov 2023US$5.0tUS$482.7bUS$80.2b46.5x62.3x10.4x
Fri, 27 Oct 2023US$4.4tUS$484.6bUS$78.9b41.4x55.8x9.1x
Sun, 24 Sep 2023US$4.4tUS$477.4bUS$73.2b45.4x60x9.2x
Tue, 22 Aug 2023US$4.3tUS$473.7bUS$70.6b43.7x61.5x9.2x
Thu, 20 Jul 2023US$4.8tUS$460.7bUS$60.1b49.5x79.2x10.3x
Sat, 17 Jun 2023US$4.5tUS$460.5bUS$62.3b46.8x72.7x9.8x
Mon, 15 May 2023US$4.0tUS$456.8bUS$61.1b39.2x65.4x8.7x
Wed, 12 Apr 2023US$3.9tUS$453.6bUS$60.5b43.6x63.9x8.5x
Fri, 10 Mar 2023US$3.6tUS$453.5bUS$59.8b42.6x59.7x7.9x
Sun, 05 Feb 2023US$3.6tUS$436.2bUS$57.8b44.8x62.6x8.3x
Tue, 03 Jan 2023US$3.3tUS$434.4bUS$60.2b42x54.2x7.5x
Thu, 01 Dec 2022US$3.5tUS$431.4bUS$61.3b44.6x56.6x8x
Sat, 29 Oct 2022US$3.3tUS$418.7bUS$61.5b39.7x53.5x7.9x
Mon, 26 Sep 2022US$3.3tUS$413.7bUS$64.8b39.4x50.3x7.9x
Price to Earnings Ratio

50.3x


Total Market Cap: US$3.3tTotal Earnings: US$64.8bTotal Revenue: US$413.7bTotal 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 50.7x 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 12.4x.
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 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 Market0.71%
Tech0.82%
Software0.95%
Application Software3.97%
Systems Software-0.31%
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 19.1% 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 39.0x.
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 19% 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
PLTR Palantir TechnologiesUS$176.977.7%
+US$29.9b		380.5%PE550x
CRWD CrowdStrike HoldingsUS$502.6316.0%
+US$17.4b		81.2%PS29.1x
APP AppLovinUS$621.528.8%
+US$17.0b		401.2%PE83.6x
SNPS SynopsysUS$480.119.6%
+US$7.8b		-6.6%PE76.4x
ADBE AdobeUS$367.464.8%
+US$7.2b		-30.2%PE22.4x

Latest News

MSFT
US$508.45
Microsoft
7D
-0.3%
1Y
16.8%
CRWD
US$502.63
CrowdStrike Holdings
7D
16.0%
1Y
81.2%
INTU
US$674.96
Intuit
7D
2.2%
1Y
3.2%
TEAM
US$169.63
Atlassian
7D
-4.0%
1Y
4.0%
SNPS
US$480.11
Synopsys
7D
9.6%
1Y
-6.6%

Integration Of Ansys And AI Trends Will Drive Engineering Excellence

Analysts have lowered Synopsys’ price target from $652.74 to $569.19 due to continued weakness and structural uncertainty in the IP segment—driven by China-related demand softness and muted foundry opportunities—despite optimism around the Ansys acquisition and stable performance in the company’s remaining businesses. Analyst Commentary Weakness in the IP segment, driven by cautious Chinese customer behavior post-BIS restrictions, delayed design starts, and shaken confidence has led to multi-quarter revenue pressure; questions remain whether the IP challenges are structural or temporary.
APP
US$621.52
AppLovin
7D
8.8%
1Y
401.2%

AXON And Shopify Integration Will Unlock Global Mobile Advertising

The upward revision in AppLovin’s price target reflects a modest increase in its expected future P/E multiple while revenue growth forecasts remain largely unchanged, resulting in a new consensus target of $517.81. What's in the News Repurchased 732,000 shares for $270.03 million from April to June, completing the buyback of 75.45 million shares (21.07%) for $3.67 billion.
ORCL
US$296.62
Oracle
7D
-3.7%
1Y
77.0%
DDOG
US$136.81
Datadog
7D
-1.7%
1Y
18.4%
FICO
US$1,522.10
Fair Isaac
7D
-4.7%
1Y
-21.1%
ADBE
US$367.46
Adobe
7D
4.8%
1Y
-30.2%
CRM
US$244.28
Salesforce
7D
-0.8%
1Y
-8.2%
TYL
US$530.05
Tyler Technologies
7D
-4.3%
1Y
-8.7%
PLTR
US$176.97
Palantir Technologies
7D
7.7%
1Y
380.5%
PANW
US$205.68
Palo Alto Networks
7D
3.7%
1Y
23.3%
ROP
US$509.01
Roper Technologies
7D
-1.6%
1Y
-9.2%
MSTR
US$349.12
Strategy
7D
7.1%
1Y
141.3%

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