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U.S. Software Industry Analysis

UpdatedSep 04, 2025
DataAggregated Company Financials
Companies408
  • 7D-0.8%
  • 3M5.9%
  • 1Y28.0%
  • YTD14.5%

Last week, the Software industry hasn't moved much but AppLovin is up 5.3% in that time. 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 18% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 05 Sep 2025US$7.3tUS$616.8bUS$150.8b36.6x48.7x11.9x
Sun, 03 Aug 2025US$7.6tUS$611.0bUS$146.9b39.7x51.4x12.4x
Tue, 01 Jul 2025US$7.2tUS$599.0bUS$131.2b42.2x55.1x12.1x
Thu, 29 May 2025US$6.8tUS$593.0bUS$131.7b36.5x51.4x11.4x
Sat, 26 Apr 2025US$5.9tUS$581.1bUS$131.9b32x44.4x10.1x
Mon, 24 Mar 2025US$5.9tUS$582.8bUS$131.2b29.5x45.2x10.2x
Wed, 19 Feb 2025US$6.6tUS$588.2bUS$130.0b42.2x50.8x11.2x
Fri, 17 Jan 2025US$6.4tUS$569.2bUS$129.3b40.1x49.3x11.2x
Sun, 15 Dec 2024US$6.7tUS$569.1bUS$128.8b41.7x52.3x11.8x
Tue, 12 Nov 2024US$6.4tUS$567.0bUS$123.7b41.4x51.8x11.3x
Thu, 10 Oct 2024US$6.0tUS$551.7bUS$124.1b38.1x48.2x10.8x
Sat, 07 Sep 2024US$5.6tUS$551.3bUS$123.1b34.9x45.6x10.2x
Mon, 05 Aug 2024US$5.5tUS$541.8bUS$120.2b38.2x45.8x10.1x
Wed, 03 Jul 2024US$6.0tUS$530.5bUS$118.1b40.8x51.2x11.4x
Fri, 31 May 2024US$5.1tUS$476.0bUS$106.9b39.1x47.6x10.7x
Sun, 28 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Tue, 26 Mar 2024US$5.5tUS$465.8bUS$98.0b45.1x55.8x11.7x
Thu, 22 Feb 2024US$5.2tUS$465.6bUS$92.5b43.6x56.5x11.2x
Sat, 20 Jan 2024US$5.3tUS$486.2bUS$82.1b46.4x64.9x11x
Mon, 18 Dec 2023US$5.1tUS$486.1bUS$82.9b47.3x61.6x10.5x
Wed, 15 Nov 2023US$4.8tUS$482.2bUS$79.6b45.1x60.7x10x
Fri, 13 Oct 2023US$4.6tUS$477.3bUS$73.7b45.1x62.3x9.6x
Sun, 10 Sep 2023US$4.6tUS$476.3bUS$72.9b44.8x63.6x9.7x
Tue, 08 Aug 2023US$4.5tUS$473.0bUS$68.4b48.4x66.2x9.6x
Thu, 06 Jul 2023US$4.5tUS$460.7bUS$60.4b47.7x74.4x9.8x
Sat, 03 Jun 2023US$4.4tUS$459.8bUS$62.0b42.6x70.9x9.6x
Mon, 01 May 2023US$4.0tUS$457.3bUS$62.5b42.2x64.2x8.8x
Wed, 29 Mar 2023US$3.8tUS$453.7bUS$59.7b42.6x63.4x8.3x
Fri, 24 Feb 2023US$3.6tUS$437.5bUS$58.5b42.7x60.7x8.1x
Sun, 22 Jan 2023US$3.4tUS$434.5bUS$60.2b42.3x55.7x7.7x
Tue, 20 Dec 2022US$3.3tUS$434.3bUS$60.3b41.7x54x7.5x
Thu, 17 Nov 2022US$3.3tUS$424.9bUS$62.5b46.2x53.1x7.8x
Sat, 15 Oct 2022US$3.1tUS$412.8bUS$64.3b36.9x47.9x7.5x
Mon, 12 Sep 2022US$3.7tUS$413.1bUS$64.9b42.8x57x8.9x
Price to Earnings Ratio

57x


Total Market Cap: US$3.7tTotal Earnings: US$64.9bTotal Revenue: US$413.1bTotal 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 48.7x which is lower than its 3-year average PE of 55.5x.
  • 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-0.60%
Tech-1.34%
Software-0.82%
Application Software0.10%
Systems Software-1.23%
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 24.5%, 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 38.8x.
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 20% 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
ADSK AutodeskUS$319.9310.9%
+US$6.7b		27.1%PE65.6x
APP AppLovinUS$499.973.4%
+US$5.5b		466.9%PE67.3x
PANW Palo Alto NetworksUS$192.350.7%
+US$1.1b		11.9%PE113.5x
IREN IRENUS$26.1313.4%
+US$840.4m		286.0%PE81.7x
WDAY WorkdayUS$231.131.2%
+US$702.2m		-9.6%PE105.9x

Latest News

PLTR
US$156.14
Palantir Technologies
7D
-1.3%
1Y
417.7%
CRM
US$244.01
Salesforce
7D
-4.1%
1Y
-0.9%
WDAY
US$231.13
Workday
7D
1.2%
1Y
-9.6%
MSFT
US$507.97
Microsoft
7D
-0.3%
1Y
24.4%
NOW
US$898.56
ServiceNow
7D
-3.2%
1Y
7.6%
PANW
US$192.35
Palo Alto Networks
7D
0.7%
1Y
11.9%
CRWD
US$412.46
CrowdStrike Holdings
7D
-6.7%
1Y
60.8%
FIG
US$54.56
Figma
7D
-23.4%
1Y
n/a
ORCL
US$223.00
Oracle
7D
-7.2%
1Y
56.4%
ADBE
US$344.31
Adobe
7D
-2.7%
1Y
-39.4%
IDCC
US$287.88
InterDigital
7D
5.3%
1Y
114.8%
APP
US$499.97
AppLovin
7D
3.4%
1Y
466.9%

AXON And Shopify Integration Will Unlock Global Mobile Advertising

AppLovin’s valuation outlook remains stable, with both its future P/E and discount rate essentially unchanged, resulting in only a slight increase in the consensus analyst price target from $493.19 to $499.14. What's in the News Repurchased 732,000 shares for $270.03 million, completing 75,452,556 shares or 21.07% under the buyback program since February 2022.
IREN
US$26.13
IREN
7D
13.4%
1Y
286.0%

Childress And Sweetwater Projects Will Lead A Digital Transformation

Analysts have significantly raised IREN’s price target due to record Q4 results, accelerated AI cloud expansion fueled by a major Nvidia GPU acquisition and preferred partner status, and sharply upgraded revenue growth projections, resulting in a new consensus target of $27.55. Analyst Commentary Bullish analysts raised price targets due to IREN’s record Q4 results and accelerated near-term expansion in artificial intelligence cloud services after acquiring 2,400 of Nvidia’s latest-generation GPUs. IREN’s newly secured Nvidia preferred partner status is expected to improve its GPU procurement and strengthen its competitive position in the AI infrastructure market.
ADSK
US$319.93
Autodesk
7D
10.9%
1Y
27.1%

Investments In Cloud And AI Will Expand Future Customer Ecosystem

Driven by Autodesk’s stronger-than-expected Q2 results, upgraded guidance, long-term margin expansion targets, and improved revenue prospects—partially offset by macro and margin model concerns—the consensus analyst price target has increased from $342.07 to $356.55. Analyst Commentary Stronger-than-expected fiscal Q2 results and upgraded full-year (FY26) guidance, with revenue growth accelerating and beats across key operating metrics.
ZM
US$82.79
Zoom Communications
7D
2.4%
1Y
23.1%
NTNX
US$68.67
Nutanix
7D
4.0%
1Y
9.3%