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U.S. Software Industry Analysis

UpdatedSep 23, 2025
DataAggregated Company Financials
Companies407
  • 7D2.7%
  • 3M9.4%
  • 1Y29.5%
  • YTD23.4%

The Software industry is up 2.7% in the last week, with Oracle up 8.6%. In the last 12 months, the industry was up 30%. Earnings are forecast to grow by 19% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 23 Sep 2025US$7.9tUS$620.8bUS$151.7b36.6x52.2x12.8x
Thu, 21 Aug 2025US$7.4tUS$614.8bUS$150.1b36.7x49x12x
Sat, 19 Jul 2025US$7.5tUS$596.3bUS$130.8b42.9x57.4x12.6x
Mon, 16 Jun 2025US$7.0tUS$598.9bUS$130.9b41.1x53.7x11.7x
Wed, 14 May 2025US$6.6tUS$590.8bUS$130.9b33.1x50.6x11.2x
Fri, 11 Apr 2025US$5.8tUS$581.3bUS$131.9b29.1x43.7x9.9x
Sun, 09 Mar 2025US$6.0tUS$582.3bUS$129.6b32.4x46.1x10.3x
Tue, 04 Feb 2025US$6.5tUS$585.9bUS$132.3b40.9x48.9x11x
Thu, 02 Jan 2025US$6.4tUS$569.1bUS$128.9b40.1x49.4x11.2x
Sat, 30 Nov 2024US$6.5tUS$566.8bUS$127.5b42.3x51.2x11.5x
Mon, 28 Oct 2024US$6.1tUS$552.6bUS$124.3b36.4x49.3x11.1x
Wed, 25 Sep 2024US$6.1tUS$552.4bUS$124.0b38.3x48.9x11x
Fri, 23 Aug 2024US$5.9tUS$549.4bUS$121.8b36.3x48.4x10.7x
Sun, 21 Jul 2024US$5.8tUS$530.6bUS$118.4b41x49.3x11x
Tue, 18 Jun 2024US$5.8tUS$531.3bUS$118.1b39.7x49.2x10.9x
Thu, 16 May 2024US$5.3tUS$474.0bUS$104.6b44.8x50.3x11.1x
Sat, 13 Apr 2024US$5.4tUS$466.3bUS$98.4b41.9x55x11.6x
Mon, 11 Mar 2024US$5.3tUS$470.2bUS$98.5b46.9x54.2x11.3x
Wed, 07 Feb 2024US$5.3tUS$462.8bUS$89.5b46.2x58.9x11.4x
Fri, 05 Jan 2024US$5.0tUS$486.2bUS$82.8b45.7x60.3x10.3x
Sun, 03 Dec 2023US$5.1tUS$485.3bUS$81.9b46.1x62.1x10.5x
Tue, 31 Oct 2023US$4.5tUS$484.8bUS$79.0b41.8x56.8x9.3x
Thu, 28 Sep 2023US$4.3tUS$477.4bUS$73.2b44.6x59.4x9.1x
Sat, 26 Aug 2023US$4.5tUS$474.4bUS$71.2b43.5x62.6x9.4x
Mon, 24 Jul 2023US$4.6tUS$460.9bUS$60.2b48x76.7x10x
Wed, 21 Jun 2023US$4.5tUS$460.5bUS$62.3b44.2x71.9x9.7x
Fri, 19 May 2023US$4.2tUS$457.1bUS$61.1b39.9x68.1x9.1x
Sun, 16 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x64.6x8.6x
Tue, 14 Mar 2023US$3.5tUS$453.6bUS$60.0b42x59x7.8x
Thu, 09 Feb 2023US$3.7tUS$436.7bUS$57.8b44x63.6x8.4x
Sat, 07 Jan 2023US$3.1tUS$434.4bUS$60.2b39.9x52x7.2x
Mon, 05 Dec 2022US$3.5tUS$433.4bUS$61.0b46.2x56.8x8x
Wed, 02 Nov 2022US$3.2tUS$418.8bUS$61.5b39.9x52x7.6x
Fri, 30 Sep 2022US$3.3tUS$413.7bUS$64.8b39.4x50.4x7.9x
Price to Earnings Ratio

50.4x


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 52.2x 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 12.8x.
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 Market1.31%
Tech3.11%
Software2.73%
Application Software5.08%
Systems Software1.72%
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 24.7%, 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
ORCL OracleUS$328.158.6%
+US$73.9b		97.7%PE75x
PLTR Palantir TechnologiesUS$179.334.7%
+US$19.3b		372.5%PE557.4x
SNPS SynopsysUS$514.7922.8%
+US$17.8b		1.8%PE82x
APP AppLovinUS$643.508.5%
+US$17.0b		410.2%PE86.6x
INTU IntuitUS$702.097.8%
+US$14.2b		9.4%PE50.6x

Latest News

ORCL
US$328.15
Oracle
7D
8.6%
1Y
97.7%
GWRE
US$244.60
Guidewire Software
7D
-2.6%
1Y
40.6%

Accelerating Cloud Adoption And AI Will Transform Future Of Insurance Industry

Guidewire Software’s analyst price target was raised to $268.38 as strong Q4 results, accelerating cloud deals, landmark client wins, and above-consensus long-term guidance reinforce market leadership and visibility. Analyst Commentary Multiple bullish analysts highlight Guidewire's strong Q4 results, with broad-based beats driven by a record number of cloud deals (19), accelerating bookings, and subscription revenue up 33% year-over-year.
APP
US$643.50
AppLovin
7D
8.5%
1Y
410.2%
TTAN
US$110.78
ServiceTitan
7D
-4.3%
1Y
n/a
NTNX
US$75.38
Nutanix
7D
-3.6%
1Y
23.5%
INTU
US$702.09
Intuit
7D
7.8%
1Y
9.4%

Intuit's (NASDAQ:INTU) Dividend Will Be Increased To $1.20

Sep 19
Intuit's (NASDAQ:INTU) Dividend Will Be Increased To $1.20
CRWD
US$493.14
CrowdStrike Holdings
7D
10.9%
1Y
68.2%

Falcon Flex And AI Capabilities Will Strengthen Future Position In Cloud Security Market

Analysts raised CrowdStrike’s price target to $481.53 (+2.6%) driven by optimism around its expanding AI and security portfolio, long-term ARR growth targets, supportive guidance, and strong customer demand, despite some caution regarding near-term ARR flow-through and revenue translation. Analyst Commentary Bullish analysts cited CrowdStrike’s expanding product portfolio—especially into AI, identity, and agentic solutions—as accelerating growth vectors and supporting premium valuation multiples.
ZM
US$83.53
Zoom Communications
7D
-1.3%
1Y
21.4%

AI Features Will Expand Enterprise Markets Despite Cloud Competition

The consensus analyst price target for Zoom Communications edged up to $92.30, as strong Q2 results, accelerating revenue growth, expanding AI-driven products, and robust large-customer momentum outweighed ongoing macro uncertainties. Analyst Commentary Bullish analysts raised price targets due to solid Q2 results, with the company's revenue growth reaching its highest level in 11 quarters, providing quarterly beats and upgraded forward guidance.
SNPS
US$514.79
Synopsys
7D
22.8%
1Y
1.8%
MSFT
US$514.45
Microsoft
7D
-0.2%
1Y
18.7%
TEAM
US$170.63
Atlassian
7D
-1.9%
1Y
5.3%
RZLV
US$6.38
Rezolve AI
7D
-17.4%
1Y
15.4%
FICO
US$1,538.95
Fair Isaac
7D
-1.0%
1Y
-21.0%
ADBE
US$364.08
Adobe
7D
4.9%
1Y
-31.0%
CRM
US$249.69
Salesforce
7D
3.0%
1Y
-5.5%
PLTR
US$179.33
Palantir Technologies
7D
4.7%
1Y
372.5%