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U.S. Software Industry Analysis

UpdatedApr 03, 2026
DataAggregated Company Financials
Companies429
  • 7D1.3%
  • 3M-21.6%
  • 1Y-3.5%
  • YTD-21.6%

In the last week, the Software industry is up 1.3%, with Microsoft up 2.0%. In the same time, Strategy was down 9.9%. In the past year, the industry is down 3.5%. 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
Fri, 03 Apr 2026US$5.4tUS$668.3bUS$161.4b30x33.2x8x
Sun, 01 Mar 2026US$5.6tUS$664.9bUS$163.7b26.4x34.1x8.4x
Tue, 27 Jan 2026US$6.7tUS$649.0bUS$159.9b30x41.9x10.3x
Thu, 25 Dec 2025US$7.2tUS$645.4bUS$164.7b31.9x43.8x11.2x
Sat, 22 Nov 2025US$6.8tUS$640.4bUS$160.2b29.6x42.7x10.7x
Mon, 20 Oct 2025US$7.7tUS$621.4bUS$151.7b34.9x50.8x12.4x
Wed, 17 Sep 2025US$7.7tUS$620.9bUS$151.9b34.7x50.9x12.5x
Fri, 15 Aug 2025US$7.5tUS$614.4bUS$153.3b36x49.2x12.3x
Sun, 13 Jul 2025US$7.3tUS$598.9bUS$131.4b41.8x55.6x12.2x
Tue, 10 Jun 2025US$6.9tUS$595.8bUS$131.6b40.9x52.7x11.7x
Thu, 08 May 2025US$6.3tUS$589.6bUS$131.3b33.8x48.2x10.7x
Sat, 05 Apr 2025US$5.5tUS$581.4bUS$131.8b28.8x42x9.5x
Mon, 03 Mar 2025US$6.2tUS$580.6bUS$129.1b34.5x47.6x10.6x
Wed, 29 Jan 2025US$6.6tUS$576.9bUS$129.4b43.6x51.3x11.5x
Fri, 27 Dec 2024US$6.6tUS$569.1bUS$128.8b41.1x51.5x11.6x
Sun, 24 Nov 2024US$6.5tUS$567.3bUS$127.2b42.4x51.3x11.5x
Tue, 22 Oct 2024US$6.1tUS$551.7bUS$124.1b37.5x48.9x11x
Thu, 19 Sep 2024US$6.0tUS$552.4bUS$124.0b38.7x48.6x10.9x
Sat, 17 Aug 2024US$5.8tUS$548.8bUS$121.5b36x47.8x10.6x
Mon, 15 Jul 2024US$6.0tUS$530.6bUS$118.4b40.7x50.9x11.4x
Wed, 12 Jun 2024US$5.3tUS$477.8bUS$107.3b40x49.2x11x
Fri, 10 May 2024US$5.2tUS$474.1bUS$104.8b44.3x49.6x11x
Sun, 07 Apr 2024US$5.4tUS$466.0bUS$98.3b43.2x54.8x11.6x
Tue, 05 Mar 2024US$5.4tUS$468.6bUS$98.1b43.2x55.4x11.6x
Thu, 01 Feb 2024US$5.5tUS$496.1bUS$87.9b46.3x62.9x11.1x
Sat, 30 Dec 2023US$5.2tUS$486.2bUS$82.8b47.3x62.5x10.7x
Mon, 27 Nov 2023US$5.0tUS$482.6bUS$79.9b46.4x62.4x10.3x
Wed, 25 Oct 2023US$4.5tUS$477.3bUS$73.7b41.9x60.5x9.3x
Fri, 22 Sep 2023US$4.4tUS$480.7bUS$73.0b45.1x60.4x9.2x
Sun, 20 Aug 2023US$4.3tUS$474.4bUS$70.6b42.8x61.5x9.2x
Tue, 18 Jul 2023US$4.6tUS$460.7bUS$60.1b49x77x10x
Thu, 15 Jun 2023US$4.5tUS$460.1bUS$62.1b44.6x71.9x9.7x
Sat, 13 May 2023US$4.0tUS$456.8bUS$61.1b39.2x65.3x8.7x
Mon, 10 Apr 2023US$3.9tUS$453.6bUS$60.5b43.2x65x8.7x
Price to Earnings Ratio

65x


Total Market Cap: US$3.9tTotal Earnings: US$60.5bTotal Revenue: US$453.6bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 53.1x202420252026
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 33.2x which is lower than its 3-year average PE of 53.1x.
  • The 3-year average PS ratio of 10.7x is higher than the industry's current PS ratio of 8.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 39% 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 Market1.90%
Tech2.41%
Software1.34%
Systems Software2.02%
Application Software-0.15%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio of 21.0x.
    • Analysts are expecting annual earnings growth of 25.4%, which is higher than its past year's earnings growth of 18.3% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading below its 3-year average of 39.8x.
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 18% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 16% 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
MSFT MicrosoftUS$373.462.0%
+US$55.6b		0.09%PE23.3x
ORCL OracleUS$146.382.5%
+US$10.3b		6.7%PE26x
PANW Palo Alto NetworksUS$163.214.4%
+US$5.6b		-1.2%PE103.3x
U Unity SoftwareUS$22.7532.8%
+US$2.5b		25.1%PS5.4x
PLTR Palantir TechnologiesUS$148.460.6%
+US$2.2b		77.6%PE218.5x

Latest News

PLTR
US$148.46
Palantir Technologies
7D
0.6%
1Y
77.6%
ORCL
US$146.38
Oracle
7D
2.5%
1Y
6.7%

Oracle: Building Immunity To 'SaaSpocalypse' As It Lives Up To Its AI Potential

Apr 02
CRCL
US$90.26
Circle Internet Group
7D
-8.2%
1Y
n/a
DDOG
US$120.36
Datadog
7D
5.1%
1Y
36.9%
APP
US$386.37
AppLovin
7D
-1.2%
1Y
47.5%
INTU
US$422.48
Intuit
7D
-2.3%
1Y
-29.4%
NOW
US$102.00
ServiceNow
7D
-1.6%
1Y
-34.1%
PANW
US$163.21
Palo Alto Networks
7D
4.4%
1Y
-1.2%
U
US$22.75
Unity Software
7D
32.8%
1Y
25.1%

U: Ad Network Exit And Publishing Divestiture Will Support Future Upside Potential

Analysts have trimmed their price target for Unity Software slightly to $32.04 from $32.33, reflecting updated views on revenue growth, profit margins, discount rates, and future P/E assumptions. What's in the News Unity plans to sunset the ironSource Ads Network effective April 30 and has hired a financial advisor to explore divesting its Supersonic game publishing business, with management indicating expectations for faster revenue growth, higher Adjusted EBITDA, and higher Adjusted EBITDA margins once these changes are completed.
IREN
US$34.77
IREN
7D
-7.2%
1Y
475.7%

IREN: Microsoft AI Contract Will Drive Transformative Data Center Expansion

The Street's blended 12 month price target for IREN has shifted modestly lower to about $76 from roughly $79, as analysts balance Macquarie's $25 cut with fresh Buy upgrades and a higher $80 target tied to IREN's large AI contract with Microsoft and a sizeable data center growth pipeline. Analyst Commentary Recent Street research on IREN shows a mix of optimism around growth optionality and caution around execution and valuation, which is feeding into the wide range of price targets and rating changes.
CDNS
US$278.72
Cadence Design Systems
7D
-0.7%
1Y
12.0%

CDNS: AI Software Demand And NVIDIA Partnership Will Drive Shares Higher

Analysts have trimmed the blended price target on Cadence Design Systems by about $12 to reflect lower applied P/E multiples amid broader software volatility, even as they highlight solid Q4 results, raised long term EPS estimates, and ongoing AI related demand as key supports for the updated outlook. Analyst Commentary Recent research points to a mixed but generally constructive view on Cadence Design Systems, with analysts adjusting price targets to account for software sector volatility while still pointing to execution on earnings and demand as support for the equity story.
SNPS
US$395.95
Synopsys
7D
-1.5%
1Y
-5.2%
MSFT
US$373.46
Microsoft
7D
2.0%
1Y
0.09%

Everyone's Terrified Microsoft Will Keep Spending. I'm Terrified They'll Stop.

Microsoft just burned $37.5 billion in 90 days. The stock has lost a third of its value.
CRWD
US$399.12
CrowdStrike Holdings
7D
1.7%
1Y
14.9%
CRM
US$187.18
Salesforce
7D
0.8%
1Y
-26.7%

CRM: AI Execution Debt-Funded Buybacks And AI Fears Will Shape Risk Balance

Analysts have kept the fair value estimate for Salesforce steady at $190, while slightly adjusting assumptions such as discount rate, revenue growth, profit margin, and future P/E to reflect mixed Q4 trends, widespread price target cuts across the Street, and increasing focus on the potential of Agentforce and AI driven offerings, alongside softer near term organic growth expectations. Analyst Commentary Street research around the latest Q4 report has turned more cautious, even as many firms still see potential in Salesforce's AI and Agentforce roadmap.
MSTR
US$119.83
Strategy
7D
-9.9%
1Y
-57.5%