Investing IdeasBrowse All StocksMarkets
Have your own idea? Try our Stock Screener
Header cover image

U.S. Software Industry Analysis

UpdatedSep 10, 2025
DataAggregated Company Financials
Companies409
  • 7D1.2%
  • 3M6.3%
  • 1Y27.3%
  • YTD15.8%

Over the last 7 days, the Software industry has remained flat, although notably Oracle gained 5.5%. As for the the longer term, the industry is up 29% over the past 12 months. 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
Wed, 10 Sep 2025US$7.4tUS$618.2bUS$151.4b36.2x49.1x12x
Fri, 08 Aug 2025US$7.7tUS$612.0bUS$149.1b37.6x51.4x12.5x
Sun, 06 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Tue, 03 Jun 2025US$6.8tUS$593.5bUS$131.7b35.5x51.3x11.4x
Thu, 01 May 2025US$6.0tUS$581.7bUS$131.6b31.7x45.4x10.3x
Sat, 29 Mar 2025US$5.9tUS$582.3bUS$130.7b29.3x45x10.1x
Mon, 24 Feb 2025US$6.4tUS$580.0bUS$129.9b38.2x49x11x
Wed, 22 Jan 2025US$6.4tUS$569.2bUS$129.3b41.3x49.8x11.3x
Fri, 20 Dec 2024US$6.5tUS$569.1bUS$128.8b40.6x50.6x11.5x
Sun, 17 Nov 2024US$6.3tUS$566.6bUS$127.1b41.4x49.9x11.2x
Tue, 15 Oct 2024US$6.1tUS$551.7bUS$124.1b40.4x48.9x11x
Thu, 12 Sep 2024US$5.9tUS$552.2bUS$123.6b37.4x47.7x10.7x
Sat, 10 Aug 2024US$5.5tUS$548.4bUS$121.8b35x45.5x10.1x
Mon, 08 Jul 2024US$6.2tUS$530.5bUS$118.1b40.9x52.3x11.6x
Wed, 05 Jun 2024US$5.1tUS$476.3bUS$107.0b40.1x47.6x10.7x
Fri, 03 May 2024US$5.0tUS$476.5bUS$103.0b41.9x48.8x10.5x
Sun, 31 Mar 2024US$5.4tUS$465.9bUS$98.3b46x55x11.6x
Tue, 27 Feb 2024US$5.3tUS$466.3bUS$93.2b43.7x57.2x11.4x
Thu, 25 Jan 2024US$5.4tUS$486.2bUS$82.2b44.5x65.8x11.1x
Sat, 23 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Mon, 20 Nov 2023US$4.9tUS$482.4bUS$79.8b45.3x61.5x10.2x
Wed, 18 Oct 2023US$4.6tUS$477.3bUS$73.7b43.3x62.1x9.6x
Fri, 15 Sep 2023US$4.6tUS$479.6bUS$72.7b45.6x63.7x9.7x
Sun, 13 Aug 2023US$4.4tUS$473.0bUS$70.1b45.8x63x9.3x
Tue, 11 Jul 2023US$4.5tUS$460.7bUS$60.4b47.8x73.9x9.7x
Thu, 08 Jun 2023US$4.4tUS$459.9bUS$62.0b42.2x71.1x9.6x
Sat, 06 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Mon, 03 Apr 2023US$4.0tUS$453.7bUS$60.6b44.4x65.5x8.7x
Wed, 01 Mar 2023US$3.5tUS$440.1bUS$58.9b42.3x59.1x7.9x
Fri, 27 Jan 2023US$3.5tUS$436.2bUS$58.0b42.4x59.8x8x
Sun, 25 Dec 2022US$3.2tUS$434.3bUS$60.3b41.7x53.7x7.5x
Tue, 22 Nov 2022US$3.3tUS$430.3bUS$62.3b44.6x52.8x7.7x
Thu, 20 Oct 2022US$3.2tUS$412.8bUS$64.3b38.4x49.8x7.7x
Sat, 17 Sep 2022US$3.4tUS$413.7bUS$64.8b39.8x52.6x8.2x
Price to Earnings Ratio

52.6x


Total Market Cap: US$3.4tTotal 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 48.3x 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 11.8x.
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 Market1.39%
Tech2.28%
Software1.22%
Application Software2.96%
Systems Software0.43%
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 24.3%, 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 38.9x.
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 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
ORCL OracleUS$241.517.2%
+US$45.5b		54.9%PE54.5x
APP AppLovinUS$558.1715.9%
+US$25.9b		547.3%PE75.1x
PLTR Palantir TechnologiesUS$162.363.4%
+US$12.5b		367.1%PE504.6x
NBIS Nebius GroupUS$95.7245.6%
+US$7.2b		n/aPE120.1x
PANW Palo Alto NetworksUS$197.553.7%
+US$4.7b		13.7%PE116.5x

Latest News

NBIS
US$95.72
Nebius Group
7D
45.6%
1Y
n/a
CDNS
US$361.77
Cadence Design Systems
7D
4.2%
1Y
36.7%
PTC
US$204.03
PTC
7D
-4.0%
1Y
22.2%

Does PTC (NASDAQ:PTC) Have A Healthy Balance Sheet?

Sep 09
Does PTC (NASDAQ:PTC) Have A Healthy Balance Sheet?
APP
US$558.17
AppLovin
7D
15.9%
1Y
547.3%
ADBE
US$354.06
Adobe
7D
2.4%
1Y
-38.4%

Firefly And GenStudio Will Transform Marketing And Boost Future Engagement

Analysts moderately lowered Adobe's price target to $475.45 amid mixed views—bulls cite resilient margins, disciplined execution, and AI potential, while bears flag Creative Cloud market share losses and AI competition—leaving fair value edging slightly lower. Analyst Commentary Bullish analysts highlight Adobe’s potential as a long-term AI winner, citing its commercially safe generative content approach, resilient top line, disciplined expense management, and industry-leading margins as supportive of attractive long-term value.
CRM
US$252.06
Salesforce
7D
-0.3%
1Y
2.4%
FIG
US$53.32
Figma
7D
-18.7%
1Y
n/a
CRCL
US$117.99
Circle Internet Group
7D
-1.8%
1Y
n/a
PLTR
US$162.36
Palantir Technologies
7D
3.4%
1Y
367.1%
WDAY
US$230.73
Workday
7D
-1.2%
1Y
-9.7%
MSFT
US$498.41
Microsoft
7D
-1.3%
1Y
20.3%
PANW
US$197.55
Palo Alto Networks
7D
3.7%
1Y
13.7%
NOW
US$933.67
ServiceNow
7D
2.4%
1Y
8.5%

AI And CRM Integration Will Unlock Future Market Opportunities

With both ServiceNow’s Net Profit Margin and Discount Rate essentially unchanged, the consensus analyst price target remains steady at $1,143. What's in the News ServiceNow announced a landmark OneGov agreement with the U.S. General Services Administration, offering substantial discounts (up to 70%) for AI-powered IT service management solutions to federal agencies and accelerating government modernization with comprehensive AI workflow tools.
ORCL
US$241.51
Oracle
7D
7.2%
1Y
54.9%

Multi-cloud Partnerships With AWS, Google, And Azure Will Accelerate Future Prospects

Analysts highlight Oracle's accelerating AI-driven growth, bolstered by major cloud contracts and robust application demand, though some caution over valuation as these positives appear priced in—leaving the consensus price target unchanged at $244.31. Analyst Commentary Bullish analysts point to Oracle's emergence as a structural winner in artificial intelligence, with unique OCI architecture driving a surge in AI-related demand and a pronounced inflection in growth.
CXM
US$7.85
Sprinklr
7D
-8.7%
1Y
6.7%
MSTR
US$328.53
Strategy
7D
-3.8%
1Y
153.4%

Strategy's (NASDAQ:MSTR) Profits Appear To Have Quality Issues

Aug 18
Strategy's (NASDAQ:MSTR) Profits Appear To Have Quality Issues