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U.S. Software Industry Analysis
UpdatedSep 14, 2025
DataAggregated Company Financials
Companies407
- 7D4.5%
- 3M7.4%
- 1Y26.6%
- YTD18.8%
In the last week, the Software industry is up 4.5%, with Oracle up 26%. In the same time, Synopsys was down 29%. In the last 12 months, the industry was up 27%. 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?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sun, 14 Sep 2025 | US$7.6t | US$620.7b | US$151.7b | 35.2x | 50.3x | 12.3x |
| Tue, 12 Aug 2025 | US$7.6t | US$614.0b | US$153.0b | 36.9x | 49.5x | 12.3x |
| Thu, 10 Jul 2025 | US$7.4t | US$598.9b | US$131.3b | 43.8x | 56.3x | 12.3x |
| Sat, 07 Jun 2025 | US$6.9t | US$595.8b | US$131.6b | 40.1x | 52.2x | 11.5x |
| Mon, 05 May 2025 | US$6.4t | US$589.0b | US$131.0b | 33.5x | 48.8x | 10.9x |
| Wed, 02 Apr 2025 | US$5.6t | US$581.4b | US$131.8b | 30.2x | 42.9x | 9.7x |
| Fri, 28 Feb 2025 | US$6.2t | US$580.5b | US$129.3b | 34.3x | 48.2x | 10.7x |
| Sun, 26 Jan 2025 | US$6.7t | US$568.2b | US$129.2b | 42.3x | 51.7x | 11.8x |
| Tue, 24 Dec 2024 | US$6.6t | US$569.2b | US$128.8b | 40.9x | 51.1x | 11.6x |
| Thu, 21 Nov 2024 | US$6.4t | US$566.7b | US$127.1b | 41x | 50.5x | 11.3x |
| Sat, 19 Oct 2024 | US$6.0t | US$551.7b | US$124.1b | 37.6x | 48.7x | 11x |
| Mon, 16 Sep 2024 | US$6.0t | US$552.4b | US$124.0b | 38.8x | 48.2x | 10.8x |
| Wed, 14 Aug 2024 | US$5.6t | US$548.7b | US$121.5b | 35.3x | 46x | 10.2x |
| Fri, 12 Jul 2024 | US$6.1t | US$530.5b | US$118.4b | 40.5x | 51.4x | 11.5x |
| Sun, 09 Jun 2024 | US$5.2t | US$477.7b | US$107.2b | 39.9x | 48.8x | 11x |
| Tue, 07 May 2024 | US$5.2t | US$476.8b | US$103.2b | 42.6x | 50.8x | 11x |
| Thu, 04 Apr 2024 | US$5.4t | US$466.0b | US$98.3b | 43.9x | 54.5x | 11.5x |
| Sat, 02 Mar 2024 | US$5.4t | US$468.6b | US$98.0b | 42.9x | 55.5x | 11.6x |
| Mon, 29 Jan 2024 | US$5.4t | US$486.8b | US$82.4b | 47.4x | 66.1x | 11.2x |
| Wed, 27 Dec 2023 | US$5.2t | US$486.1b | US$82.9b | 45x | 62.4x | 10.6x |
| Fri, 24 Nov 2023 | US$4.9t | US$482.5b | US$79.9b | 44.9x | 61.9x | 10.3x |
| Sun, 22 Oct 2023 | US$4.4t | US$477.3b | US$73.7b | 42x | 60.3x | 9.3x |
| Tue, 19 Sep 2023 | US$4.6t | US$480.1b | US$73.0b | 45.2x | 62.4x | 9.5x |
| Thu, 17 Aug 2023 | US$4.4t | US$473.1b | US$70.2b | 45x | 62.7x | 9.3x |
| Sat, 15 Jul 2023 | US$4.6t | US$460.7b | US$60.1b | 48.3x | 77x | 10x |
| Mon, 12 Jun 2023 | US$4.3t | US$460.1b | US$62.1b | 43.1x | 69.8x | 9.4x |
| Wed, 10 May 2023 | US$4.0t | US$455.6b | US$60.6b | 37.7x | 65.4x | 8.7x |
| Fri, 07 Apr 2023 | US$3.9t | US$453.7b | US$60.5b | 43.3x | 64.9x | 8.7x |
| Sun, 05 Mar 2023 | US$3.6t | US$453.1b | US$59.7b | 43.6x | 61.1x | 8x |
| Tue, 31 Jan 2023 | US$3.4t | US$435.5b | US$57.9b | 41.9x | 59x | 7.9x |
| Thu, 29 Dec 2022 | US$3.2t | US$434.3b | US$60.2b | 40.9x | 52.8x | 7.3x |
| Sat, 26 Nov 2022 | US$3.4t | US$430.5b | US$62.0b | 45.8x | 54.6x | 7.9x |
| Mon, 24 Oct 2022 | US$3.3t | US$412.8b | US$64.3b | 38.6x | 50.9x | 7.9x |
| Wed, 21 Sep 2022 | US$3.4t | US$413.7b | US$64.8b | 39.5x | 51.9x | 8.1x |
Price to Earnings Ratio
51.9x
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 50.3x 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 12.3x.
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 Market | 1.73% | |
| Tech | 3.59% | |
| Software | 4.45% | |
| Systems Software | 5.88% | |
| Application Software | 1.31% | |
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 24.9%, 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 38.9x.
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 16% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| ORCL Oracle | US$292.18 | 25.5% +US$166.8b | 80.3% | PE66x | |
| MSFT Microsoft | US$509.90 | 3.0% +US$110.8b | 18.4% | PE37.2x | |
| PLTR Palantir Technologies | US$171.43 | 12.0% +US$43.5b | 381.7% | PE532.8x | |
| APP AppLovin | US$582.00 | 18.7% +US$31.0b | 417.0% | PE78.3x | |
| NBIS Nebius Group | US$90.41 | 38.1% +US$6.0b | n/a | PE113.5x |