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U.S. Software Industry Analysis

UpdatedOct 02, 2025
DataAggregated Company Financials
Companies411
  • 7D0.2%
  • 3M4.8%
  • 1Y30.6%
  • YTD21.4%

The Software industry has been flat over the last week, but Oracle has lost 6.3%. The past year has been better, since the industry has gained 31% in that time. 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
Thu, 02 Oct 2025US$7.8tUS$621.0bUS$151.9b35.5x51.4x12.6x
Sat, 30 Aug 2025US$7.5tUS$616.5bUS$150.7b34.9x49.5x12.1x
Mon, 28 Jul 2025US$7.6tUS$597.2bUS$130.9b45.7x57.8x12.7x
Wed, 25 Jun 2025US$7.2tUS$599.0bUS$131.1b42.5x55x12.1x
Fri, 23 May 2025US$6.6tUS$591.8bUS$131.4b35.6x50.6x11.2x
Sun, 20 Apr 2025US$5.5tUS$580.5bUS$131.7b30x41.7x9.4x
Tue, 18 Mar 2025US$5.9tUS$582.9bUS$131.2b28.3x44.7x10.1x
Thu, 13 Feb 2025US$6.5tUS$587.2bUS$131.5b42.3x49.8x11.1x
Sat, 11 Jan 2025US$6.4tUS$569.1bUS$129.3b38.8x49.3x11.2x
Mon, 09 Dec 2024US$6.9tUS$566.7bUS$128.2b43.4x53.5x12.1x
Wed, 06 Nov 2024US$6.0tUS$562.1bUS$126.3b35.5x47.4x10.6x
Fri, 04 Oct 2024US$5.9tUS$551.7bUS$124.1b38.7x47.7x10.7x
Sun, 01 Sep 2024US$5.8tUS$551.5bUS$122.1b38.3x47.8x10.6x
Tue, 30 Jul 2024US$5.8tUS$532.0bUS$117.8b40.1x49x10.8x
Thu, 27 Jun 2024US$5.9tUS$531.3bUS$118.1b40.6x50.1x11.1x
Sat, 25 May 2024US$5.4tUS$475.8bUS$105.8b41.4x50.8x11.3x
Mon, 22 Apr 2024US$5.0tUS$466.6bUS$98.4b43.1x51.3x10.8x
Wed, 20 Mar 2024US$5.4tUS$465.8bUS$98.1b45x55x11.6x
Fri, 16 Feb 2024US$5.4tUS$464.9bUS$90.6b42.6x59.5x11.6x
Sun, 14 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Tue, 12 Dec 2023US$5.1tUS$485.6bUS$82.5b47.3x61.4x10.4x
Thu, 09 Nov 2023US$4.7tUS$481.7bUS$79.2b42.3x60x9.9x
Sat, 07 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Mon, 04 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.4x9.7x
Wed, 02 Aug 2023US$4.6tUS$466.2bUS$64.9b48x71.1x9.9x
Fri, 30 Jun 2023US$4.4tUS$460.6bUS$62.3b44.7x71.5x9.7x
Sun, 28 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Tue, 25 Apr 2023US$3.9tUS$453.7bUS$60.6b42.3x63.7x8.5x
Thu, 23 Mar 2023US$3.7tUS$453.7bUS$59.8b41.8x62.4x8.2x
Sat, 18 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Mon, 16 Jan 2023US$3.3tUS$434.5bUS$60.2b39.9x55.1x7.6x
Wed, 14 Dec 2022US$3.5tUS$433.7bUS$60.9b44.2x57x8x
Fri, 11 Nov 2022US$3.3tUS$424.6bUS$62.5b42.9x52.9x7.8x
Sun, 09 Oct 2022US$3.2tUS$412.7bUS$64.6b39.4x50.1x7.8x
Price to Earnings Ratio

50.1x


Total Market Cap: US$3.2tTotal Earnings: US$64.6bTotal Revenue: US$412.7bTotal 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 51.4x 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 12.6x.
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 15% 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 Market0.77%
Tech1.78%
Software0.22%
Systems Software0.46%
Application Software-0.32%
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 24.8%, which is higher than its past year's earnings growth of 20.0% 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 39.2x.
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 20% 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
MSFT MicrosoftUS$519.711.9%
+US$71.1b		24.6%PE37.9x
APP AppLovinUS$704.099.7%
+US$21.0b		436.0%PE94.8x
PLTR Palantir TechnologiesUS$184.953.0%
+US$12.8b		393.3%PE574.8x
CRWD CrowdStrike HoldingsUS$499.965.0%
+US$5.9b		78.4%PS28.9x
DDOG DatadogUS$152.7011.8%
+US$5.6b		31.4%PE427.5x

Latest News

MSFT
US$519.71
Microsoft
7D
1.9%
1Y
24.6%
INTU
US$679.50
Intuit
7D
-2.2%
1Y
11.9%
ORCL
US$289.01
Oracle
7D
-6.3%
1Y
72.3%
APP
US$704.09
AppLovin
7D
9.7%
1Y
436.0%
HUBS
US$440.25
HubSpot
7D
-14.6%
1Y
-14.4%
NOW
US$912.43
ServiceNow
7D
-2.2%
1Y
3.6%
DOCU
US$68.97
DocuSign
7D
-17.9%
1Y
10.7%
ADBE
US$343.72
Adobe
7D
-2.7%
1Y
-32.0%
CRWD
US$499.96
CrowdStrike Holdings
7D
5.0%
1Y
78.4%
SNPS
US$488.78
Synopsys
7D
4.4%
1Y
-1.6%
TEAM
US$149.57
Atlassian
7D
-8.7%
1Y
-6.7%

AI Adoption And Enterprise Cloud Migration Will Unlock Future Opportunity

Atlassian’s consensus Analyst Price Target and Future P/E have both seen only negligible downward adjustments, reflecting little change in forward expectations and consistent valuation, with fair value shifting marginally from $259.82 to $256.66. What's in the News Atlassian completed share repurchases totaling $1,000.3 million under its 2023 buyback and $328.76 million under its 2024 buyback, retiring over 7.1 million shares in aggregate.
DDOG
US$152.70
Datadog
7D
11.8%
1Y
31.4%
MSTR
US$338.41
Strategy
7D
4.7%
1Y
105.5%
CRM
US$235.69
Salesforce
7D
-4.1%
1Y
-15.7%
PLTR
US$184.95
Palantir Technologies
7D
3.0%
1Y
393.3%
PANW
US$206.80
Palo Alto Networks
7D
3.0%
1Y
24.5%