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U.S. Software Industry Analysis

UpdatedNov 06, 2025
DataAggregated Company Financials
Companies417
  • 7D-5.1%
  • 3M-0.5%
  • 1Y19.6%
  • YTD17.4%

Over the last 7 days, the Software industry has dropped 5.1%, driven by Microsoft declining 3.5%. On the other hand IREN is actually up 26%. In the past year, the industry has gained 20%. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Thu, 06 Nov 2025US$7.6tUS$637.6bUS$159.0b35.2x48x12x
Sat, 04 Oct 2025US$7.8tUS$621.4bUS$151.8b35.7x51.6x12.6x
Mon, 01 Sep 2025US$7.4tUS$616.6bUS$150.8b35.9x49x12x
Wed, 30 Jul 2025US$7.6tUS$597.5bUS$130.9b46.9x57.8x12.7x
Fri, 27 Jun 2025US$7.2tUS$599.0bUS$131.1b42x55x12x
Sun, 25 May 2025US$6.6tUS$593.0bUS$131.7b35.3x50.3x11.2x
Tue, 22 Apr 2025US$5.5tUS$580.5bUS$131.7b29.7x41.7x9.4x
Thu, 20 Mar 2025US$5.9tUS$582.8bUS$131.2b29x44.6x10x
Sat, 15 Feb 2025US$6.6tUS$588.2bUS$130.3b42.1x50.6x11.2x
Mon, 13 Jan 2025US$6.3tUS$569.1bUS$129.3b38.8x48.3x11x
Wed, 11 Dec 2024US$6.8tUS$567.9bUS$128.8b43.1x52.8x12x
Fri, 08 Nov 2024US$6.3tUS$563.0bUS$127.1b40.6x49.2x11.1x
Sun, 06 Oct 2024US$6.0tUS$551.7bUS$124.1b38.8x48.1x10.8x
Tue, 03 Sep 2024US$5.8tUS$550.8bUS$122.1b38.9x47.8x10.6x
Thu, 01 Aug 2024US$5.7tUS$540.7bUS$120.1b40.4x47.6x10.6x
Sat, 29 Jun 2024US$6.0tUS$531.0bUS$118.1b40.5x50.7x11.3x
Mon, 27 May 2024US$5.4tUS$475.8bUS$105.8b42.2x50.8x11.3x
Wed, 24 Apr 2024US$5.2tUS$466.5bUS$98.4b42.4x52.6x11.1x
Fri, 22 Mar 2024US$5.4tUS$465.8bUS$98.0b45.4x55.6x11.7x
Sun, 18 Feb 2024US$5.3tUS$465.3bUS$90.9b42.7x58.3x11.4x
Tue, 16 Jan 2024US$5.3tUS$486.2bUS$82.2b46.2x64.1x10.8x
Thu, 14 Dec 2023US$5.1tUS$485.6bUS$82.5b49.3x61.9x10.5x
Sat, 11 Nov 2023US$4.7tUS$482.1bUS$79.1b44.3x59.8x9.8x
Mon, 09 Oct 2023US$4.5tUS$477.3bUS$73.4b45.1x61.5x9.5x
Wed, 06 Sep 2023US$4.6tUS$475.8bUS$72.6b44.8x63.9x9.8x
Fri, 04 Aug 2023US$4.5tUS$466.9bUS$66.7b45.6x66.9x9.5x
Sun, 02 Jul 2023US$4.5tUS$460.6bUS$62.2b45.3x72.4x9.8x
Tue, 30 May 2023US$4.3tUS$458.5bUS$61.6b42.1x70.2x9.4x
Thu, 27 Apr 2023US$3.9tUS$457.3bUS$62.2b42.1x62.8x8.5x
Sat, 25 Mar 2023US$3.8tUS$453.7bUS$59.8b42.3x63.9x8.4x
Mon, 20 Feb 2023US$3.6tUS$437.4bUS$58.1b42.9x61.7x8.2x
Wed, 18 Jan 2023US$3.3tUS$434.5bUS$60.2b40.1x55.4x7.7x
Fri, 16 Dec 2022US$3.4tUS$433.8bUS$61.1b42.8x54.9x7.7x
Sun, 13 Nov 2022US$3.4tUS$424.7bUS$62.5b42.9x54.1x8x
Price to Earnings Ratio

54.1x


Total Market Cap: US$3.4tTotal Earnings: US$62.5bTotal Revenue: US$424.7bTotal 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 48.0x which is lower than its 3-year average PE of 55.5x.
  • The 3-year average PS ratio of 10.4x is lower than the industry's current PS ratio of 12.0x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 36% 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 Market-1.58%
Tech-3.74%
Software-5.14%
Application Software-2.80%
Systems Software-6.15%
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 23.6%, 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 39.7x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 24% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 18% 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
IREN IRENUS$76.4126.5%
+US$4.4b		592.1%PE240.8x
U Unity SoftwareUS$42.3614.1%
+US$2.2b		95.5%PS10.1x
CIFR Cipher MiningUS$24.7126.1%
+US$2.1b		254.5%PS47.3x
FICO Fair IsaacUS$1.63k4.0%
+US$1.5b		-22.1%PE61.8x
FTNT FortinetUS$85.992.1%
+US$1.4b		6.3%PE34x

Latest News

FTNT
US$85.99
Fortinet
7D
2.1%
1Y
6.3%
APP
US$617.05
AppLovin
7D
-2.2%
1Y
266.1%
FICO
US$1,629.20
Fair Isaac
7D
4.0%
1Y
-22.1%
CRM
US$252.68
Salesforce
7D
0.5%
1Y
-17.7%
U
US$42.36
Unity Software
7D
14.1%
1Y
95.5%
ADSK
US$300.96
Autodesk
7D
1.3%
1Y
-0.5%

ADSK: Future Margin Expansion Will Fuel Share Price Momentum

Autodesk's analyst price target has been raised, with most estimates climbing by $15 to $38 per share, as analysts cite better-than-expected quarterly results and increased confidence in long-term margin and revenue growth targets. Analyst Commentary Bullish analysts responded to Autodesk’s quarterly results by significantly raising their price targets.
MSFT
US$507.16
Microsoft
7D
-3.5%
1Y
19.2%

MSFT: Future Cloud Demand Will Drive Expansion In AI Infrastructure And Partnerships

Analysts have increased their price target for Microsoft by $5.62 to $626.65. They cite continued momentum in cloud growth, strengthened profit margins, and improving revenue growth expectations driven by Azure’s performance and expanded partnerships in artificial intelligence.
SNPS
US$409.11
Synopsys
7D
-10.2%
1Y
-26.0%
CRCL
US$113.03
Circle Internet Group
7D
-14.2%
1Y
n/a
PLTR
US$187.90
Palantir Technologies
7D
-5.5%
1Y
238.4%
MSTR
US$255.00
Strategy
7D
-7.4%
1Y
-1.1%
CIFR
US$24.71
Cipher Mining
7D
26.1%
1Y
254.5%
IREN
US$76.41
IREN
7D
26.5%
1Y
592.1%

IREN's Bold Moves in Sustainable Bitcoin Mining & AI Data Centers

The Hyperscaler Catalyst Arrives: $9.7B Microsoft Deal It’s happened. The hyperscaler deal we’ve been anticipating since my last update has finally materialized - and it’s a big one.
ORCL
US$250.31
Oracle
7D
-9.1%
1Y
38.1%

ORCL: Accelerating AI Cloud Demand Will Drive Upside Through Major Multi-Year Contracts

Oracle's analyst price target saw a modest increase, rising by $10 to $360. Analysts pointed to continued strength in AI infrastructure demand and the company’s ability to accelerate earnings growth through fiscal 2028.
NOW
US$879.63
ServiceNow
7D
-3.5%
1Y
-11.5%

NOW: AI Partnerships And Workflow Expansion Will Drive Upside Momentum

Analysts have raised their price target for ServiceNow, increasing the fair value estimate from $1,142.59 to $1,156.59. This change is due to adjustments in growth and profit margin expectations.
DGNX
US$20.00
Diginex
7D
26.6%
1Y
n/a