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U.S. Software Industry Analysis

UpdatedNov 11, 2025
DataAggregated Company Financials
Companies417
  • 7D-2.3%
  • 3M-0.9%
  • 1Y14.9%
  • YTD17.0%

Over the last 7 days, the Software industry has dropped 2.3%, driven by Microsoft declining 1.6%. Meanwhile, Datadog actually outperformed within the industry, gaining 23% in the last week. Over the past 12 months, the industry was up 15%. 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
Tue, 11 Nov 2025US$7.5tUS$640.0bUS$159.1b32.5x47.2x11.7x
Thu, 09 Oct 2025US$7.8tUS$621.4bUS$151.8b36x51.6x12.6x
Sat, 06 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.4x11.9x
Mon, 04 Aug 2025US$7.6tUS$611.0bUS$146.9b39.7x51.4x12.4x
Wed, 02 Jul 2025US$7.2tUS$599.0bUS$131.2b42.2x55.1x12.1x
Fri, 30 May 2025US$6.7tUS$594.0bUS$131.7b36.4x51.1x11.3x
Sun, 27 Apr 2025US$5.9tUS$581.1bUS$131.9b32x45x10.2x
Tue, 25 Mar 2025US$5.9tUS$582.9bUS$131.1b29.9x45.3x10.2x
Thu, 20 Feb 2025US$6.6tUS$588.2bUS$130.0b42.2x50.8x11.2x
Sat, 18 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.5x11.3x
Mon, 16 Dec 2024US$6.7tUS$569.1bUS$128.8b41.2x51.8x11.7x
Wed, 13 Nov 2024US$6.4tUS$567.1bUS$123.7b41.2x52.1x11.4x
Fri, 11 Oct 2024US$6.0tUS$551.6bUS$124.1b37.7x48.7x10.9x
Sun, 08 Sep 2024US$5.6tUS$551.3bUS$123.1b34.9x45.6x10.2x
Tue, 06 Aug 2024US$5.5tUS$541.8bUS$120.2b37x45.8x10.2x
Thu, 04 Jul 2024US$6.1tUS$530.5bUS$118.1b41.3x51.6x11.5x
Sat, 01 Jun 2024US$5.1tUS$475.9bUS$106.9b39.8x47.6x10.7x
Mon, 29 Apr 2024US$5.2tUS$476.7bUS$102.7b43.9x50.4x10.9x
Wed, 27 Mar 2024US$5.4tUS$465.8bUS$98.0b45.1x55.4x11.7x
Fri, 23 Feb 2024US$5.2tUS$466.1bUS$92.8b42.8x55.9x11.1x
Sun, 21 Jan 2024US$5.3tUS$486.2bUS$82.1b46.4x64.9x11x
Tue, 19 Dec 2023US$5.1tUS$486.1bUS$82.9b44.7x61.6x10.5x
Thu, 16 Nov 2023US$4.9tUS$482.1bUS$79.5b45.1x61.8x10.2x
Sat, 14 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Mon, 11 Sep 2023US$4.6tUS$476.3bUS$72.9b44.8x63.6x9.7x
Wed, 09 Aug 2023US$4.5tUS$473.3bUS$68.6b47.2x65x9.4x
Fri, 07 Jul 2023US$4.5tUS$460.7bUS$60.4b47.2x74.3x9.7x
Sun, 04 Jun 2023US$4.4tUS$459.8bUS$62.0b42.6x70.9x9.6x
Tue, 02 May 2023US$4.0tUS$457.2bUS$62.4b41.4x64x8.7x
Thu, 30 Mar 2023US$3.9tUS$453.6bUS$60.6b43x63.6x8.5x
Sat, 25 Feb 2023US$3.5tUS$438.0bUS$58.8b42.3x59.1x7.9x
Mon, 23 Jan 2023US$3.4tUS$434.5bUS$60.2b42.3x55.7x7.7x
Wed, 21 Dec 2022US$3.3tUS$434.3bUS$60.3b41.9x54.3x7.5x
Fri, 18 Nov 2022US$3.3tUS$424.9bUS$62.5b45.3x52.5x7.7x
Price to Earnings Ratio

52.5x


Total Market Cap: US$3.3tTotal Earnings: US$62.5bTotal Revenue: US$424.9bTotal 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 47.2x 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 11.7x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 37% 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 Market0.088%
Tech-1.06%
Software-2.26%
Application Software-2.16%
Systems Software-2.31%
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 21.0% 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 25% 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
DDOG DatadogUS$199.7223.2%
+US$13.5b		63.2%PE656x
PLTR Palantir TechnologiesUS$193.611.5%
+US$6.8b		223.5%PE421.3x
APP AppLovinUS$651.323.0%
+US$6.3b		127.4%PE75.5x
U Unity SoftwareUS$43.1314.9%
+US$2.6b		113.5%PS10.2x
FICO Fair IsaacUS$1.76k6.4%
+US$2.0b		-25.3%PE63.9x

Latest News

PLTR
US$193.61
Palantir Technologies
7D
1.5%
1Y
223.5%
PANW
US$216.54
Palo Alto Networks
7D
0.9%
1Y
8.8%
APP
US$651.32
AppLovin
7D
3.0%
1Y
127.4%
MSTR
US$238.88
Strategy
7D
-9.7%
1Y
-29.7%
FROG
US$64.32
JFrog
7D
33.2%
1Y
108.1%

JFrog Ltd. (NASDAQ:FROG) Stock Rockets 30% As Investors Are Less Pessimistic Than Expected

Nov 09
JFrog Ltd. (NASDAQ:FROG) Stock Rockets 30% As Investors Are Less Pessimistic Than Expected
HUBS
US$386.35
HubSpot
7D
-21.9%
1Y
-43.2%
U
US$43.13
Unity Software
7D
14.9%
1Y
113.5%
DDOG
US$199.72
Datadog
7D
23.2%
1Y
63.2%
FTNT
US$82.28
Fortinet
7D
-6.0%
1Y
-15.3%

FTNT: Firewall Refresh Cycle And Market Dynamics Will Shape Medium-Term Prospects

Fortinet's analyst price target has been revised downward, dropping from approximately $90.32 to $88.30. Analysts cite tempered expectations for core firewall growth and evolving revenue and margin forecasts, despite some improvements in guidance.
FICO
US$1,756.34
Fair Isaac
7D
6.4%
1Y
-25.3%
INTU
US$653.27
Intuit
7D
-3.4%
1Y
-6.3%
CRWD
US$557.53
CrowdStrike Holdings
7D
1.0%
1Y
62.8%
MSFT
US$506.00
Microsoft
7D
-1.6%
1Y
19.6%

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.
CRM
US$241.71
Salesforce
7D
-7.5%
1Y
-29.3%

Salesforce Stock: AI-Fueled Growth Is Real — But Can Margins Stay This Strong?

Salesforce (NYSE: CRM) delivered another strong quarter, proving it can grow revenue while expanding profitability—something investors have demanded for years. For Q2 fiscal 2026 (ended July 31, 2025), revenue climbed 10% year-over-year to $10.2 billion , with subscription and support revenue up 11% to $9.7 billion.
ORCL
US$240.83
Oracle
7D
-6.6%
1Y
27.3%

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$866.30
ServiceNow
7D
-5.2%
1Y
-16.4%

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.