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U.S. Software Industry Analysis

UpdatedDec 14, 2025
DataAggregated Company Financials
Companies425
  • 7D-1.8%
  • 3M-8.0%
  • 1Y4.7%
  • YTD10.4%

Over the last 7 days, the Software industry has dropped 1.8%, driven by a pullback from Oracle of 13%. This takes the industry's 12 month performance to a gain of 4.7%. As for the next few years, earnings are expected to grow by 20% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Mon, 15 Dec 2025US$7.1tUS$645.9bUS$164.8b32.9x43.2x11x
Wed, 12 Nov 2025US$7.5tUS$640.3bUS$158.6b32.5x47.6x11.8x
Fri, 10 Oct 2025US$7.9tUS$621.4bUS$151.7b35.8x52.1x12.7x
Sun, 07 Sep 2025US$7.3tUS$618.2bUS$151.4b35.8x48.4x11.9x
Tue, 05 Aug 2025US$7.6tUS$610.3bUS$147.5b40.4x51.2x12.4x
Thu, 03 Jul 2025US$7.2tUS$598.9bUS$131.3b41.6x55.1x12.1x
Sat, 31 May 2025US$6.7tUS$594.2bUS$131.7b36.8x50.9x11.3x
Mon, 28 Apr 2025US$5.9tUS$581.1bUS$131.9b32x45x10.2x
Wed, 26 Mar 2025US$6.0tUS$582.9bUS$131.0b29.5x46x10.4x
Fri, 21 Feb 2025US$6.6tUS$579.9bUS$129.9b38.3x50.9x11.4x
Sun, 19 Jan 2025US$6.4tUS$569.2bUS$129.3b40.8x49.8x11.3x
Tue, 17 Dec 2024US$6.7tUS$569.1bUS$128.8b41.4x52.3x11.8x
Thu, 14 Nov 2024US$6.5tUS$567.2bUS$126.8b41.9x51.3x11.5x
Sat, 12 Oct 2024US$6.0tUS$551.7bUS$124.1b40.4x48.7x11x
Mon, 09 Sep 2024US$5.6tUS$551.3bUS$123.1b34.9x45.6x10.2x
Wed, 07 Aug 2024US$5.4tUS$541.9bUS$119.2b37.9x45.2x9.9x
Fri, 05 Jul 2024US$6.1tUS$530.5bUS$118.1b41.3x51.6x11.5x
Sun, 02 Jun 2024US$5.1tUS$476.0bUS$106.9b39.8x47.8x10.7x
Tue, 30 Apr 2024US$5.2tUS$476.8bUS$102.7b44.1x50.4x10.9x
Thu, 28 Mar 2024US$5.4tUS$465.8bUS$98.0b45x55.2x11.6x
Sat, 24 Feb 2024US$5.3tUS$466.5bUS$92.9b43.9x57.3x11.4x
Mon, 22 Jan 2024US$5.4tUS$486.2bUS$82.1b46.4x65.6x11.1x
Wed, 20 Dec 2023US$5.2tUS$486.1bUS$82.9b44.3x62.2x10.6x
Fri, 17 Nov 2023US$5.0tUS$482.1bUS$79.5b45.3x62.3x10.3x
Sun, 15 Oct 2023US$4.5tUS$477.3bUS$73.7b44.3x61.3x9.5x
Tue, 12 Sep 2023US$4.7tUS$476.3bUS$73.0b45.4x64.3x9.8x
Thu, 10 Aug 2023US$4.4tUS$473.1bUS$69.0b44.7x63.9x9.3x
Sat, 08 Jul 2023US$4.5tUS$460.7bUS$60.4b47x73.8x9.7x
Mon, 05 Jun 2023US$4.4tUS$459.8bUS$62.0b42.6x70.9x9.6x
Wed, 03 May 2023US$3.9tUS$453.5bUS$61.2b39.7x64.2x8.7x
Fri, 31 Mar 2023US$3.9tUS$453.7bUS$60.6b43.3x64.2x8.6x
Sun, 26 Feb 2023US$3.5tUS$438.0bUS$58.8b42.3x59.1x7.9x
Tue, 24 Jan 2023US$3.4tUS$434.6bUS$60.2b42.3x56.7x7.8x
Thu, 22 Dec 2022US$3.3tUS$434.3bUS$60.3b42.1x54.9x7.6x
Price to Earnings Ratio

54.9x


Total Market Cap: US$3.3tTotal Earnings: US$60.3bTotal Revenue: US$434.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.2x202320242025
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 43.2x which is lower than its 3-year average PE of 55.2x.
  • The industry is trading close to its 3-year average PS ratio of 10.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% 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-0.59%
Tech-2.39%
Software-1.84%
Application Software-0.39%
Systems Software-2.52%
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 24.7%, which is lower than the prior year's growth of 37.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 40.0x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 37% 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
PLTR Palantir TechnologiesUS$183.571.0%
+US$4.3b		141.3%PE399.4x
ADBE AdobeUS$356.432.9%
+US$4.3b		-23.5%PE20.9x
CFLT ConfluentUS$30.0529.9%
+US$2.4b		-1.4%PS9.4x
NOW ServiceNowUS$865.061.3%
+US$2.2b		-22.8%PE103.7x
CRM SalesforceUS$262.230.6%
+US$1.6b		-26.0%PE34x

Latest News

ORCL
US$189.97
Oracle
7D
-12.7%
1Y
9.6%
NOW
US$865.06
ServiceNow
7D
1.3%
1Y
-22.8%

NOW: AI Partnerships And Stock Split Will Drive Long-Term Upside

Analysts have raised their price target on ServiceNow from approximately $1,243 to $1,332, reflecting slightly stronger long term margin expectations that more than offset a modestly lower revenue growth outlook and a small contraction in anticipated future valuation multiples. What's in the News Shareholders approved a 5 for 1 stock split, with the amended and restated certificate of incorporation to take effect on December 17, 2025, increasing the number of authorized common shares (Special Meeting and charter amendment).
PANW
US$191.69
Palo Alto Networks
7D
-3.6%
1Y
-2.5%
FICO
US$1,844.98
Fair Isaac
7D
2.6%
1Y
-14.9%
DOCU
US$71.11
DocuSign
7D
8.3%
1Y
-24.7%
MSFT
US$478.53
Microsoft
7D
-1.0%
1Y
7.0%
SNPS
US$452.95
Synopsys
7D
-3.0%
1Y
-10.9%
ADBE
US$356.43
Adobe
7D
2.9%
1Y
-23.5%
CFLT
US$30.05
Confluent
7D
29.9%
1Y
-1.4%

CFLT: Sale Exploration And Cloud Stabilization Will Shape Future Share Performance

Analysts have nudged their fair value estimate for Confluent higher from approximately $27.87 to $30.77 per share, reflecting increased confidence in stabilizing cloud consumption, stronger than expected subscription and cloud growth, and improved execution that has driven a series of upward price target revisions across the Street. Analyst Commentary Recent Street research has skewed clearly positive, with multiple firms lifting price targets in response to Confluent's improving cloud trends, stronger than expected subscription performance, and a more constructive demand backdrop.
WDAY
US$224.49
Workday
7D
2.1%
1Y
-18.0%

WDAY: AI And Margin Framework Will Drive Renewed Market Confidence

Workday's analyst price target has edged slightly lower to approximately $276 from about $277, as analysts weigh solid, largely in line quarterly results and ongoing AI product momentum against concerns over decelerating organic growth, margin durability, and the inorganic tilt to recent cRPO outperformance. Analyst Commentary Bullish analysts highlight that Workday delivered a solid, largely in line quarter, with revenue, subscription revenue, and cRPO all tracking above consensus expectations, reinforcing confidence in the core execution story despite a volatile macro backdrop.
CDNS
US$323.22
Cadence Design Systems
7D
-4.2%
1Y
5.4%
CRM
US$262.23
Salesforce
7D
0.6%
1Y
-26.0%
FTNT
US$82.22
Fortinet
7D
-5.4%
1Y
-16.1%

FTNT: Firewall Cycle, AI Initiatives And Lawsuit Will Shape Stock Path

Analysts have modestly reduced their price target on Fortinet to about $87 per share. This reflects more cautious views on the stock's risk profile and future earnings multiples, despite solid recent revenue and margin performance.
PLTR
US$183.57
Palantir Technologies
7D
1.0%
1Y
141.3%
APP
US$670.67
AppLovin
7D
-3.1%
1Y
106.7%

APP: Expanded Share Repurchases Will Drive Future Bullish Momentum

Analysts have modestly raised their price target on AppLovin by about 1 percent to approximately 728.25 dollars, citing slightly stronger expected revenue growth, marginally improved profit margins, and a still elevated but easing future earnings multiple. What's in the News AppLovin expanded its share repurchase activity, completing the buyback of 76.6 million shares, or about 21.4% of shares outstanding, for roughly 4.18 billion dollars, including 1.19 million shares repurchased in the latest quarter for 510.29 million dollars (company buyback update).
NBIS
US$87.69
Nebius Group
7D
-10.6%
1Y
185.2%